Keith Ellison Sues Charity Leaders Over Alleged $6.5M Theft, Money Meant For Community Fueled Luxury Life

Author: Qoo Media

Minnesota Attorney General Keith Ellison has filed a civil lawsuit against a violence-prevention charity that prosecutors say collapsed after leaders allegedly misused $6.5 million in charitable money. The case targets We Push for Peace and its former directors, Trahern Pollard and Jaclyn McGuigan, over claims that funds meant for community outreach were diverted into personal spending and private businesses.

The complaint says the nonprofit, once tied to lucrative community violence-interruption work, was undermined by “rampant abuse” and self-dealing. Instead of supporting public safety efforts, officials allege the organization became a vehicle for luxury purchases, debt payments and business support.

Allegations of personal spending and business support

According to the lawsuit, Pollard personally pocketed more than $6 million of the diverted funds. Prosecutors say the money paid for trips to Las Vegas, luxury vehicles, large shopping sprees at a Harley Davidson showroom and spa stores, along with other personal expenses.

The complaint also alleges that Pollard used nonprofit funds to pay child support and settle a personal tax bill with the IRS. In addition, investigators say charitable money was used to subsidize his private businesses, including a used car dealership and a liquor store.

McGuigan, who served as treasurer, is accused of transferring a recurring $1,000 per week from nonprofit accounts into her personal account. Prosecutors also say she took thousands more in government grant money by labeling it as “administrative” expenses.

Nonprofit unable to respond when called on

The lawsuit says the organization had held major contracts for community outreach and violence prevention, but later became unable to carry out its mission. Prosecutors pointed to a request from the City of Minneapolis during Operation Metro Surge, a Homeland Security enforcement effort in Minnesota, when the nonprofit was described as “utterly incapable” of responding.

Ellison said the alleged conduct deprived the community of money that should have gone to public service. “Instead of helping the community, they helped themselves to millions of dollars that should have gone into the community,” he said in a statement.

Questions over false claims and new entities

As investigators moved in, Pollard allegedly tried to justify missing money with false statements made under penalty of perjury. The complaint says he wrongly described a child support payment as “nonprofit overhead” and claimed a $35,000 payout to personal friends was “Chicago payroll.”

Prosecutors also allege that Pollard quickly created a fake “for-profit arm” of the charity after the attorney general’s office started asking questions. They say he then formed another private company, “Change Makers,” and steered remaining revenue there.

Court documents further claim that lucrative community liaison contracts, including one with Whole Foods, were moved away from the nonprofit and into Pollard’s newly created company. The filing portrays the scheme as an effort to drain the organization while disguising how the money was being used.

Broader fallout for Minnesota fraud enforcement

The case adds to growing scrutiny of fraud allegations involving Minnesota organizations that received public and charitable dollars. Prosecutors argue that the collapse of We Push for Peace shows how quickly a nonprofit can lose its mission when internal controls fail and leaders act for personal gain.

The civil suit seeks to hold the former directors accountable for the alleged misuse of funds and the damage done to the charity’s work. For state investigators, the issue now centers on recovering money and documenting how a group created to reduce violence instead became, according to the complaint, a source of private enrichment.

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