Not-for-profit executive charged in six-year theft scheme
NEW YORK – A nonprofit executive was arrested and accused of pocketing taxpayer dollars intended for public services and capital improvements in New York City. A multi-agency joint investigation, including NYC DOI and two federal agencies, exposed the theft of approximately $373,000 in public funds provided by New York State, the New York City Council, and federal earmark grants. The arrest of Dorothy Ogundu was announced on Thursday by Comptroller Thomas DiNapoli, Attorney General Eric Schneiderman and New York City Department of Investigation (NYC DOI) Commissioner Rose Gill Hearn
According to the indictment, Ogundu received two types of government grants for Angeldocs: program grants to support Angeldocs programs and capital grants to improve the Angeldocs facility. To obtain payment on the program grants Angeldocs received, Ogundu falsely claimed that she spent grant funds on expenses related to various Angeldocs programs, primarily rental space for the programs. The indictment alleges that Ogundu diverted nearly all of the program grant funds to pay the mortgage and utilities on a commercial building she owned through a holding company, instead of using the building for the programs she promised to provide.
To obtain payment on the capital grants Angeldocs received, Ogundu claimed that she was building a state-of-the-art demonstration kitchen and making other capital improvements to a building that she falsely claimed was used by Angeldocs. Instead, Ogundu allegedly received kickbacks on the kitchen project from a contractor and diverted other capital grant funds to pay the mortgage on her building and other personal expenses.
As a result of the scheme, Ogundu stole approximately $373,000 in government grants: approximately $91,000 from the City of New York, approximately $87,000 from the State of New York and approximately $195,000 from the United States
http://www.empirestatenews.net/News2013/20131206-2.htm