Sarah Mitchell
Catholic Charities, a nonprofit organization, has been under investigation for financial fraud in several states across the US. The investigations revealed that employees and former employees of the charity had engaged in unauthorized use of funds, falsification of records, and other fraudulent activities. In one case, Catholic Charities of Southern Nevada agreed to pay over $200,000 to resolve claims of fraudulent billing for community service grants. In another instance, former employees of Catholic Charities in Milwaukee were found to have stolen approximately $1.7 million through a years-long scheme involving fake invoices and vendors. The organization has taken steps to address the fraud, including conducting internal investigations, making leadership changes, and improving internal controls.
| Characteristics | Values |
|---|---|
| Location | Las Vegas, Nevada |
| Amount Involved | $206,368.35 |
| Year | 2014, 2015, 2016, 2018, 2020, 2023, 2024, 2025 |
| People Involved | Employees, former employees |
| Action Taken | Terminated employees, cooperated with investigation, paid settlement amount, hired interim finance leader, changed auditing firms, improved internal processes |
| Impact | No impact on services provided by Catholic Charities |
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What You'll Learn
- Catholic Charities of Southern Nevada paid $206,000 to settle a federal fraud investigation
- The fraud involved community service grants for Foster Grandparent and Senior Companion programs
- Catholic Charities discovered the fraud, fired the employees involved, and cooperated with the investigation
- Catholic Charities of Milwaukee says former employees stole at least $1.7 million in a years-long scheme
- The scheme involved creating fake invoices and paying vendors and others with fraudulent checks
Catholic Charities of Southern Nevada paid $206,000 to settle a federal fraud investigation
Catholic Charities of Southern Nevada has agreed to pay more than $206,000 to settle a federal fraud investigation. The investigation focused on community service grants for Foster Grandparent and Senior Companion programs in 2014 and 2015. The administrators of the charity voluntarily reported that Corporation for National and Community Service grants had been improperly used to pay stipends for hours never worked, violated program requirements, or were inflated, according to U.S. attorneys Nicholas Trutanich and William McSwain.
The settlement was reached before criminal charges were filed, and the organization did not admit wrongdoing. The organization fired the employees who perpetrated the fraud and cooperated in an investigation of grant disbursements. Catholic Charities of Southern Nevada feeds the hungry, provides shelter for the homeless, and supports families and seniors in need of assistance.
U.S. Attorney Trutanich stated that the settlement is a reminder that everyone receiving federal grant funds must adhere to grant compliance requirements and self-report misuse. CNCS's Inspector General Deborah J. Jeffrey praised Catholic Charities for acting responsibly, promptly reporting the misconduct, and cooperating actively with the investigation. She added that as a result, Catholic Charities was spared substantial penalties and fines.
The investigation was conducted jointly by the United States Attorney's Offices for the District of Nevada and the Eastern District of Pennsylvania with the Corporation for National and Community Service Office of Inspector General. Assistant United States Attorneys Troy Flake, Paul W. Kaufman, and Veronica Finkelstein handled the investigation and settlement. This case was initiated as a part of the U.S. Attorney's Office for the Eastern District of Pennsylvania's Affirmative Civil Enforcement Strike Force focus on grant fraud.
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The fraud involved community service grants for Foster Grandparent and Senior Companion programs
Catholic Charities of Southern Nevada has agreed to pay more than $206,000 to settle a federal fraud investigation. The investigation focused on community service grants for the Foster Grandparent and Senior Companion programs in 2014 and 2015. The fraud involved the improper use of Corporation for National and Community Service grants. This included paying stipends for hours that were never worked, violating program requirements, and inflating stipend amounts.
U.S. Attorneys Nicholas Trutanich and William McSwain stated that Catholic Charities administrators voluntarily reported the fraud and cooperated with the investigation. The organization fired the employees who perpetrated the fraud and ensured that no current employees were involved or aware of the scheme. Catholic Charities has been credited with feeding the hungry, sheltering the homeless, and supporting families and seniors in need in Las Vegas. The settlement was reached before criminal charges were filed, and there was no admission of wrongdoing or determination of liability by the organization.
The investigation revealed that employees had falsified records for hourly stipends and directed recipients to do the same. This misuse of grant funds was voluntarily disclosed by Catholic Charities to a Corporation for National and Community Service hotline. The organization has emphasized its commitment to adhering to grant compliance requirements and self-reporting misuse. They have also taken steps to prevent similar incidents in the future, such as conducting internal control assessments and hiring an interim finance leader with a background in nonprofits and internal controls.
In addition to the community service grants fraud, Catholic Charities has also reported an alleged fraud scheme involving housing rental assistance programs. The total amount lost in this scheme is expected to be less than $750,000. Five people, including at least one employee of the organization, face federal charges in this scheme, which occurred from 2012 through early 2017. Catholic Charities has maintained its housing rental assistance programs throughout the investigation, ensuring that individuals in need continue to receive support.
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Catholic Charities discovered the fraud, fired the employees involved, and cooperated with the investigation
Catholic Charities of Southern Nevada has been at the centre of several fraud investigations. In one instance, the organisation discovered that its employees had perpetrated fraud by falsifying records for hourly stipends paid to volunteers and directing recipients to falsify records. The fraud focused on community service grants for Foster Grandparent and Senior Companion programs in 2014 and 2015. The organisation fired the employees involved and cooperated with the investigation, which was conducted by the U.S. Attorney's Office for the Eastern District of Pennsylvania and the District of Nevada.
