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St. Louis Non-Profit Executive Indicted in $2 Million Fraud Scheme

A St. Louis non-profit executive has been indicted for allegedly defrauding the state of Missouri out of over $2 million intended for feeding low-income children. Cymone McClellan, 31, faces four felony counts of wire fraud, with potential penalties including up to 20 years in prison.

Key Takeaways

Indicted Individual: Cymone McClellan, 31, founder of Sister of Lavender Rose (S.O.L.R.)
Charges: Four felony counts of wire fraud
Alleged Fraud Amount: Over $2 million
Duration of Fraud: January 2019 to June 2022
Potential Penalties: Up to 20 years in prison and a $250,000 fine per count

Overview of the Allegations

According to the indictment, McClellan operated Sister of Lavender Rose, a non-profit organization aimed at providing meals to low-income families. From January 2019 to June 2022, she allegedly submitted false meal reimbursement claims to the Missouri Department of Health and Senior Services (DHSS).

The claims stated that S.O.L.R. served 860,876 meals to children, but investigations revealed that only enough food and milk was purchased to serve fewer than a quarter of that number.

Fraudulent Activities

The indictment outlines several fraudulent activities conducted by McClellan:

False Claims: Submitted reimbursement claims for meals that were never served.
Bogus Documentation: Provided fake sign-in sheets to DHSS, falsely claiming to have recorded attendance at food distribution sites.
Misuse of Funds: Allegedly used $60,000 of the funds for a down payment on a house in Collinsville, Illinois, and purchased multiple vehicles, including high-end models.

Notable Findings

Address Misrepresentation: One of the addresses used for food preparation was linked to Elmo’s Love Lounge, an adult nightclub in University City.
Asset Seizure: The indictment seeks the forfeiture of real estate and vehicles purchased with the misappropriated funds, including:
- 2021 Chevrolet Traverse
- 2012 Chevrolet Express G3500 van
- 2020 Mercedes-Benz Metris van
- 2012 Ford E350 box truck
- 2018 Lexus RX SUV

Current Status

As of now, McClellan has not been arrested, but a warrant has been issued for her arrest. If convicted, she faces significant prison time and hefty fines, raising questions about accountability in non-profit organizations and the safeguarding of public funds intended for vulnerable populations.

Conclusion

This case highlights the critical need for oversight in non-profit operations, especially those dealing with public funds. The alleged actions of McClellan not only undermine the mission of her organization but also jeopardize the welfare of the children it was meant to serve. The legal proceedings will be closely monitored as they unfold, shedding light on the broader implications for non-profits in the region.