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Showing posts with label fraud. Show all posts
Showing posts with label fraud. Show all posts

Friday, June 26, 2009

Former Telfair Sheriff To Prison For Three Years

For the third time a sheriff from Telfair County is headed to prison. Jim Williamson was sentenced to three years behind bars Thursday after pleading guilty to fraud. Following the sentencing he was taken into custody by the U.S. Marshals Service.

According to court testimony Williams collected fines that were never paid to the county’s probate court and kept $5,000 seized in a traffic stop. He was facing up to 20 years.

This is the third time a sheriff from Telfair County has gone to prison. In 1994 former Sheriff Ronnie Walker was sentenced to ten years for protecting marijuana growers. Walker's uncle and predecessor, Jack Walker, was also sentenced on racketeering charges while sheriff in Telfair County.

Monday, June 22, 2009

Foundation Manager Admits Fraud

A former accounting manager of the Historic Savannah Foundation has pleaded guilty to bank fraud in federal court. The plea by James Walter Boston of Savannah was announced Monday by Edmund A. Booth Jr., U.S. attorney for the Southern District of Georgia. Prosecutors charged 53-year-old Boston in March, accusing him for embezzling $74,000 from the nonprofit foundation last year. A grand jury indicted Boston on 59 counts, but he pleaded guilty to only one count of bank fraud Friday. Boston will be sentenced later in U.S. District Court. Booth said he faces a maximum penalty of 30 years in prison, $1 million in fines and five years of supervised release.

(Associated Press)

Sunday, March 8, 2009

FBI Raid on Food Charity Raises Questions


The FBI last month raided the headquarters of Angel Food Ministries in Monroe, Ga. Earlier lawsuits allege founders paid selves, sons excessive amounts. (Photo: John Bazemore / AP)

For more than a decade, Angel Food Ministries seemed like a godsend for families who purchased its low-cost food boxes and the churches that shared millions in revenue for distributing the goods.

It became an economic juggernaut in the faith community, employing hundreds, feeding thousands a month and pouring $19 million into its network of more than 5,000 host churches in 35 states.

Now, lawsuits coupled with an FBI raid at the group's headquarters has raised accusations of financial mismanagement at the nonprofit. The raid and ensuing FBI investigation have left congregations and church leaders weighing whether to cut their ties to the high-profile charity after the reported disclosure that six-figure salaries were paid to its founders.

"We get signed up and I start hearing this," said the Rev. Chad Massey, whose Unadilla First Baptist Church in central Georgia planned to place its first Angel Food order this month. "It's kind of hard to know what to do."
FBI officials haven't disclosed the nature of the investigation surrounding the ministry.

Angel Food has acknowledged that a grand jury investigation is looking into what it called "alleged financial irregularities" involving unspecified individuals — but not the ministry itself.

Meanwhile, Angel Food Ministries board members and former employees have filed lawsuits accusing Angel Food leadership of using the non-denominational nonprofit as a moneymaking venture.

The Rev. Joseph Wingo and wife Linda founded the ministry in 1994 to help 34 families hurt by plant closings in the manufacturing town of Monroe, about 45 miles east of Atlanta.

Since then, Angel Food Ministries has grown to hundreds of workers supplying food for anti-poverty programs at more than 5,000 churches spanning several denominations. There are 473 distribution centers listed in Georgia and more than 1,400 concentrated in Texas, Missouri, Tennessee and Pennsylvania.

All told, the ministry says it serves more than 500,000 families a month. It has no plans to interrupt food delivery.

Families typically order multi-meal boxes of meatballs, ham and other staples from monthly menus, spending roughly $30 for an estimated $65 worth of groceries, Angel Food says. Later, they collect boxes at churches that are rewarded with at least $1 for every box delivered.

At Ebenezer United Methodist Church in Conyers, administrative assistant Glenda Evans said leaders are sticking by Angel Food. "Hopefully it gets worked out," Evans said.

