Scandal funds reaped millions, feds claim

Posted: December 22, 2017 at 1 a.m.

Philadelphia Inquirer/JESSICA GRIFFIN Donald "D.A." Jones exits Federal Court on Oct. 25 after an arraignment on charges he and another strategist conspired to hide a $90,000 payment the congressman made to pay a primary challenger to drop out of a 2012 race in Philadelphia.

A Missouri-based nonprofit agency saw its Medicaid reimbursements increase from $35.1 million in 2011 to $92.8 million in 2016. This was after executives for the nonprofit group embarked on a $1 million scheme to pay for illegal campaign contributions and lobbying with the nonprofit group's money, according to federal court documents.

Related cases

w Donald Andrew “D.A.” Jones, 62, of New Jersey pleaded guilty on Dec. 8 in U.S. District Court in Pennsylvania to arranging to pay $90,000 to get the 2012 primary challenger of U.S. Rep. Bob Brady, D-Penn., to drop out of the race. Jones was a consultant for Brady., the 1st Congressional District representative in Pennsylvania and the ranking Democrat on the Committee on House Administration, which oversees federal elections. The district covers much of central and south Philadelphia.

• Jones also lobbied for Alternative Opportunities, a company whose lobbyist in Arkansas obtained a $400,000 General Improvement Fund grant for a company he founded while using the business address, staff and nonprofit tax status of one of Alternative Opportunities’ businesses to get the grant. Former state Sen. Jon Woods of Springdale is set to go to trial April 9 for a kickback from that project and from grants he and then-state Rep Micah Neal, also of Springdale, steered to Ecclesia College in Springdale. Neal pleaded guilty in the scheme on Jan. 4. Randell Shelton Jr. and Oren Paris III are co-defendants is Woods’ case.

• David Carl Hayes earlier this year pleaded guilty in Missouri to charges including theft from Alternative Opportunities. Hayes was Alternative Opportunities’ coordinator of merger and acquisition activity from 2006-13, according to court documents, and embezzled almost $2 million from Jan. 3, 2011 to March 31, 2014.” Hayes pleaded guilty June 12 and was found dead at his Missouri farm in November in what authorities described as a suicide.

Source: Staff report

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