Maine Commission Cuts Ties with Low Preforming AmeriCorps Grantee

The OIG received a Hotline allegation that an AmeriCorps Executive Director had misapplied AmeriCorps program funds resulting in the termination of the caller’s employment.  The caller also claimed that the program did not having sufficient funding to complete the program year.

We contacted personnel from the Maine Commission for Community Service and determined that the caller’s position was not an AmeriCorps funded staff position and that her dismissal was a direct result in the reduction in funding the agency received from its outside sources.  State Commission personnel conducted a site visit and reviewed the fiscal documents and interviewed the current members.  There was no evidence that program funds were mismanaged.  Maine State Commission personnel informed the OIG that it had not renewed the grantee’s grant due to their inability to obtain matching funds and to low enrollment.

Corporation Employee Alleged to Receive a Paid Vacation from a Corporation Contractor

The OIG received a Hotline allegation that a Corporation employee received a paid vacation, from a former Corporation employee’s company, in exchange for providing information the Corporation employee obtain as part of her official duties.

The investigation revealed the employee sought approval from the agency’s Ethics Officer prior to releasing the information.  There was no evidence that the employee received a paid vacation.

Kentucky AmeriCorps Member Sentenced and Ordered to Pay Restitution for Stealing Program Funds

A joint investigation with the Kentucky State Police disclosed that an AmeriCorps member embezzled $4,250 in AmeriCorps grant funds when she stole, forged and negotiated grantee checks for personal use.

The Commonwealth of Kentucky Attorney General’s Office prosecuted the individual who was sentenced to three years confinement, which was suspended.  The individual was placed on three years’ supervised probation and required to make restitution.  Corporation management also debarred the individual for a period of three years.

Texas VISTA Supervisor Debarred for Violating Nepotism Policy

The OIG received information that a VISTA Supervisor violated the Corporation’s VISTA nepotism policy when she knowingly allowed her biological sister and her biological daughter to serve in the VISTA program she supervised.  The VISTA supervisor misled Corporation employees causing the Corporation to disburse $7,774.29 in federal funds to the two ineligible VISTA members.

The Western District of Texas United States Attorney's Office declined prosecution citing that the dollar loss did not meet its office's prosecution threshold.

This matter was referred to Corporation management, who issued a request for payment to the grantee in the amount of $7,774.29.  The VISTA supervisor was also debarred for a two year period.

U.S. Citizenship not required for Virgin Island Retired Senior Volunteer Program

The OIG received a Hotline allegation that a Virgin Island (VI) Retired Senior Volunteer Program (RVSP) Director was requiring contributions of a $1.00 from each RSVP and Foster Grandparent Program (FGP) volunteer at monthly meetings to support a hospitality fund.  The complaint alleged that the volunteers felt threatened in that if they did not pay the required contribution they would be terminated from the program and believed that the funds were being mishandled.

The investigation determined that after the volunteers voted to keep the hospitality fund program, officials initiated a donation policy outlining the program requirements and how the funding would be used.  There was no evidence that the funds were mishandled.

During our investigation we also reviewed 43 volunteer files from the St. Thomas (VI) RSVP and FGP programs.  During the review of the files it was noted that copies of birth certificates and/or U.S. passports were posted into their files. The review identified that 24 files were missing proper citizenship documentation.  The Corporation's Senior Corps programs do not mandate a check of citizenship as a requirement for enrollment, but it appeared the program required the volunteers to submit proof of citizenship.

Although the Corporation’s Senior Corps programs do not require citizenship verification, a Federal rule enacted by the Welfare Reform Act of 1996 requires that citizenship or legal residency be established for any individuals to participate in grant programs that would provide to the individual a so-called “public benefit.”  
 
We recommended to Corporation management that it undertake an evaluation as to whether the stipends, insurances, transportation assistance, and meals provided to Senior Corps participants under the Senior Corps regulations constitute a “public benefit,” whereby requiring the program to institute eligibility rules based on citizenship or legal migration status.

The Corporation responded with a legal opinion which stated in effect that that the Welfare Reform Act does not apply to the Corporation’s Senior Corps Programs; therefore citizenship is not required for its volunteers.

Atlanta VISTA Member Debarred for Falsifying Childcare Enrollment

The OIG received information that a VISTA member fraudulently received childcare benefits by falsifying his monthly daycare invoices and attendance logs.  The investigation disclosed evidence that the VISTA member submitted false monthly invoices and attendance logs to allow a relative childcare provider to receive $1,065 in childcare benefit payments the individual was not entitled.  The former VISTA member admitted to falsifying the monthly daycare invoices and attendance logs.
    
The Northern District of Georgia, United States Attorney's Office declined prosecution citing that the dollar loss did not meet its office's prosecution threshold.

This matter was referred to Corporation management, who stated a debt letter would not be issued to recover the stolen funds, but did debar the former VISTA member for a period of one year.

Idaho Foster Grandparent Program Employees Sentenced and Order to Repay Embezzle Funds

The OIG received information that two Foster Grandparent Program grantee employees embezzled $62,763.54, when they fraudulently used the grantee’s credit card for personal use.