In 2006, the ministry reported revenue of $96 million dollars and $17 million in expenses. Tax records from that year show the Wingos and two of their sons earned a combined total in excess of $2.1 million for leading the ministry, up from just less than a combined $323,000 a year earlier.

Their combined salaries dipped to $501,472 in 2007, records showed.

Wingo did not respond to repeated AP requests to be interviewed.

In December, the salaries prompted a national Christian charity watchdog group to flag Angel Food as one of 30 ministries donors should avoid.
"One family for one year making ... more than the president of the United States of America is just kind of outrageous," said Rodney Pitzer, a top official at Wall Watchers. "That should be enough for donors to be concerned."
Two Angel Food board members alleged in a lawsuit last month that the Wingos enriched themselves by at least $2.7 million and sought to bar the Wingos from their Monroe headquarters. The board members accused the Wingos of directing $600,000 from Angel Food to their church as a "housing allowance."

In a settlement reached behind closed doors Friday, the Wingos agreed to an audit and to stopping questionable financial practices — like using corporate credit cards for personal expenses — in lieu of being barred from the premises, according to Thomas Rogers, an attorney representing the board members.

Attorneys representing the Wingos would not reveal further details of the settlement, and the Wingos themselves declined to comment.

A statement on Angel Food's Web site called the lawsuit an effort "by two directors who are interested in removing the founders of the ministry — Pastors Joe and Linda Wingo — only to install themselves in the founders place. This is a power grab."

In an earlier statement, Angel Food portrayed the FBI's Feb. 11 search as part of an "investigation of an individual or individuals connected to the organization, and not regarding the ministry itself."

In disputing the suit, Angel Food said it has been "a model corporate citizen," donating $5.2 million to more than 5,000 communities in 2008.

Luke Erickson, a pastor at Mountain Christian Church near Baltimore, Md., said church leaders like himself received an explanation from the ministry for the high salaries.
"They've invested a lot in it ... there was some kind of compensation given back to them by Angel Food and it was reflected in a large salary in one year," Erickson said.
Finances of prominent ministries have come under scrutiny of late, including a Senate probe begun last year of claims of extravagant spending by some leaders of Christian broadcast ministries nationwide.

The FBI involvement in the Angel Food case could imply far more than just overpaid staff, said Dean Zerbe, former senior counsel with the U.S. Senate Finance Committee.
Though not involved with the Angel Food case, Zerbe said, "If you have ... the FBI knocking on your door of a charity, you've got issues beyond just paying a fellow too much."
FBI officials had no comment Wednesday, and no charges have been filed.
In Georgia, Donna Foster attends Emmanuel Praise — the Wingos' church — and her son works at Angel Food. Recently, "Pastor Joe found out I was unemployed and he sent me a box of food."
She blamed honest mistakes for any perceived financial mix-ups.
"There are some people you can tell if they're faking it," Foster said. "You can tell that these people are real."
(AP)

Friday, October 17, 2008

Where is the Fraud Happening?

A survey conducted by GPB of 134 election offices across the state finds no cases of registration or early voting fraud.

The findings come after several high profile allegations were made suggesting some counties were seeing widespread attempts by partisans and community groups, such as ACORN, to conduct elections fraud. There were also reports on rural AM and FM talk radio stations that organized efforts to register dead voters were taking place.

GPB found no evidence this is occurring.

Several election officials in a handful of counties have reported irregularities to the Secretary of State’s office. However, only thirty two ballots are in question, according to the information provided to GPB, and all of the cases have been resolved without charges.

Fulton County and Richmond County officials did provide exact numbers to GPB, but both election offices report no instances of voter registration or elections fraud.

A spokesperson at the Secretary of State’s office also indicated investigators are looking into allegations of registering people in jails. However, GPB could not independently verify the investigation, and the spokesperson would not disclose where the investigation is taking place.

All participants reported the elections process is moving smoothly, and that early voting turnout is high.

