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McGruber [soylentnews.org] writes:

A federal grand jury has indicted Katrin Verclas, age 50, on a charge related to a scheme to defraud the U.S. Department of State of $1.231 million.

Verclas is founder of MobileActive, an organization that would act as “a hub for people around the world who are building tools for mobile phones that make a difference". In 2009, Katrin Verclas became a TED fellow and won a Knight News Challenge grant. In 2010, she became a fellow at the MIT Media Lab. In 2011, she was named one of the “most influential women in technology” by Fast Company. (https://www.thedailybeast.com/feds-tech-darling-katrin-verclas-defrauded-the-us-state-department)

According to the indictment, Verclas, as director of MobileActive Corp, obtained a grant from the U.S. Department of State intended to support and promote U.S. global internet freedom efforts. Verclas represented to the U.S. Department of State that MobileActive was a non-profit organization pursuant to 26 U.S.C. § 501(c)(3) with the legal authority to apply for a grant, and that MobileActive had the financial capability to ensure proper planning, management, and completion of the grant project.

MobileActive was not a 501(c)(3) non-profit organization, and thus, did not have the legal authority to apply for the grant. Verclas spent much of the money from the U.S. Department of State on personal expenses and expenses unrelated to the grant. Verclas caused the U.S. Department of State to transfer $1.222 million into her control.

Verclas faces a maximum sentence of 10 years in prison.

Main Story: https://www.justice.gov/usao-md/pr/german-citizen-indicted-major-fraud-connection-state-department-grant [justice.gov]

Original Submission