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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsTexas nonprofit stole millions from Pennsylvania in meal reimbursement scheme
A mother and daughter from suburban Dallas and an associate there have been indicted in Pittsburgh on charges of ripping off the Commonwealth of Pennsylvania for millions in fraudulent reimbursements for federal low-income meal programs while operating out of a rented Sharpsburg, Pa, location. Prosecutors said Tanisha Jackson, 49, and her 29-year-old daughter Paige, along with Charles Simpson, 43, never delivered the meals and instead used stolen money to pay for Maserati and Mercedes cars, fancy clothes, vacations and other luxuries.
The three are charged with mail and wire fraud conspiracy, money laundering and obstruction. The defendants allegedly created a nonprofit to provide meals to underprivileged children in our area, but instead billed and were reimbursed for services they never provided; they then used those ill-gotten funds for extravagant personal luxury purchases, said Acting U.S. Attorney Steve Kaufman in a statement.
Through HOIN, the three submitted false enrollment documents to Pennsylvania authorities in connection with the feeding programs between 2015 and 2019. The FBI and the criminal division of the IRS, the grand jury said HOIN submitted reimbursement claims for thousands of meals that were never served. They either inflated the numbers of meals served or said they served meals on days when the feeding sites weren't even operating, according to the charges.
In all, Pennsylvania paid HOIN, "Helping Others in Need", more than $4 million between 2015 and 2019. In addition, Mr. Simpson and Tanisha Jackson are accused of spending the stolen government money on shopping sprees for clothes, travel and
at least nine high-end cars: a Bentley, two Land Rovers, two Maseratis, two Mercedes, a Hummer and a Porsche.
They spent $500,000 on the cars alone, the indictment said,
and another $120,000 on goods from Gucci, Louis Vuitton, Neiman Marcus and other high-end clothing companies.
https://www.post-gazette.com/news/crime-courts/2021/09/15/Feds-Texas-nonprofit-stole-millions-from-Pennsylvania-in-meal-reimbursement-scheme/stories/202109150111
CrispyQ
(36,221 posts)Someone either wasn't paying attention or was in on it.
TexasTowelie
(111,282 posts)which is when the dollar amounts add up. However, it also takes awhile for enough people to report the suspicion of cheating or an auditor catches discrepancies such as providing meals when centers were closed. Add in some more time for investigation and indictments while the scheme is operating at full throttle and it becomes a multi-million dollar heist.
bucolic_frolic
(42,651 posts)though no idea if he was involved in nabbing the thieves.