Federal prosecutors have charged a Minneapolis nonprofit operator, alleging he took part in a grant fraud scheme that caused more than $1 million in losses to government agencies and private funders.
A grand jury returned an indictment alleging the operation relied on falsified grant applications, fabricated progress reports, and inflated claims about youth programming that never took place.
The allegations focused on work done through Encouraging Leaders, a Minneapolis nonprofit, during a period between December 2021 and October 2022. Prosecutors say money awarded to the organization for community programs was instead diverted for personal use by those running the scheme…