A federal indictment unsealed Wednesday accuses a North Little Rock man of helping steal federal funds designated for feeding poor children, joining three women charged in December.
Christopher Laneal Emmanuel Nichols, 24, is facing 10 counts of wire fraud in connection with a scheme to fraudulently obtain U.S. Department of Agriculture funds.
The USDA funds the Child and Adult Care Feeding Program, a component of which provides free meals to at-risk children during after-school hours. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services.
U.S. Attorney Chris Thyer said Nichols submitted an application to participate in the program as a sponsor, which allowed him to provide meals and be reimbursed based on the number of eligible meals served. The indictment alleges that from August 2013 through July, Nichols fraudulently obtained $333,136.67 through the scheme.
A relative of Nichols worked for the department and approved his application to operate as a sponsor through an organization called A Vision for Success, Thyer said. He noted that the only employees whom Nichols listed on his application were other family members.
Like the three women charged in December, Nichols is accused of falsely representing his average daily attendance and greatly inflating the number of meals provided. The indictment states that Nichols falsely claimed an average of 184 to 275 children received meals through the program at a site at 3100 E. Broadway in North Little Rock, which was the address for an auto repair business. It said that he falsely claimed an average daily attendance of 165 to 202 children at a second site called the Learning Center at 5625 E. Ninth St. in North Little Rock, although no such address exists.
Thyer said that few or no children were fed.
On Dec. 18, Thyer held a news conference to announce the indictments of the three women -- Jacqueline Mills, 39, of Helena-West Helena; Tonique Hatton, 37, of North Little Rock; and Gladys Elise King, 34, of England. Hatton was employed by the department at the time, and King was a former employee.
Thyer described Hatton and King as the "gatekeepers" responsible for ensuring that federal funds for the programs got into the right hands. He said they took bribes of nearly $250,000 in checks from Mills, as well as others who weren't named but were known to a federal grand jury investigating. Thyer said Mills received $2.5 million through the department to feed children in need and transferred nearly $1 million of that money into her personal bank account or other bank accounts controlled by her.
Mills, Hatton and King have been released while awaiting their Aug. 3 jury trial before U.S. District Judge Susan Webber Wright. All three have pleaded innocent.
In announcing the indictment of the three women, Thyer said the investigation was ongoing and that more arrests were possible.
The department said in a news release in December that it had notified federal officials more than a year earlier about possible fraudulent billing by Mills, and it was working with investigators looking into other potentially false claims. The department also said it was in the process of terminating Hatton.
The 76-count indictment naming the three women includes charges of wire fraud, bribery and money laundering.
In a news release announcing Nichols' indictment, Thyer said, "With reportedly over 200,000 children at risk of hunger in Arkansas because they are not getting nutritious food needed to thrive, this indictment is a small step toward ensuring the funding for nutritious feeding programs in Arkansas is actually feeding children."
He said Wednesday that he still expects more indictments as the investigation into the feeding programs in Arkansas continues. He asked that anyone aware of any fraudulent activity regarding the feeding programs contact his office by email at [email protected].
Wire fraud is punishable by up to 20 years in prison, a $250,000 fine or both.
The ongoing investigation is being conducted by the U.S. Secret Service, the FBI, the Internal Revenue Service, the USDA Office of Inspector General and U.S. Marshals Service.
Metro on 02/12/2015