Federal Prison Time for MN Woman Who Ripped Off Homeless Charity
Minneapolis, MN (KROC-AM News) - A former manager for a Minnesota nonprofit organization is headed to federal prison.
A statement issued by the US Attorney for Minnesota says 49-year-old Clarissa Combs has been given a nearly 6-year prison sentence for conspiring to commit wire fraud and making a false statement. The Brooklyn Park woman was accused of orchestrating a scheme to fraudulently obtain assistance payments that were supposed to be used to provide housing and other services to homeless people.
“Ms. Combs orchestrated a years-long fraud scheme that diverted hundreds of thousands of dollars from some of the most vulnerable members of society, including individuals and families in need of housing. I applaud the work of our investigative partners in bringing this conspiracy to justice,” said U.S. Attorney Erica H. MacDonald.
Federal prosecutors say Combs was a program manager for the nonprofit organization and recruited coworkers, along with family and friends, to pose as landlords and homeless clients in order to fraudulently collect almost $685,000 in assistance payments. Court records indicate the fraud scheme was active from April 2012 into February 2019.
In addition to the prison time, Combs has been ordered to pay over $684,000 in restitution. The 11 other defendants in the case received sentences that range from two years on probation to 24 months in prison.