Erica MacDonald Speaks With KSTP on Claw Back Efforts in Nonprofit Fraud Case

Partner and former U.S. Attorney for Minnesota Erica MacDonald spoke with KSTP about the efforts in recovering $250 million in stolen taxpayer money in connection to a massive COVID-related fraud scheme involving a Minnesota-based nonprofit organization. MacDonald explained to KSTP that the task of identifying and recovering the proceeds of fraud belongs to a team known as the Financial Litigation Unit.

“It is a set of individuals who use all the tools at their disposal to find every asset they can,” MacDonald said. “And I can tell you, I’ve worked with these folks in the U.S. Attorney’s office here in Minnesota and they are tenacious. They use all the tools that they’re available.”

Yet even as those efforts continue, investigators acknowledge it will be difficult to recover every dollar due to the depreciation of vehicles and other property seized as well as money that disappeared with co-conspirators who have fled the country.

“There are a variety of reasons why that money, even though it went out, isn’t going to all come back in,” MacDonald added. “I think the most important thing for the public to take away from that is that is why we need strong controls in place to make sure it doesn’t happen in the first place.”