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Three Texas Residents Charged in Meal Program Scam
PITTSBURGH, PA – Three residents of Texas have been indicted by a federal grand jury in Pittsburgh on charges of mail and wire fraud conspiracy, money laundering conspiracy, and obstruction of justice, Acting United States Attorney Stephen R. Kaufman announced today.
The three-count Indictment, returned on August 25, 2021 and unsealed yesterday, names Charles Simpson, 43, of Southlake, Texas, Tanisha Jackson, 49, and Paige Jackson, 29, both of Lancaster, Texas, as defendants. Charles Simpson and Paige Jackson were arrested yesterday in the Dallas area and will have their initial appearances today in the Northern District of Texas. Tanisha Jackson remains at large.
According to the Indictment, Simpson, Tanisha Jackson, and Paige Jackson controlled and operated HOIN, Inc. (“HOIN”), a Texas-based non-profit organization. The defendants allegedly caused HOIN (a/k/a “Helping Others In Need”) to enroll as a “sponsor” in two programs funded by the United States Department of Agriculture (“USDA”) for the purpose of providing meals to underprivileged youth—the Child and Adult Care Feeding Program (“CACFP”) and the Summer Food Service Program (“SFSP”) (collectively, “the feeding programs”). CACFP funded after-school meal service during the school year, while SFSP operated in the summer months. In Pennsylvania, the Pennsylvania Department of Education (“PADOE”) administered the USDA-funded feeding programs.
As alleged, the defendants, each of whom was previously excluded from participating in the feeding programs in other states, caused the submission of false enrollment documentation to PADOE on behalf of HOIN in connection with its participation in CACFP and SFSP between 2015 and 2019. The Indictment alleges that, among other misrepresentations, HOIN’s applications to PADOE used aliases for Charles Simpson and Tanisha Jackson as a means to obscure their involvement and falsely certified that none of its principals had been excluded from the feeding programs. The Indictment further alleges that the defendants caused HOIN to submit reimbursement claims for hundreds of thousands of meals that were never served to eligible children by either inflating the number of meals that, in fact, were served or by seeking reimbursements for meals purportedly served on days on which the identified feeding site was not operating at all.
To conceal their fraudulent conduct and justify HOIN’s claimed meal service, the defendants allegedly submitted fabricated documents to PADOE in connection with periodic program reviews, and on certain occasions Tanisha Jackson impersonated Paige Jackson, her daughter, in interactions with PADOE. In total, PADOE issued reimbursement payments to HOIN in excess of approximately $4 million between 2015 and 2019.
The Indictment further alleges that Simpson and Tanisha Jackson engaged in numerous financial transactions involving the proceeds of their alleged fraud. Specifically, Simpson and Tanisha Jackson allegedly spent hundreds of thousands of dollars in HOIN reimbursements on shopping sprees at high-end apparel stores, personal air travel and lodging, and the acquisition of at least nine luxury vehicles, including a Bentley, two Land Rovers, two Maseratis, two Mercedes, a Hummer, and a Porsche. The defendants also allegedly withdrew cash from HOIN bank accounts in excess of $10,000 on more than a dozen occasions.
In addition, Simpson is charged with obstruction of justice based on multiple lies he allegedly told federal law enforcement officers during a voluntary interview.
“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 Kaufman. “Submitting fraudulent claims equals stealing, and those who perpetrate financial fraud against the government will be vigorously prosecuted.”
Key Facts
- State: Pennsylvania
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: DOJ Press Release â†â€â€
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