Mr Americana, Overpasses News Desk
November 16th, 2017
Imagine that. Liberals helping Muslim terrorists resettle in the USA are embroiled in a corruption scandal.
Democrats will of course, find some other fake scandal to misdirect from this, but that’s their mode of operation.
Meanwhile, your tax dollars have been used to enrich corrupt executives all in the name of importing terrorists to the United States.
Breitbart News revealed a blockbuster report that financial mismanagement, fraud, and harassment are so widespread at Lutheran Immigration and Refugee Service (LIRS), one of the country’s largest refugee resettlement agencies, that the board has called for an external investigation of CEO Linda Hartke.
LIRS is one of the nine top voluntary agencies (VOLAGs) in the refugee resettlement industry that collectively receives more than $1 billion each year from the federal government to resettle refugees across the United States.
An internal email obtained by Breitbart News confirms the source’s claim of an external investigation at LIRS.
“I will also likely ask the Board of Directors to table the CEO Review until we have the report of the investigation,” LIRS Board Chairman Michael Rinehart said of CEO Linda Hartke in an email sent on September 13, 2017, to Evelyn Soto, named to the board in 2017 as a representative of the Evangelical Lutheran Church in America [ELCA], and Evan Moilan, the board member who chairs the audit committee.
Rinehart wrote in a follow-up email on September 14, 2017, “The Executive Committee convened and agreed to an investigation. I have spoken to Linda. The investigation team has formed. They will meet next week in St. Louis. I have the names of three law firms with whom to talk. Things are moving fast.”
Rinehart wrote in an email the following day, September 15, 2017:
She knows there’s going to be an independent investigation. A committee. Legal firm help. She knows it concerns Cecilia [Hoyer, the former Chief Human Resources Officer who resigned September 15] and the audit, as well as allegations of a pervasive atmosphere of harassment, bullying, and squelching of those raising the issues.
The source for this story claims to be a former high level LIRS employee. Breitbart News believes that claim to be true based on additional evidence the source provided.
The source also provided Breitbart News with detailed information about the internal operations of LIRS that the source says explains the need for an external investigation.
“The issues related to Lutheran Immigration and Refugee Service (LIaRS) are widespread but are rooted in the main areas of financial mismanagement and the incompetence of leadership,” the source who is familiar with the operations of the refugee resettlement industry tells Breitbart News.
[Note: The source and several other critics refer to the Lutheran Immigration and Refugee Service as “LIaRS.” Breitbart News uses the more commonly used shortened form of Lutheran Immigration and Refugee Service, “LIRS.”]
“LIaRS is essentially a U.S. government contractor whose 2016 record revenue totaled nearly $70 million of which approximately 95 percent came from the government through refugee resettlement and children’s services grants, as well as refugee travel loan collections. The balance of the revenue comes through charitable donations as an IRS authorized 501c3 organization from individuals, corporations and foundations, as well as Lutheran church body support,” the source says.
(1) The source cites financial mismanagement at LIRS, due, in part to “inappropriately charging an Indirect Cost Recovery rate to entire Federal grants, most of which are passed through in sub-awards to other organizations.”
(2) “In the past three years alone, LIaRS has had significant audit findings in their required A-133 annual audits,” but the organization has failed to address the financial irregularities discovered by these independent audits,”
(3.) “Wasteful spending. There is a recent history of huge losses being taken on IT systems spending at LIaRS including in 2016 a write off of $149,172 from a one-year-old purchase of a Luminate software program,”
(4. ) “LIaRS built and manages a database of refugees being resettled in the U.S. called IRIS and quietly ‘licenses’ this out to at least four other agencies (IRC, HIAS, CWS, and EMM) on a fee for service basis. The revenue to LIaRS from this arrangement brings in an estimated $500,000 which is NOT reported to the IRS as Unrelated Business Income as required,” the source alleges, calling this concealment of taxable income.
(5.) “Timesheet fraud – this is a big one, as it is criminal to fraudulently submit timesheets to the USG as a grant recipient,”
(6.) “Grant budget fraud – LIaRS regularly submits expenses against USG approved budgets for headquarters’ expenses that are not approved,”
(7.) “Large severance and settlement payouts to avoid public and Board reporting” are another problem,
Whether the allegations this source made are borne out by the internal LIRS investigation and whether any criminal or civil actions will result remain to be seen.
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