Anchorage city commissioner accused of fraudulently obtaining $1.6 million in COVID-19 relief funds for his charity
Sept. 30—This article was produced in partnership with ProPublica's Local Reporting Network. An Anchorage city commissioner and her husband, Rosalina Mwega, have been charged with fraudulently obtaining $1.6 million in COVID-19 relief funds for their charity. The charges allege the couple of purchasing cryptocurrency and using the money personally with the intention of helping people find housing and treat addiction. On September 19, a federal grand jury indicted MweGA on five felony charges, including major fraud, wire fraud and money laundering. The couple were given one of the city’s largest awards under the American Rescue Plan Act despite earlier fraud allegations. Mayor Dave Bronson appointed Mwegas to the commissions in 2022, and the executive director of the Equal Rights Commission said Thursday morning that Mweaga would remain a commissioner. MWEga's service is subject to official review by the Ethics Board. The matter is still under consideration by the Board.
Publié : il y a 2 ans par dans Finance
Sept. 30—This article was produced in partnership with ProPublica’s Local Reporting Network.
An Anchorage city commissioner and her husband have been accused of fraudulently obtaining $1.6 million in COVID-19 recovery funds for their charity. Charges filed in federal court in Anchorage accuse the couple of purchasing cryptocurrency and using the money personally with the intention of helping people find housing and treat addiction.
On September 19, a federal grand jury indicted Rosalina Mwega, 41, and Esau Fulema Jr., 44, on five felony charges, including major fraud, wire fraud and money laundering. The charges come after the Anchorage Daily News and ProPublica first reported in May that the Anchorage Assembly had given the couple one of the city’s largest awards under the American Rescue Plan Act despite earlier fraud allegations.
Court records show Mwega was arrested on Wednesday. The US Attorney’s Office announced the charges publicly that afternoon.
As of Thursday morning, the city’s website still listed Mwega as a member of the Anchorage Equal Rights Commission, which is tasked with investigating discrimination allegations, as well as the city Housing and Homelessness Commission.
Anchorage Mayor Dave Bronson appointed Mwega to the commissions in 2022. The executive director of the Equal Rights Commission said Thursday morning that Mwega would remain a commissioner. Spokespeople for Bronson and the Housing and Homelessness Commission did not immediately respond to questions. A spokesman for Bronson previously said the mayor “does not have the unilateral ability to remove members from commissions.” The chair of the Homelessness Commission said she remains a “member in good standing” on that panel representing nonprofits, and attended its most recent meeting earlier this month.
Bronson spokeswoman Veronica Hoxie said Thursday that the mayor had asked for Mwega’s resignation in May when he was being investigated. Mwega refused, Hoxie said.
“The mayor cannot unilaterally remove any member of the board or commission in accordance with the municipal code,” Hoxie wrote in an email. “However, Ms. Mwega’s service is subject to official review by the Ethics Board. The Board is addressing the issue and took initial public testimony in an executive session during its meeting on September 22. The matter is still under consideration by the Board.”
[Earlier coverage: Anchorage gave her a $1.6 million grant despite prior fraud allegations. Now she’s under investigation again.]
Mwayega and Fulema remained in custody as of Thursday morning and could not immediately be reached for comment. When a reporter visited Mwega’s office on May 18, an employee said she was not available but was scheduled to speak with investigators that afternoon. He did not respond to subsequent emails and phone calls seeking comment.
Fulema also did not respond to emails, phone messages or interview requests sent to his home at that time.
In May 2021, the Anchorage Assembly awarded $1.6 million to Mwega and Fulema’s charity, House of Transformation, even though the state had permanently barred the couple from serving as Medicaid providers in 2015.
The state Division of Senior and Disability Services cited four reasons for the ban: violating background check requirements, submitting billing claims without sufficient documentation, offering discounts for Medicaid referrals, and submitting claims without supporting documentation.
As a result, Mwega’s business can no longer bill any federal health care programs, including Medicare, Medicaid, and Denali KidCare, for its services. Mwega appealed the ban in 2016, arguing that the penalty was too severe and relied on hearsay, but a state Superior Court judge upheld the sentence.
The allegations relate to how he obtained the 2021 grant, how he used the money and alleged subsequent efforts to obtain additional grants from the city.
He is accused of lying to federal, state and city officials by claiming that he met legal requirements to receive an ARPA grant from the city. The charges state that the couple directed a grant writer to submit proposals that misrepresented the operating expenses and officers and directors of their various charities.
The charges say the couple transferred $297,250 of the grant to their personal checking account, using the money as collateral to obtain a personal loan. In turn, the loan funds were used to purchase $191,000 in cryptocurrency and pay taxes owed by one of his businesses.
According to the allegations, an additional $402,000 in grant money was used to finance a for-profit beauty salon. The charges state that as part of his grant agreement, he promised to use approximately $500,000 to make a down payment on two Anchorage properties that could have been used for housing services. According to the allegations, they did not do so and failed to disclose that Fulema already owned 50% of a property.
House of Transformation and various limited liability companies that use the same office address and the same name, or similar names, are among a group of non-profits and businesses created in recent years.
The House of Transformation was one of the largest recipients in the first round of ARPA grant awards from the city. It received more than city agencies such as the fire and police departments, and it received the 13th largest grant out of 64 awarded.
This story has been updated to correct the name of the mayor’s spokesperson.
Les sujets: Coronavirus, Cryptocurrency, Alaska, Anchorage