Marilyn Luann Nolan, Multi-Million-Dollar Political Corruption Scheme, Missouri 2017

The former CEO of a charity headquartered in Springfield, Missouri, has pleaded guilty to her role in a multi-million-dollar political corruption scheme that involved bribes and campaign contributions for elected public officials in Missouri and Arkansas.

Marilyn Luann Nolan, 68, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush on Friday, November 9, 2018, to one count of conspiracy to embezzle and misapply the funds of a charitable organization that received federal funds.

By pleading guilty, Nolan admitted that she conspired with others from 2008 to June 30, 2017, to misapply millions of dollars of the charity’s funds for substantial, undisclosed payments to lobbying firms and political advocates, monetary and in-kind contributions to the campaigns of candidates for public office, and to bribe public officials. Nolan also admitted that she knew her co-conspirators defrauded the charity in order to enrich themselves, and her.

Nolan began working at Alternative Opportunities Inc., in 1992. In 2015, that company merged with Preferred Family Healthcare Inc., after which it continued to be known as Preferred Family Healthcare. Nolan was the chief executive officer and oversaw the charity’s lobbying and governmental affairs activities.

Preferred Family Healthcare and its subsidiaries provided a variety of services to individuals in Missouri, Arkansas, Kansas, Oklahoma and Illinois, including mental and behavioral health treatment and counseling, substance abuse treatment and counseling, employment assistance, aid to individuals with developmental disabilities and medical services.

Under her plea agreement, Nolan also admitted that she and her conspirators caused the charity to misapply its funds to pay for political advocacy, including lobbying, that violated both IRS rules governing tax-exempt organizations, and federal laws and regulations governing recipients of federal grants and contracts.

The charity, Preferred Family Healthcare, was absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of or in opposition to any candidate for elective public office, according to IRS rules.

Defendant/respondent: Marilyn Luann Nolan

Exact criminal charges: conspiracy to embezzle and misapply the funds of a charitable organization that received federal funds

City and state: Springfield, Missouri

Exact date with month/day/year: Friday, November 9, 2018

Sentence or outcome: Not specified in the provided text; further information on the outcome is not available

Dollar amounts: Millions of dollars

Source: https://www.justice.gov/usao-wdmo/pr/former-charity-ceo-pleads-guilty-multi-million-dollar-political-corruption-scheme