United States Attorney's Office District of Connecticut
Press Release

EXECUTIVE DIRECTOR OF NEW HAVEN NONPROFIT ADMITS EMBEZZLING CITY HOUSING AUTHORITY FUNDS

Kevin J. O’Connor, United States Attorney for the District of Connecticut, today announced that BARBARA RAWLS-IVY, age 43, of 481 Bellevue Road, New Haven, waived indictment and pleaded guilty today before United States District Judge Janet C. Hall in Bridgeport to embezzling funds from an agency receiving federal funds.

According to documents filed with the Court, RAWLS-IVY, a Member of the New Haven Board of Alderman, was employed as the Executive Director of the Alliance for Strong Communities (“Alliance”) from 2000 to 2003. Alliance was a not-for-profit corporation created by the Board of Commissioners of the Housing Authority of the City of New Haven (“HANH”) to provide certain social services to HANH public housing residents. Alliance employed approximately five to six persons, including the Executive Director.

From, 2001 through 2003, HANH applied for and received federal grants from the United States Department of Housing and Urban Development (“HUD”) for the purpose of providing social services to residents of public housing in New Haven. These grants were provided through the Public Housing Drug Elimination Program (“PHDEP”), a federal grant program, and other federal grant programs. The purpose of the PHDEP grant was to reduce illegal drug use through education, law enforcement, and community development activities. HANH directed most of its PHDEP grant funds to Alliance, and Alliance was authorized to use these funds to make disbursements to vendors and service providers that provided goods and services to or for the benefit of the residents of public housing in New Haven. Alliance was also authorized to use these funds to pay employee salaries and for operating expenses incurred by Alliance. Pursuant to federal regulations and the terms of the PHDEP grant, Alliance and HANH were required to account for all funds received through the program and to maintain records accurately reflecting the disposition of all funds received through the federal program.

In pleading guilty, RAWLS-IVY admitted that, beginning in May 2001 and continuing through April 2003, embezzled funds received by Alliance through PHDEP and other federal programs and maintained in the Alliance checking account at New Haven Savings Bank by drawing checks on the Alliance checking account, made payable to cash, and presenting the checks for payment at banks in and around New Haven. RAWLS-IVY would then retain the cash for her own use. In this manner, RAWLS-IVY unlawfully obtained funds on 39 occasions and in the total amount of $49,059.

RAWLS-IVY also admitted that when she was asked by HANH in 2003 to provide records and documents that would reflect the disposition of the funds drawn from the Alliance checking account at New Haven Savings Bank, she presented HANH’s attorney with invoices, receipts, bank checks, and other documents purporting to reflect that the funds had been used to pay vendors and service providers for goods and services provided to or for the benefit of residents of public housing in New Haven, and for legitimate operating expenses actually incurred by Alliance. However, these invoices, receipts, bank checks, and other documents were false, fictitious, and fraudulent.

“Employees of nonprofit agencies who steal federal funds intended for important social programs will be vigorously prosecuted by this Office,” U.S. Attorney O’Connor stated.

Judge Hall has scheduled sentencing for December 4, 2006, at which time RAWLS-IVY faces a maximum term of imprisonment of 10 years and a fine of up to $250,000. As part of the plea agreement, RAWLS-IVY must pay restitution to the Department of Housing and Urban Development for the money she fraudulently obtained, which amounts to $49,059.

This case was investigated by Special Agents of the Department of Housing and Urban Development, Office of Inspector General, and detectives of the New Haven Police Department. The case is being prosecuted by Assistant United States Attorney John A. Marrella.

CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
thomas.carson@usdoj.gov