Subway fraud – A federal indictment alleges a former nonprofit executive and her brother pocketed millions in kickbacks intended for Subway restaurant owners.
The Independent Purchasing Cooperative was designed as a shield for Subway franchisees, a nonprofit tasked with a singular, vital mission: negotiating the lowest possible prices for the supplies needed to run thousands of sandwich shops. For two decades, that cooperative was led by Janet Risi Field.
Federal prosecutors now allege that while Risi Field was securing those deals. she and her brother. 70-year-old Steven Louis Risi. were orchestrating a massive financial betrayal. A grand jury has indicted the siblings, accusing them of running a kickback scheme that cost franchisees more than $80 million.
From 1996 until 2021, Risi Field served as the face of the cooperative. Prosecutors contend she bypassed the interests of the restaurant owners by forging secret agreements with vendor brokers. In exchange for favorable contracts. those brokers allegedly funneled a portion of their profits back to the siblings through a network of shell companies. These entities reportedly collected upwards of $60 million. a fortune that prosecutors say funded a lifestyle of luxury. including jewelry. private clubs. and real estate holdings in Florida and North Carolina. The funds even allegedly covered the salaries of Risi Field’s personal assistant, housekeeper, and handyman.
The scale of the alleged deception is framed by the disconnect between the nonprofit’s mandate and the reality of its leadership. While the cooperative served an American multinational fast-food chain specializing in submarine sandwiches—a brand with over 20. 000 locations in North America—the board remained in the dark. When the board fired Risi Field in 2021 for unrelated reasons, the depth of the alleged fraud was still undiscovered. She departed the organization with a severance package exceeding $6 million.
Though the parent restaurant company is not named in the indictment, the legal consequences for the siblings are severe. If convicted on the charges. Janet Risi Field. 66. and Steven Louis Risi face a maximum sentence of 20 years in federal prison. The case highlights the vulnerability of the cooperative model. where the people meant to secure the best deals for small business owners held the power to enrich themselves at those owners’ expense.
Subway fraud Janet Risi Field Steven Louis Risi indictment kickback scheme Independent Purchasing Cooperative