FBI raids 2 El Dorado nonprofits

Offices of 2nd Chance @ Life, development group searched

FBI agents talk outside 2nd Chance @ Life, an El Dorado organization upon which the federal investigators served a search warrant Tuesday. Another search warrant was served at the Southwestern Economic and Development Association in El Dorado.
FBI agents talk outside 2nd Chance @ Life, an El Dorado organization upon which the federal investigators served a search warrant Tuesday. Another search warrant was served at the Southwestern Economic and Development Association in El Dorado.

The FBI served search warrants and seized property Tuesday at 2nd Chance @ Life and the Southwestern Economic and Development Association in El Dorado.

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FBI spokesman Deb Green said she could not confirm any additional information, such as whether the raids on the organizations were connected.

Domanique Robinson, business manager of 2nd Chance @ Life, said FBI officials took only paperwork, including invoices and bank statements, from the nonprofit group that mentors and feeds young people.

Robinson said the FBI is investigating whether money is being spent on what the organization's officials have said it is.

"Every T is crossed, every i is dotted," Robinson said, adding that he believed widespread knowledge of the fraud investigation would hurt the group's work.

"This whole situation is going to destroy the livelihood of hundreds of people," he said.

Robinson said 2nd Chance @ Life, 1514 Junction City Road in El Dorado, operates in 17 school districts, employs dozens of people and serves about 2,000 children each day.

This summer, the group received a $30,000 federal grant administered through the state's Youth Services Division for a peer-based mentoring program in El Dorado.

Nonprofits file financial statements -- called Form 990s -- with the IRS each year. On 2nd Chance @ Life's Form 990 for 2012, the organization reported receiving $6,060 in grant money and $192,535.26 in revenue that included government fees and contracts.

That same year, the organization reported making $125,735.26 in payments to independent contractors, which was the most recent data immediately available.

When asked which contractors the nonprofit works with, Robinson said he did not know.

Phone numbers listed for Southwestern Economic and Development Association were either outdated or disconnected Tuesday.

Daryell Howell, mayor of Strong, was listed on the nonprofit development association's IRS Form 990 as a board member in 2003, the most recent available. When reached Tuesday, Howell said he has never been a board member for the organization and had never met the other people listed as board members.

Howell's correct home address was listed on the form, but his name was spelled incorrectly as "Darrell."

The nonprofit has been registered with the Arkansas secretary of state's office since 1976 and is listed on the website as having "good standing."

The Southwestern Economic and Development Association's Form 990 describes the organization as being involved in anti-tobacco initiatives in rural areas of Union County.

GuideStar Nonprofit Directory notes that the organization "has not appeared in IRS records for a number of months and may no longer exist. This organization's exempt status was automatically revoked by the IRS for failure to file a Form 990, 990-EZ, 990-N, or 990-PF for 3 consecutive years. Further investigation and due diligence are warranted."

Ronald Murphy, listed as the executive director of the development nonprofit in the Form 990, did not return a message left for him at his home Tuesday, although the person who took the message said he was still involved with the organization.

Last year, according to a classified advertisement in the El Dorado News-Times, the city gave 30 days notice to the owner of the organization's 1221 S. Jackson St. address that the building would be condemned and declared a public nuisance. The declaration means the structure would eventually be torn down.

Information for this article was contributed by Chad Day of the Arkansas Democrat-Gazette.

Metro on 09/03/2014

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