Siblings Indicted in Alleged $80 Million Subway Kickback Scheme

Janet Risi Field and her brother Steven Louis Risi pocketed more than $60 million in secret kickbacks while running the nonprofit that negotiated supply deals for Subway franchisees, federal prosecutors announced. NBC 6 South Florida reported that a federal grand jury indicted the siblings in a scheme that allegedly cost restaurant owners more than $80 million over multiple decades. Risi Field founded the Independent Purchasing Cooperative in Miami-Dade and served as its chief executive from 1996 until her departure in 2021.

Shell Companies and Slush Funds Built an $80 Million Defraud Scheme

The Independent Purchasing Cooperative was formed to secure the lowest prices on food, supplies, and services for independently owned restaurant locations. According to NBC 6 South Florida, Risi Field utilized her authority to sign vendor contracts in exchange for secret deals where vendor brokers shared a portion of their profits with her family. Prosecutors stated that shell companies concealed more than $60 million in kickbacks, which funded private investments, jewelry exceeding $400,000, and real estate in Florida and North Carolina.

A multimillion-dollar slush fund covered Risi Field’s personal assistant, housekeeper, and handyman beginning in the early 2000s. Authorities detailed that approximately $3.4 million from the scheme paid off credit card expenses, while around $1 million went directly into bank accounts controlled by the siblings. Risi Field allegedly triggered roughly $25 million in total slush fund payments and caused a co-conspirator to pay about $8 million around 2011 to settle a lawsuit from a former contractor who questioned her vendor relationships.

Board Paid Risi Field $6 Million in Severance

NBC 6 South Florida reported that the Independent Purchasing Cooperative board of directors remained entirely unaware of the illicit payments when they fired Risi Field in 2021 for unrelated reasons. Following her termination, she walked away with more than $6 million in severance. Federal prosecutors charged Janet Risi Field and Steven Louis Risi with conspiracy to commit money laundering and two counts of engaging in monetary transactions involving unlawful property, while Risi Field faces additional wire fraud charges.

If convicted, the siblings face up to 20 years in prison for the money laundering conspiracy charge. NBC 6 South Florida added that Risi Field faces a maximum of 20 years for wire fraud and up to 10 years for each monetary transaction count, while Risi faces up to 10 years on each of his monetary transaction counts.