Embezzler Sentenced to Federal Prison

August 31, 2009

A former AmeriCorps director for the City of Meriden, Conn, has been sentenced to six months in Federal prison and ordered to make more than $150,000 in restitution as the result of an investigation by the Office of Inspector General.

The sentencing of Jonathan Holden, 33, of Hopkinton, MA., was announced Aug. 25, 2009, by Nora R. Dannehy, United States Attorney for the District of Connecticut. Holden had earlier pled guilty to one count of theft of public funds. While the director of the Meriden AmeriCorps program from July 2000 to September 2004, Holden embezzled $152,502 from the city.  As part of the embezzlement scheme, Holden caused the city to issue paychecks in the names of others, which he then diverted to himself for his own benefit.

The case was investigated for the OIG by Supervisory Special Agency Robert Holland.

Audit Cites Lapses in Evaluations of New Grantees.

August 20, 2009

The Office of Inspector General (OIG), Corporation for National and Community Service (Corporation), has issued an audit report (09-15) on Financial Management Survey Responses of New Grantees that cites lapses in the Corporation’s evaluation of new applicants for grant funds.

The audit, a follow-up to a 1998 OIG report, found that problems still exist with the way the Corporation determines whether new grantee applicants have the financial systems and expertise to properly handle Federal funds.

Corporation officials generally agreed with the audit’s findings and have begun taking steps to strengthen their oversight of new grantees.

Specifically, the OIG found that the Financial Management Survey (FMS) form used by the Corporation contains information self-reported by grantees and lacks any method for verification of responses. The Corporation’s review process was also cited as needing improvement.

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