ALBUQUERQUE, N.M. – The Santa Fe Boys and Girls Club has been caught in a web of deceit and mismanagement, allegedly using $750,986.51 in federal grant funds intended for a new facility.
According to a settlement agreement announced by U.S. Attorney Fred J. Federici, the Club failed to build a new facility as outlined in the agreements and instead used the funds to purchase a parcel of land located at 1107 Ocate Road in Santa Fe, New Mexico.
The U.S. Department of Housing and Urban Development (HUD) awarded the Club two grants, one in 2003 for $268,245 and another in 2004 for $497,050.
“The United States relies on grant recipients to use taxpayer-funded grants appropriately,” said U.S. Attorney Federici. “Failure to do so violates the law and the public trust and will be vigorously pursued by the U.S. Attorney’s Office.”
The settlement agreement requires the Club to pay $1,407,640.58 to the United States, releasing them from any civil or administrative monetary claim for their conduct under the False Claims Act.
The U.S. Attorney’s Office alleges that the Club’s failure to use the grant funds as outlined, selling portions of the land, and failing to remit the proceeds of those encumbrances to the United States violate federal law and the grant agreements.
Assistant United States Attorney Sean Cunniff and Auditor Julie Chappell represented the United States in this settlement agreement.
Defendant/respondent: Santa Fe Boys and Girls Club
Criminal charges: Misuse of federal grant funds
City and state: Albuquerque, New Mexico
Exact date: Not specified, but settlement announced in 2023
Sentence or outcome: Paid $1,407,640.58 to the United States in settlement
Dollar amounts: $750,986.51 in federal grant funds misused, $1,407,640.58 paid in settlement
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- Mansfield, Embezzlement, New Mexico 2023 · Oklahoma
Key Facts
- State: New Mexico
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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