The FBI and the Internal Revenue Service are investigating Community Action of Minneapolis, the defunct nonprofit organization that allegedly misspent hundreds of thousands of dollars in taxpayer money.
The revelation of the investigations was disclosed in a recent court filing by the organization's court-appointed receiver, Michael Knight. Knight was hired by the state to assess the full scope of the organization's mismanagement after a state audit revealed CAM's board and CEO Bill Davis used taxpayer money for cruises, a personal car loan and trips.
"There are ongoing investigations by the FBI, the IRS and the [Department of Commerce] that are draining time and resources from what's left of CAM," Knight wrote.
The documents, first obtained by Minnesota Public Radio, also detail more allegations of misspending not unearthed in the state audit. Those include senior management using CAM funds to pay for medical bills and personal expenses of their friends and close friends of the senior management getting paid as contractors without giving proof they completed the work. Knight noted that these are allegations that need further substantiation.
Davis could not immediately be reached for comment.