FORMER HEAD OF HOMELESS SHELTER INDICTED FOR
STEALING NEARLY $1.5 MILLION FROM THE NON-PROFIT ORGANizATION
Defendant Also
Allegedly Lied Under Oath to Conceal His Self-Dealing
BOSTON – The former executive director of Casa Nueva Vida (CNV), a
publicly funded non-profit homeless shelter with locations in Boston and
Lawrence, has been indicted in connection with stealing nearly $1.5 million
from the organization and lying under oath to conceal his self-dealing,
Attorney General Maura Healey announced today.
An investigation was initiated by
the Massachusetts Office of the Inspector General (OIG) in response to an
anonymous tip. These criminal charges are a result of a joint investigation
conducted by the AG’s Office and the OIG, with assistance from Massachusetts
State Police assigned to the AG’s Office.
CNV, headquartered in Jamaica
Plain, houses over 150 families at 14 locations in Boston and Lawrence. As
CNV’s Executive Director, Duran essentially had complete control of CNV’s $7
million budget, directed procurement and site selections, and managed facility
maintenance and staffing across all locations.
The investigation revealed that
Duran allegedly used this power to lease four of his privately owned properties
and one owned by a relative to CNV as shelter locations, hiding his interests
in the transactions through use of limited liability companies. On behalf of
CNV, Duran allegedly signed four annual disclosure forms under oath, attesting
falsely that the organization, among other things, was not a party to any
transaction in which any of its officers, directors, or trustees had a material
financial interest. The forms were submitted to the AG’s Non-Profit and Public
Charities Division.
The investigation further revealed
three different fraudulent financial schemes that Duran allegedly used to steal
from CNV.
From 2014 to 2021, the AG’s Office
alleges that Duran skimmed rent money paid by CNV for a shelter site in
Lawrence by using a shell company he set up as a middleman. Authorities allege
that Duran made inflated rent payments from CNV through the shell company to
the owners of the property and siphoned off more than $1.1 million for his
personal use.
The AG’s investigation also revealed
that between 2012 and 2020, Duran allegedly created fraudulent invoices and
contracts to obtain checks made out to three different vendors for work they
never performed. The named vendors would cash the checks with Duran present,
and provide the cash directly to him. Duran allegedly stole $242,012 from CNV
in these fraudulent vendor payments for purported services including
renovations, lead abatement, and asbestos abatement.
The AG’s
Office further alleges that between 2014 and 2019, Duran stole approximately
$140,831 from CNV by depositing directly into his own business bank account
paychecks issued to a seasonal maintenance employee for CNV who was in Puerto
Rico when the paychecks were issued.
These charges
are allegations, and the defendant is presumed innocent until proven guilty.
CNV fully cooperated and assisted with the AG’s investigation.
This criminal matter is being prosecuted by Assistant Attorney General Mindy
Klenoff and Chief Trial Counsel James O’Brien, both of AG Healey’s White Collar
and Public Integrity Division, and Victim Witness Advocate Lia Panetta, with
assistance from Massachusetts State Police assigned to the AG’s Office, and
Senior Investigators Jack Meyers and Will Bradford from OIG.
沒有留言:
發佈留言