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A Minnesota “violence interruption” charity has collapsed after its leaders allegedly used $6.5 million worth of charitable funds to bankroll lavish lifestyles and a private liquor store.
Minnesota Attorney General Keith Ellison announced on Friday a civil lawsuit against nonprofit We Push for Peace and its former directors, Trahern Pollard and Jaclyn McGuigan.
The organization, which held lucrative contracts for community outreach and violence prevention, was driven into the ground by “rampant abuse” and blatant self-dealing, prosecutors allege.
According to the complaint, Pollard personally pocketed more than $6 million of the diverted charitable funds. Instead of helping the community, the charity’s money allegedly fueled a life of luxury for Pollard, paying for trips to Las Vegas, luxury vehicles and massive shopping sprees at a Harley Davidson showroom and spa stores.
INSIDE MINNESOTA’S $1B FRAUD: FAKE OFFICES, PHONY FIRMS AND A SCANDAL HIDING IN PLAIN SIGHT
Pollard is also accused of using the nonprofit to pay off his child support, settle a personal tax bill with the IRS, and subsidize his private, for-profit businesses — including a used car dealership and liquor store.
McGuigan, who acted as the charity’s treasurer, allegedly transferred a recurring $1,000 per week of nonprofit funds into her own personal account and stole thousands more in government grant funds that she claimed were for “administrative” expenses.
“Instead of helping the community, they helped themselves to millions of dollars that should have gone into the community,” Ellison wrote in a statement.
MASSIVE MEDICAID FRAUD SCHEME PUTS MINNESOTA’S FEDERAL FUNDING AT RISK — AND FALLOUT COULD WIDEN
Prosecutors noted that when the City of Minneapolis requested the nonprofit’s assistance during Operation Metro Surge, a major Homeland Security enforcement operation in Minnesota, the once-multimillion-dollar organization was “utterly incapable” of answering the call.
When state investigators began closing in, Pollard allegedly submitted false statements under the penalty of perjury, falsely claiming a child support payment was “nonprofit overhead” and that a $35,000 payout to his personal friends was “Chicago payroll.”
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To justify the missing millions, prosecutors claim Pollard quickly incorporated a fake “for-profit arm” of the charity just days after the Minnesota Attorney General’s Office began asking questions.
He also allegedly set up another new, for-profit corporation called “Change Makers” to drain the nonprofit’s remaining revenue and diverted lucrative community liaison contracts, including a deal with Whole Foods, away from the charity and straight into his newly formed private company, according to court documents.
