Anchorage nonprofit’s use of $750,000 in federal funds investigated

ANCHORAGE, Alaska (KTUU) – The president of an Anchorage nonprofit group is dealing with critical questions on how the group spent a whole bunch of hundreds of {dollars} in federal funds.

The cash was a part of an American Rescue Plan Act grant distributed by the Anchorage Meeting in 2021. The ARPA funds had been supposed to assist communities get well from the consequences of the coronavirus pandemic.

In 2021 the president signed a virtually $2 trillion COVID-19 stimulus bundle designed to assist the nation get again on its toes. It was divided between communities primarily based on inhabitants.

Anchorage obtained greater than $100 million {dollars} to distribute, however, as at all times with applications of this dimension, there are questions on the place that cash goes. The group in query known as Revive Alaska Group Companies (RACS). In 2021, the nonprofit was awarded a grant by the Anchorage Meeting for $750,000 to assist feed needy households in South Anchorage.

Now metropolis officers and federal investigators are wanting into that transaction.

In 2021, RACS was utilizing a big barn in South Anchorage as a makeshift meals pantry on O’Malley Highway. In April of that 12 months, a part of the roof caved in because of the weight of the snow.

That’s when the RACS President Prince Nwankudu publicly requested for funds to assist make repairs. Every week later, Nwankudu went earlier than Anchorage Meeting members to ask for an ARPA grant to assist him do this.

“We’re requesting funding for restore, improve and enlargement of the meals pantry,” Nwankudu stated.

In Could of that 12 months, the federal authorities awarded Anchorage a complete of $103 million {dollars} in ARPA funds. The U.S. Treasury Division set the rules for a way that cash is spent.

Nwankudu quickly utilized for a grant by submitting paperwork requesting $750,000, with the intent to rebuild his meals pantry on O’Malley Highway. Meeting members felt these funds had been nicely fitted to that goal.

“There actually aren’t meals pantry providers obtainable in South Anchorage,” Meeting Vice Chair Christopher Fixed stated.

The Meeting accredited the grant, which required RACS to boost an extra $750,000 in matching funds themselves. However the $750,000 grant was by no means used to rebuild the barn and open one other meals pantry in South Anchorage. As an alternative, the construction was torn down.

“I used to be informed they bought a constructing in Midtown to offer their providers that they’d been awarded to for a South Anchorage undertaking,” Fixed stated. “That was the primary time that I had actual concern that one thing wasn’t proper.”

Fixed then started questioning what occurred to the ARPA grant cash.

Final June, Nwankudu and his govt assistant, Carmen Wanous, spoke to the Meeting, however this time they needed one other grant from town’s second spherical of ARPA funds.

“The quantity we’re requesting now could be $1.6 million,” stated Nwankudu.

Wanous then defined how RACS had already spent the primary $750,000.

“We determined to buy a pre-existing constructing that’s already geared up with a industrial kitchen,” Wanous stated. “We have now proceeded to buy a property for $1.85 million with assist from the $750,000 we received from the ARPA first spherical.”

Meeting member Forrest Dunbar questioned the request.

“I keep in mind we took a tour of this facility that was off of O’Malley,” Dunbar stated.

“That’s proper,” Wanous replied.

“So my understanding is, and I believe on the time you informed us, ‘nicely that is the place it’s going to go,’” Dunbar continued. “So what you’re telling us now could be that, that’s not the place it’s going.”

“The opposite current construction was broken past restore, in line with engineers and, you understand, those that inspected it,” Wanous stated. “In order that has since needed to be torn down.” Wanous stated. “We’ve since bought property on Tudor and McInnes,” Wanous stated.

“So the $750,000, is that going to go to something on, on O’Malley,” Dunbar requested. “I imply that, that was form of the understanding after we appropriated that cash.”

Nwankudu then stepped in to answer.

“The cash that was appropriated was for both constructing or, partly constructing, or relocation,” Nwankudu defined. “And we’re making use of it to relocation as a result of proper now the necessity is there for enlargement.”

RACS expanded by buying a 16,000-square-foot church on MacInnes Road on six and a half acres of land. It’s additionally the place Nwankudu presides over providers.

“We have now church each Sunday and we have now bible research on Wednesdays and we have now prayer conferences on Fridays,” Nwankudu stated.

