By Rebecca R. Ruiz, Nicholas Kulish and Kim Barker
The New York Times
The Justice Department is investigating possible misuse of federal money by Southwest Key Programs, the nation’s largest operator of shelters for migrant children, according to two people familiar with the matter.
The inquiry could upend shelter care for thousands of children, escalating government scrutiny of the nonprofit even as it remains central to the Trump administration’s immigration agenda. The charity operates 24 shelters to house children who were separated from their parents at the border or arrived on their own.
The United States attorney’s office for the Western District of Texas is examining the finances of Southwest Key, based in Austin, and whether it misappropriated government money, according to the people, who were not authorized to speak publicly about the inquiry. Prosecutors on the case are working with the Federal Bureau of Investigation.
The inquiry comes after a New York Times report this month detailing possible financial improprieties by Southwest Key, which has collected $1.7 billion in federal grants in the past decade, including $626 million in the last year alone.
The Justice Department is investigating possible misuse of federal money by Southwest Key Programs, the nation’s largest operator of shelters for migrant children, according to two people familiar with the matter.
The inquiry could upend shelter care for thousands of children, escalating government scrutiny of the nonprofit even as it remains central to the Trump administration’s immigration agenda. The charity operates 24 shelters to house children who were separated from their parents at the border or arrived on their own.
The United States attorney’s office for the Western District of Texas is examining the finances of Southwest Key, based in Austin, and whether it misappropriated government money, according to the people, who were not authorized to speak publicly about the inquiry. Prosecutors on the case are working with the Federal Bureau of Investigation.
The inquiry comes after a New York Times report this month detailing possible financial improprieties by Southwest Key, which has collected $1.7 billion in federal grants in the past decade, including $626 million in the last year alone.
The nonprofit has engaged in potential self-dealing with its top executives, stockpiled tens of millions of taxpayer dollars and lent out millions for real estate purchases, acting more like a bank than a traditional charity, according to records and interviews. It has funneled government money through a web of for-profit companies, converting public funds into private money for the organization, which has paid top executives millions of dollars.
In response to The Times’s report, a spokesman for Southwest Key, Jeff Eller, acknowledged management mistakes but said there had been no criminal intent by the charity’s officials or “a desire to game the system.” Southwest Key also said it would commission an internal investigation.
Mr. Eller said on Thursday that the charity had not yet been contacted by the F.B.I. or the United States attorney’s office, but that it had “a policy of working with any and all investigations.”
Southwest Key, which became a focal point during the Trump administration’s decision to separate migrant children from their families this year, now houses up to 5,000 children in its facilities. One of them is a converted Walmart Supercenter in Brownsville, Tex., that can hold 1,400 children, drawing complaints that it was warehousing them.
In response to The Times’s report, a spokesman for Southwest Key, Jeff Eller, acknowledged management mistakes but said there had been no criminal intent by the charity’s officials or “a desire to game the system.” Southwest Key also said it would commission an internal investigation.
Mr. Eller said on Thursday that the charity had not yet been contacted by the F.B.I. or the United States attorney’s office, but that it had “a policy of working with any and all investigations.”
Southwest Key, which became a focal point during the Trump administration’s decision to separate migrant children from their families this year, now houses up to 5,000 children in its facilities. One of them is a converted Walmart Supercenter in Brownsville, Tex., that can hold 1,400 children, drawing complaints that it was warehousing them.
For rest of story, click on link: https://www.nytimes.com/2018/12/20/us/southwest-key-migrant-shelters.html
16 comments:
Juan Dont cry for me Argentina, if the USA govt wants to hire contractors to do this kind of work, well then there is no one to blame, Dr Juan Sanchez and Southwest keys are providing a service, thats it. Our parents always told us to go to school and get an education. Dr. J Sanchez did just that. Kudos to him.
Time for these people to join Armando Villalobos in jail 50 years for stealing meat, these people should get 100 years.
Anyone could have seen this coming but who cares? What about IES same thing! No Smith or Jones here, but they must have been behind it right?
Yes, he got an education but he is still a RAT
Dec 21 2:18 what part of the DOJ investigation did you not comprehend? Unfortunately Dr Sanchez greed to defraud the U.S. government will harm 1000 of his employees when the U.S. government will indict and close him down as they did to his once partner Dr Gallegos. It's greed
That company that makes clothes for the government should also be investigated the manager of that company is making over one million in salary and was sued by disabled employees WHERE'S THE FEDS!!!
Talk about a bridge to nowhere these people should be invesagted fully and every one charged to the full extent of the law
Juan how many organizations does this guy own in town—- ??
Thank you FBI for busting these Mexican crooks.
What' there to "pour" over? There's thievery involved, period! Or, is the Feds going to pick and choose who they're going to investigate and indict, just like the Limas case?
The FBI, not should but must come down here and investigate all those hillbillies wearing suits (disguise)
Deberian de ver como los clinicians estan bien cansados por tantos estudiantes que cada uno tiene. No se diga de Los leads cada dia les agregan mas trabajo, no los dejan respirar ahi es un caps. Lo peor es que ahi entre ellos mismos se nombran Apd's loks cuales no estan calificados y por supuesto no tienen la education requerida
He did not pay some scumbag politician his cut, so he dropped the dime on him. Once you pay one scumbag you have to pay them all.
Is that why that clothing company hasn't been busted
Dr Sanchez has admitted to something being wrong and has initiated an internal investigation. He belives his managers might of committed an error. What a crock of shit typical criminal. Both Dr Sanchez and his spouce salaries are 500,000 a year and they claimed to be nonprofit. I see indictments forthcoming.
He is playing dawn of course he knows. De esa manera se hace inocente culpando a su administracion por el MAL manejo de el dinero.
Vieron el reportaje de New York Times. Les recomiendo que lo vean, esta muy interesante.
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