In another case, Catholic Charities reported an alleged fraud scheme in which people posed as landlords renting to homeless people, receiving checks from the nonprofit and splitting the proceeds with at least one employee of the organisation. Catholic Charities notified authorities in Hennepin and Ramsey counties about the misdirection of grant funds in early 2017. The organisation maintained its housing rental assistance programs throughout the investigation to ensure that those in need continued to receive support.
In a separate incident, Catholic Charities of Milwaukee discovered that former employees had stolen at least $1.7 million in a years-long scheme. The fraud involved the creation of fake invoices, vendor names, and services to facilitate unauthorised use of funds for personal benefit. The organisation conducted internal investigations, which indicated that four employees were involved, two of whom were still employed by Catholic Charities at the time the scheme was discovered. Catholic Charities fired the employees who were still working for the organisation and cooperated with law enforcement's investigation.
In each of these instances, Catholic Charities discovered the fraud, took swift action to address it, and cooperated with the relevant investigations. The organisation has made changes to prevent similar incidents from occurring in the future, including hiring an interim finance leader with expertise in nonprofits and internal controls, conducting an internal control assessment, and changing auditing firms.
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$36.5 $60
Catholic Charities of Milwaukee says former employees stole at least $1.7 million in a years-long scheme
Milwaukee social services agency Catholic Charities has fired employees who allegedly stole at least $1.7 million in a years-long scheme. The Very Rev. David Reith, who leads Milwaukee's Catholic Charities as vicar, made the announcement via email.
Reith wrote that certain employees "engaged in unauthorized use of funds for their and others' personal benefit." Internal investigations indicate that four employees were involved: two of them were working for Catholic Charities when the scheme was discovered, and two were former employees. The employees were administrative staff members and were not affiliated with a specific program.
The fraud dates back to 2016 and was most active in fiscal years 2023 and 2024, with anticipated losses of approximately $1.7 million. The group's then finance director, according to search warrants, created fake invoices, vendor names, and services to pay six others. Court documents also state that the former finance director fabricated "vendors" and paid them with official checks from Catholic Charities.
Catholic Charities said it made several changes after discovering the alleged scheme. They hired an interim finance leader with a background in nonprofits and internal controls, conducted an internal control assessment, and changed auditing firms. The organization also stated that no programs were affected by the financial loss, and they continue to serve a similar number of clients.
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The scheme involved creating fake invoices and paying vendors and others with fraudulent checks
Catholic Charities of Southern Nevada has agreed to pay over $206,000 to settle a federal fraud investigation. The fraud involved the misuse of grants for community service programs in 2014 and 2015. The organization fired the employees responsible and cooperated with the investigation.
In a separate incident, Catholic Charities reported an alleged fraud scheme that occurred from 2012 to 2017. The scheme involved people posing as landlords renting to homeless individuals and redirecting grant funds for their own gain. Five people, including at least one employee, were charged in the scheme, which resulted in a loss of less than $750,000.
In another instance of fraud, Catholic Charities of the Archdiocese of Milwaukee sued its former employee, Brandi Ellis, and the accounting firm Baker Tilly, for their alleged involvement in a years-long scheme involving credit card fraud and fake invoices. Ellis, who held various financial roles within the organization, allegedly paid false invoices to vendors with whom she had personal or professional connections. The lawsuit seeks damages from both Ellis and the accounting firm, which failed to identify the fraudulent activity.
The scheme involved creating fake invoices and paying vendors with fraudulent checks. This type of fraud, known as invoice fraud, targets the accounts payable process within an organization. It involves creating entirely fake invoices or altering genuine ones. The perpetrators may intercept mailed checks or online payments, charge more than the agreed-upon amount, or bill for more items than delivered. They may also request payment in advance and disappear once the payment is made.
Invoice fraud has several warning signs, including inconsistencies in vendor details, receiving multiple invoices with similar details, and invoices with round figures without itemized breakdowns. It can result in financial loss, damaged vendor relationships, legal repercussions, and a tarnished reputation for the affected organization.
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Frequently asked questions
Yes, Catholic Charities is under investigation for financial fraud in multiple locations.
In the case of Catholic Charities of Southern Nevada, the charity agreed to pay $206,368.35 to resolve claims arising from its administration of community service grants. In Milwaukee, former employees of Catholic Charities allegedly stole at least $1.7 million.
In the Nevada case, employees of Catholic Charities falsified records for hourly stipends paid to volunteers and directed recipients to falsify records. In the Milwaukee case, the finance director fabricated vendors and paid them with official checks, receiving kickbacks.
Catholic Charities has cooperated with investigations and taken steps to prevent future fraud, including hiring an interim finance leader with a background in nonprofits and internal controls, conducting an internal control assessment, and changing auditing firms.
In the Nevada case, the employees who perpetrated the fraud were terminated, but no criminal charges were filed. In the Milwaukee case, federal investigators are now in control of the case, but no charges have been filed yet.
