A St. Paul nonprofit that was cut off from the meals programs at the center of the massive Feeding Our Future fraud scheme is dropping its legal fight to rejoin the programs.
Partners in Nutrition on Wednesday filed to dismiss its lawsuit against the state after the Minnesota Department of Education terminated the nonprofit from the meal programs in May. The organization, which operates as Partners in Quality Care and was sponsoring more than 200 food distribution sites, had its funding cut off in January when the FBI investigation was revealed.
No one at Partners in Nutrition has been criminally charged. Leaders of the nonprofit and its attorney Mark Weinhardt didn't return messages Thursday. In court documents, Weinhardt has said that the organization has never been accused of wrongdoing and there's no evidence it knowingly submitted a fraudulent claim.
Partners in Nutrition was among the largest sponsors of the summer and school year meals programs meant to feed needy children in Minnesota, alongside Feeding Our Future, the nonprofit at the center of the fraud scheme. Prosecutors say it's the largest pandemic-related fraud in the country.
The Minnesota Department of Education oversees U.S. Department of Agriculture funding to the state's schools, nonprofits and community organizations for providing snacks and meals to kids in need after school or during the summer. While much of the investigation focused on Feeding Our Future, the Education Department also suspended payments to Partners in Nutrition when FBI search warrants named Partners as a sponsor to food programs the FBI was investigating.
Partners argued that the Education Department rushed to cut its reimbursement payments. An appeals panel at the Education Department agreed in May that the nonprofit hadn't been given a chance to fix any perceived problems. But then later that month, the Education Department terminated Partners from the program, citing a May 20 unsealed search warrant that tied Partners and one of its board members to the fraud investigation.
Partners sued the state in September, claiming the Education Department illegally forced them to suspend operations and was punishing the organization "administratively for crimes it did not commit." In October, a federal judge denied Partners' request to rejoin the meals program. An Education Department review panel separately upheld the termination decision Oct. 14.
Partners is still challenging a separate action at the Minnesota Court of Appeals by the Education Department to deny most of Partners' subcontractors' earlier reimbursement claims.