Information present that one week after asking the Meeting for extra funds, Nwankudu bought the church via his company, GF Heritage, LLC for $1.85 million {dollars}. That was information to meeting members as a result of they are saying the ARPA software they approved said the funds can be used to rebuild the South Anchorage meals pantry.

“It actually, as a member of the Meeting, raises considerations when funds are spent in a fashion not approved beneath regulation,” Fixed stated.

The grant settlement between RACS and town of Anchorage was signed by Nwankudu and former Municipal Supervisor Amy Demboski. We discovered the contract differed from the proposal phrases that the meeting had accredited. It now included an appendix permitting RACS the choice to “relocate” the pantry, which is one thing meeting members say they by no means agreed to.

“It wasn’t approved, it was by no means mentioned in any of the hearings, work classes, committees,” Fixed stated. “By no means was there a dialogue about ‘please purchase us a brand new constructing.’”

Each Fixed and Meeting Chair Suzanne LaFrance need to understand how that new language ended up within the contract.

“Actually that was not a part of what was accredited by the meeting,” LaFrance stated. “I’m hopeful that we’ll, we’ll discover out what occurred.”

Meeting members aren’t the one ones with considerations.

“I’m conscious of an investigation being completed by the U.S. Division of Treasury,” LaFrance stated.

“I did have a dialogue with an inspector from the Division of Treasury, the IRS,” Fixed stated. “There’s undoubtedly curiosity on this transaction and what’s occurred and what’s occurring.”

An investigation into Nwankudu’s background discovered that he has prior legal convictions. In 2012, data present Nwankudu was sentenced to federal jail for a felony he dedicated again in 2007.

In line with the indictment, when Nwankudu was a mortgage dealer in Texas, he submitted a fraudulent mortgage software for a $630,000 dwelling mortgage. Investigators say Nwankudu made a revenue of $71,230.50 in that transaction. Nwankudu was charged with conspiracy to commit mail fraud and data present he plead responsible.

Consequently, a choose ordered him to serve 20 months in federal jail after which be deported to Nigeria. Nonetheless, in 2013, data present Nwankudu efficiently appealed his deportation and was allowed to stay in the USA.

Nwankudu’s employees agreed to an interview final November, inviting us to satisfy with him at their church on McInnes Road. Nwankudu gave a tour of the power, exhibiting us the kitchen and room that’s used as a brief meals pantry. He stated it’s open to the general public on Wednesdays between 11 a.m. to 2 p.m., or by appointment.

“When you’re simply hungry present up, we’ll serve you meals,” Nwankudu stated.

When questioned about his legal historical past, Nwankudu denied doing something deliberately mistaken, then later confessed when proven the paperwork detailing his felony costs.

“I made the error, I allowed it to occur, it was beneath my nostril and I take full duty,” Nwankudu stated. “However that’s not who I’m and that’s not what it’s, is affecting what I’m doing now.”

Nwankudu was then requested why he utilized federal ARPA funds in direction of the acquisition of the church, as an alternative of repairing the South Anchorage facility.

“The roof caved in,” Nwankudu stated. “So we, even after we utilized, I went to the meeting and overtly requested them for the cash for the restore of the meals pantry, then went again and reported to them that the engineers are saying that there isn’t a manner that that meals pantry can be repaired, that we wanted more cash to restore it.”

However meeting members say Nwankudu solely informed them he tore down the South Anchorage meals pantry, after which used ARPA funds in direction of the acquisition of the church, after the very fact. That’s why they plan to research additional.

“The precise report that I can be requesting is an in depth listing of transactions that that $750,000 and the $750,000 in matching funds had been spent on,” Fixed stated.

Fixed says he plans to name for an unbiased audit of all ARPA funds disbursed to Anchorage. Town employed a neighborhood firm known as Denali FSP to supervise how that cash is spent.

On Friday, Alaska’s Information Source obtained paperwork that had been first requested final November, however it’s nonetheless not clear who accredited the ARPA grant settlement between RACS and the municipality which allowed the non-profit group to relocate the meals pantry. Whether or not that’s an acceptable use of the cash is at present being investigated.

Anchorage Mayor Dave Bronson’s workplace informed us he doesn’t get entangled with the grant language since that’s his employees’s duty. He says the ultimate step was when the previous municipal supervisor signed off on it.

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