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Fraudulent Block Grant Claims

In an October 25 letter, San Diego's city auditor confirmed allegations that non-profit Alliance For African Assistance, working with the Economic Development Division, knowingly submitted a false claim for more than $20,000 in Community Development Block Grants. The investigation began after an anonymous tip was left on the city's fraud hotline.

"The complaint alleged that the organization submitted the request for work to be done knowing that the work had already been completed. We concluded that the allegation was SUBSTANTIATED (emphasis theirs)," read the October 25 letter addressed to Beth Murray, director of the city's Economic Development Division.

According to the block grant contract, projects must be approved before work begins in order to qualify for reimbursement.

To make matters worse, the investigation found that the non-profit submitted false bids in order to fulfill the three-bid-requirement on the application. And, to make matters even worse, the audit found a potential conflict of interest between an executive from the non-profit and the contractor who was awarded the bid.

"This matter will be referred to law enforcement for potential criminal prosecution for fraud and falsification of [block grant] reimbursement documents," read the letter.

"We recommend the Economic Development Division issue a demand letter for return of the [block grant] funds that were paid to the non-profit organization for work that appears to have been completed before the reimbursement agreement was authorized."

Beth Murray director of the city's Economic Development Division failed to respond to requests for more information in time for publication.

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In an October 25 letter, San Diego's city auditor confirmed allegations that non-profit Alliance For African Assistance, working with the Economic Development Division, knowingly submitted a false claim for more than $20,000 in Community Development Block Grants. The investigation began after an anonymous tip was left on the city's fraud hotline.

"The complaint alleged that the organization submitted the request for work to be done knowing that the work had already been completed. We concluded that the allegation was SUBSTANTIATED (emphasis theirs)," read the October 25 letter addressed to Beth Murray, director of the city's Economic Development Division.

According to the block grant contract, projects must be approved before work begins in order to qualify for reimbursement.

To make matters worse, the investigation found that the non-profit submitted false bids in order to fulfill the three-bid-requirement on the application. And, to make matters even worse, the audit found a potential conflict of interest between an executive from the non-profit and the contractor who was awarded the bid.

"This matter will be referred to law enforcement for potential criminal prosecution for fraud and falsification of [block grant] reimbursement documents," read the letter.

"We recommend the Economic Development Division issue a demand letter for return of the [block grant] funds that were paid to the non-profit organization for work that appears to have been completed before the reimbursement agreement was authorized."

Beth Murray director of the city's Economic Development Division failed to respond to requests for more information in time for publication.

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4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
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