Both individuals plead guilty and were prosecuted by the District of Idaho, United States Attorney’s Office.  One individual was sentenced to probation for a term of five years, home detention for a period of nine months, an intermittent term of confinement to be served six consecutive weekends, and pay restitution in the amount of $48,861.47.  The other individual was sentenced to probation for a term of five years, home detention for a period of ninety days, and to pay restitution in the amount of $13,902.07.  Corporation management also debarred both individuals for a period of three years.

California AmeriCorps Director Sentenced for Falsifying Timesheets and Education Awards / Grantee to Repay Disallowed Educations Awards

The OIG received an allegation that an AmeriCorps director fraudulently inflated AmeriCorps members’ timesheets, and fraudulently certified education awards for which members that were not entitled, totaling $57,700 in education awards.

The results of our investigation were referred to the U.S. Attorney’s Office, Southern District of California, San Diego, CA, for prosecution.  The director plead guilty and was placed in a 24 month pre-trial release program.  The US Attorney’s Civil Section deferred recovery of the funds to the agency.

Corporation management informed the OIG that it concurred with the investigative findings and that the Corporation would seek reimbursement from the grantee for the disallowed costs.

Oklahoma Foster Grandparent Program Owes $1.3 Billion for Failing to Meet Program Requirements and Misuse of Program Funds

A grantee employee reported that an Oklahoma Foster Grandparents Program (FGP) Executive Director misused FGP program funds when he paid staff employees for preforming non-grant related work that directly benefited the grantee.

Our investigation verified that staff employees were improperly paid with FGP funds for non-grant work by the Executive Director.  The grantee’s attorney informed the OIG that the grantee was unable to locate fiscal records showing how it had expended the FGP grant funds in response to an OIG subpoena.

Corporation management determined that based on the grantees failure to provide documentation of its FGP grant expenditures it disallowed $1,133,297.76 in grant payments it had received.  Corporation management issued the grantee a debt letter requesting repayment of the full amount.

Topeka Senior Companion Program Manager Sentenced and Order to Repay Embezzles Funds

A joint investigation with the Topeka Police Department disclosed that a Senior Companion Program manager devised a scheme in which she fraudulently requested and obtained program funds, purportedly for stipends and other entitlements for Senior Companion volunteers.  The program manager then withdrew the money from the grantee’s account, using a program issued debit card to obtain cash at automated teller machines located within the greater Topeka area as well as at various casinos in Kansas and Oklahoma.  

The program manager also fraudulently increased her pay, without the approval of the grantee’s Board of Directors, and authored and cashed checks without authorization.  The program manager diverted $28,433.66 dollars in Federal program funds for her personal use.

The individual was prosecuted by the District of Kansas, United States Attorney’s Office.  The program manager plead guilty to one count of Program Fraud and was sentenced to three years supervised probation, six months of home detention, and was required to make full restitution.  Corporation management also debarred the individual for a period of two years

An investigation disclosed that a former VISTA program coordinator in Maryland conspired with her husband to enroll their employees in the Corporation’s VISTA program so that Federal funds could be used to supplement their private company employees’ of salaries and provide them with benefits. As a result of their activities, they misapplied more than $37,000 of Federal program funds.

The matter was referred to DOJ, which declined criminal prosecution in favor of civil action. The matter was then referred to the DOJ Civil Division and was accepted for civil action, but subsequently declined when the subjects filed bankruptcy and did not have any assets to recoup the lost Federal funds.

The matter was also referred to Corporation management and the subject was debarred by the Corporation from participating in Federal procurement and non-procurement programs for one year.

An investigation disclosed an AmeriCorps executive director in Mississippi misapplied more than $99,000 of Federal program funds when the executive director enrolled child care employees in the AmeriCorps program so that AmeriCorps funds could be used to supplement the employees’ salaries and provide them with benefits.

The matter was referred to DOJ for prosecution and the target subsequently entered a plea agreement and was sentenced to two years of probation, 200 hours of community service, was fined $3,000 and required to pay restitution of more than $99,000.

The matter was also referred to Corporation management and the subject was debarred by the Corporation from participating in Federal procurement and non-procurement programs for three years.

An investigation disclosed an AmeriCorps executive director in Georgia misapplied Federal program funds to supplement employee salaries and falsely certified service hours to qualify them for education awards to which they were not entitled. The executive director also falsely reported AmeriCorps members’ hours that were performed outside the grant period, awarded service hours to members who performed service outside the scope of the grant, and inflated service hours on the members’ time sheets. In total, the executive director misapplied more than $370,000 of Federal program funds.

The matter was referred to DOJ, which declined criminal prosecution in favor of civil action. DOJ Civil Division declined to take civil action.

The matter was also referred to Corporation management and the subject was debarred by the Corporation from participating in Federal procurement and non-procurement programs for three years.

Applicant Enrolls in Multiple VISTA Programs Using Multiple Names and Social Security Numbers

A Corporation employee reported that they had discovered that an individual had attempted to enroll in the VISTA during program years 2010 and 2011 utilizing different social security numbers.

Our investigation revealed that the individual had applied to numerous VISTA programs using multiple names and social security numbers.  There was no evidence that the individual received any program funds since the person never served or serves no more than a few weeks at the VISTA sites located in New Jersey, Nebraska and Utah.

The United States Attorney’s Office for the District of Columbia declined to prosecute the individual, if located, citing there was no monetary loss to the Federal Government.  Corporation management is monitoring VISTA applications in the event the individual attempts to reenroll.