The directors of an American nonprofit have been accused of embezzling over $6.5 million in charitable funds to pay for their own lavish lifestyle. Trahern Pollard and Jaclyn McGuigan used funds embezzled from We Push for Peace to bankroll Vegas trips, luxury car purchases and massive shopping sprees.
According to a report in the New York Post, Minnesota Attorney General Keith Ellison announced a civil lawsuit against We Push for Peace and its former directors, Trahern Pollard and Jaclyn McGuigan, on Friday.
Charity funds used for luxury purchases
Prosecutors say that the nonprofit was virtually destroyed by “rampant abuse” and blatant self-dealing.
We Push for Peace reportedly won lucrative contracts for community outreach and violence prevention, but funds earmarked for these initiatives were misused by the charity’s executives.
Trahern Pollard paid for trips to Las Vegas, luxury vehicles and massive shopping sprees at a Harley Davidson showroom and spa stores using the embezzled funds, according to the report.
He also used the Minnesota nonprofit to pay for child support, settle a personal tax bill with the IRS, and funnel money to his private, for-profit businesses. Pollard’s for-profit businesses included a used car dealership and a liquor store.
McGuigan, who served as the treasurer, allegedly transferred $1,000 per week of into her own personal account. Thousands more in government grant funds also went into her pocket — she claimed they were for “administrative” expenses.
State sues directors
{{/usCountry}}McGuigan, who served as the treasurer, allegedly transferred $1,000 per week of into her own personal account. Thousands more in government grant funds also went into her pocket — she claimed they were for “administrative” expenses.
State sues directors
{{/usCountry}}“Instead of helping the community, they helped themselves to millions of dollars that should have gone into the community,” Ellison wrote in a statement.
Prosecutors also pointed out that when the City of Minneapolis sought the nonprofit’s help during Operation Metro Surge — a large Homeland Security enforcement initiative in Minnesota — the organisation, despite once handling millions of dollars, was allegedly “utterly incapable” of responding.
Court documents claim that as investigators began scrutinising the charity’s finances, Pollard filed false statements under penalty of perjury. He allegedly described a child support payment as “nonprofit overhead” and claimed that a $35,000 payment made to personal friends was for “Chicago payroll.”