Falsified Documents Lead to Indictment
A past leader of a Nebraska charitable organization has been sentenced to four months in prison for confessing to submitting false paperwork to obtain government grant money designated for events focused on electronics recycling collection.
In Omaha, Brenda Banks faced legal consequences last summer after admitting guilt to wire fraud. This offense was linked to her involvement in securing grants for Angels on Wheels, a nonprofit organization also located in Omaha. Angels on Wheels oversees the Cross Training Center, a facility dedicated to work experience and vocational training which is “connected to an electronics recycling operation, called Cross Electronic Recycling.”
As outlined in an approved grant application back in 2018, Banks detailed a sequence of typical e-scrap collection gatherings.
“The funds from this grant will be used towards the cost of managing 33 electronic collection events and to process the collected items in a manner that conforms with our zero landfill policy,” she stated.
“The collection events will be open to the public and will be strategically placed in the Omaha metro area and the surrounding areas. We collect out-of-service electronics including computers, consumer electronics, large appliances, automobiles and other out-of-service household or industrial equipment. Personal computers and other items that have useful life are fully refurbished for continued use. Items that do not have any useful life are dismantled by hand and the materials are sorted into like commodities and sold.”
At the heart of the process overseen by the Nebraska Environmental Trust, an agency tasked with managing grants, lay a crucial stipulation: the need for specific documentation to validate expenses and secure reimbursements. An investigation revealed that in pursuit of these grants, Banks resorted to “repeatedly submitted false documents, to include altered check images and fictitious invoices,” a press release by the U.S. Attorney’s Office for the District of Nebraska noted on April 2nd.
“For example, Banks fraudulently altered images of checks by whiting out the names of the individuals or companies that the checks had been paid to and writing names of other entities or organizations,” the attorney’s office reported.
In the end, Banks successfully obtained $220,000 in funding through the grant program.
Banks Enters Into a Plea Deal
In 2022, Banks was charged with various counts of fraud by the U.S. Attorney’s Office following an inquiry conducted by the Federal Bureau of Investigation. Then, last summer, Banks agreed to a plea bargain. She admitted guilt to the fraudulent submission of the Nebraska Environmental Trust application, while the remaining accusations were dismissed.
At the onset of the sentencing proceedings earlier this year, Banks’ legal representation managed to reduce her sentence by highlighting that, despite the fraudulent activities, the intended purpose of the grant money was ultimately fulfilled.
“Although Banks provided some false information, ultimately, the money granted to her was used as intended,” her attorney documented. “Banks applied for grant money to complete recycling projects, the money was provided to complete recycling projects and the recycling projects were completed.”
Banks’ attorney provided various invoices as evidence, demonstrating that Guardian Enterprises and Cross Electronic Recycling were responsible for carrying out recycling services related to the grant. These two entities are affiliated with the nonprofit organization and specialize in electronics recycling.
In addition, Banks’ attorney noted that there were financial documents presented in the legal proceedings to support the provision of recycling services. These records revealed that “over $250,000 dollars was paid directly to ‘Glassico’ by Cross Training Center between 2019 and 2020.” Glassico is a Mexican CRT glass facility.
The lawyer representing Banks then contended that of the grant money Banks had obtained, only $26,500 was misappropriated for purchasing a vehicle and covering personal costs.
In response to the plea, Judge Robert F. Rossiter, Jr. partially approved the request, ultimately ruling on April 2nd that Banks would serve a four-month prison sentence, followed by three years of supervised release and “restitution of $83,000 and a fine of $5,000.”