24 counties did not participate in the survey. All were rural counties. Seventeen offices could not be reached. One county office declined to participate. Six more listed non-working telephone numbers.

While almost all of the election officials say they have heard of the voting and registration fraud allegations, not one confirmed it had taken place in their counties. This was a self reporting survey however, and is dependant on the honesty of each county official.

For a copy of the survey, email jsepulvado@gpb.org .

Friday, July 25, 2008

Insurance agent arrested on fraud charges

Insurance Commissioner John W. Oxendine announced on Friday that a Gwinnett County insurance agent has been arrested on insurance fraud charges.

The suspect, Lonnie Robinson, 59, of Flowery Branch, allegedly forged the signatures of two elderly women, a 74, and a 90-year-old on applications for Medicare Advantage policies.

“I have no tolerance for criminals who attempt to defraud elderly victims like this,” Oxendine said, and cautioned Georgians to be wary of rip-off artists when contacted about switching to a Medicare drug plan.
Robinson has been charged with two counts of insurance fraud, according to a statement from Oxendine's office.

All of the approved plans are available at www.medicare.gov or by calling 1-800-MEDICARE (1-800-633-4227).

Friday, June 20, 2008

Georgia 6th in the nation for fraudulent mortgages

Officials say Georgia has dropped from tops in the country in mortgage fraud to number six but remains a hotbed for fraudulent housing loans.

The U.S. attorney and head of the FBI division in Atlanta discussed the trends at a news conference Thursday as officials announced a nationwide crackdown in which 406 people have been charged since March 1, including seven in Atlanta on Wednesday.

The FBI estimates $1 billion in losses due to fraud related to the crackdown labeled "Operation Malicious Mortgage."

Greg Jones, special agent in charge of the FBI in Atlanta, said the bureau has arrested 60 people in Georgia over the past four years, involving millions of dollars in losses to lenders.

Tuesday, April 29, 2008

Exec guilty of Medicaid fraud

A former executive was found guilty of Medicare fraud yesterday. Angela Isley of Atlanta stole more than 600 thousand dollars in state funds and more than 360 thousand from the medical supply company Orthoscript.

Officials say Isley assigned incorrect product codes to items at the Alpharetta-based company in order to receive higher payments from Medicare. She also used company checks to pay personal credit card bills.

Isley faces a maximum sentence of 40 years in prison and hefty fines for health care fraud, mail fraud and money laundering. She will be sentenced in July.

Tuesday, April 22, 2008

GA Tech employees investigated for fraud

At least one of two Georgia Tech professors being investigated for fraud and theft was warned by his boss months ago that he was in danger of violating university policy.

Francois Sainfort and his wife, Julie Jacko, are being investigated by the state attorney general's office after the university turned over documents alleging the duo continued to collect paychecks from Georgia Tech after accepting jobs at the University of Minnesota.

University officials say they have identified nearly $100,000 in questionable spending by the duo so far.

Friday, February 22, 2008

State DOT employee arrested on fraud charges

A Georgia Department of Transportation employee is one of six arrested on fraud charges. The Georgia Bureau of Investigation says 21-year-old Dnez Bracy used identities of 55 people who bought permits from the DOT to steal 20-thousand dollars. Bracy was fired from her job as a clerk in the DOT's permits office, where she had worked since April of last year.

Tuesday, February 12, 2008

Tech employee investigated for misuse of grant money

Federal agents have searched the home of a former Georgia Tech employee who is accused of racking up more than $316,000 in personal charges on her state credit card.

Federal documents say Donna Gamble used grant money over five years from the National Science Foundation to buy more than 3,800 items including a personal watercraft and a wide-screen television.

Gamble has NOT been charged with a crime.

The search came amid increased scrutiny of the use of so-called p-cards and reports of misuse.

State workers use the charge cards to make work-related purchases and the bills are paid by the worker's agency.

GPB News Team: