In The News:

Native American Connections

 

Phoenix, AZ – A nine-month internal investigation into Native American Connections (NAC), a Phoenix-based nonprofit dedicated to affordable housing and substance abuse treatment, has unveiled serious allegations of grant fraud and executive mismanagement.

 

The Office of Foundation Oversight (OFO) has discovered multiple instances of alleged misappropriation of grant funds and other violations of state and federal regulations. Consequently, an Action Referral Memorandum recommending the suspension and debarment of NAC from future grant opportunities has been submitted to the involved grant agencies, the Internal Revenue Service (IRS), and the Arizona Attorney General’s Office.

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Further allegations include falsifying 990 forms, tax evasion, and failure to disclose assets, which jeopardizes the organization's 501(c)(3) status. The City of Phoenix, along with inspectors general from the U.S. Department of Housing and Urban Development (HUD) and the Department of Health and Human Services, have expressed intentions to launch their own comprehensive investigations based on OFO's referral.  This development raises critical concerns about the trust and integrity of nonprofits serving vulnerable communities.

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The investigation's focus has largely been on NAC’s real estate development projects, including Osborn Pointe in Phoenix and a transitional housing initiative with the city of El Mirage. Bruce Tucker, the lead investigator and former controller for NAC, claims that the organization’s C-Suite executives and Board of Directors have long been aware of these issues but failed to take sufficient action. Tucker states that while NAC’s CEO, Trula Breuninger, initially implemented corrective measures when he raised concerns, she deferred to the demands of the Director of Real Estate Development, Joe Keeper, on more serious issues that indicated possible grant fraud and misappropriation matters. Breuninger terminated Mr. Keeper's employment shortly after OFO's summary report was sent out to affected funding agencies. "It was the correct action to take as Mr. Keeper was involved in most of the alleged violations, but more important, it is an admission of guilt and the first of many steps at accepting responsibility."   

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“While the steps she took to enhance the grant management process were positive, they fell short. They didn’t address past or ongoing fraud. I repeatedly informed her that nonprofits are legally obligated to self-report any grant-related misconduct, but she clearly preferred not to confront the issue,” Tucker said.  

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Transparency and accountability are essential in the nonprofit sector. Funders must ensure that organizations entrusted with public funds operate with integrity and fulfill their commitments to the communities they serve. OFO urges anyone with information regarding such misconduct to report it promptly. It is crucial for the community to stay informed and advocate for ethical practices within nonprofit organizations.

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The public’s support is vital for those dedicated to making a positive impact, while holding accountable those who fail to uphold these essential standards.