Ex-Charity Exec Pleads Guilty in $Million Bribery Scheme

Bribery and Embezzlement Scheme Unfolds in Springfield, Mo.

SPRINGFIELD, Mo. – Milton Russell Cranford, aka “Rusty,” 57, of Rogers, Arkansas, has pleaded guilty to one count of federal program bribery in a multi-million-dollar scheme.

Cranford, a former executive of Preferred Family Healthcare Inc. (formerly known as Alternative Opportunities Inc.), a nonprofit corporation headquartered in Springfield, was an executive at the charity and oversaw its operations and lobbying efforts in the state of Arkansas.

By pleading guilty, Cranford admitted to paying bribes to Arkansas State Senator Jonathan Woods, Arkansas State legislator Henry Wilkins IV, a person identified in court documents as “Arkansas Senator A,” and others, to provide favorable legislative action for Cranford, his clients, and Preferred Family Healthcare.

The bribes enabled Cranford and other executives of the charity to engage in multiple schemes to embezzle, steal, and unjustly enrich themselves at the expense of the charity, including diverting charity funds to for-profit companies owned by the executives and paying for their personal expenses using corporate credit cards.

Cranford also entered into an illegal kickback scheme, paying over $600,000 in illegal kickbacks to a charity executive in exchange for more than $3.5 million in payments made to The Cranford Coalition.

A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

Acting Assistant Attorney General John P. Cronan and U.S. Attorney Tim Garrison announced the guilty plea, which was accepted by U.S. Magistrate Judge David P. Rush.

The case was investigated by IRS-Criminal Investigation, the FBI and the Offices of the Inspectors General from the Departments of Labor, Health and Human Services, Housing and Urban Development.