Minnesota AG Sues Violence Prevention Charity Leaders for Diverting $6.5 Million

A Minnesota charity aimed at interrupting violence has collapsed after its leaders allegedly diverted $6.5 million in funds to support lavish lifestyles and a private liquor store.

Minnesota Attorney General Keith Ellison announced a civil lawsuit Friday against the nonprofit We Push for Peace and its former directors, Trahern Pollard and Jaclyn McGuigan.

The organization, which had lucrative contracts for community outreach and violence prevention, failed due to rampant abuse and self-dealing, according to prosecutors.

Pollard took more than $6 million from the diverted funds, the complaint states. The money paid for trips to Las Vegas, luxury vehicles and big shopping sprees at a Harley Davidson showroom and spa stores.

Pollard also used nonprofit money to cover child support payments, settle a personal tax bill with the IRS and support his private businesses, including a used car dealership and liquor store.

McGuigan, the charity's former treasurer, transferred $1,000 a week from nonprofit funds to her personal account. She also took thousands more from government grants labeled as administrative expenses.

"Instead of helping the community, they helped themselves to millions of dollars that should have gone into the community," Ellison said in a statement.

When Minneapolis asked the nonprofit for help during Operation Metro Surge, a major Homeland Security enforcement action, the group could not respond because it was broke.

As state investigators closed in, Pollard submitted false statements under penalty of perjury. He called a child support payment nonprofit overhead and described a $35,000 payout to personal friends as Chicago payroll.

To explain the missing money, Pollard created a fake for-profit arm of the charity days after the attorney general's office started asking questions.

He also formed a new for-profit company called Change Makers. That firm took the nonprofit's remaining revenue and community liaison contracts, including one with Whole Foods, according to court documents.