Charity in Minnesota Files for Bankruptcy Amid Misuse of Funds

A Minnesota charity focused on “violence disruption” has filed for bankruptcy following allegations that its leaders misused $6.5 million in charitable donations to fund extravagant lifestyles and personal liquor stores.

On Friday, Minnesota Attorney General Keith Ellison announced his intention to file a civil lawsuit against the nonprofit We Push for Peace, along with its former directors, Trahern Pollard and Jaclyn McGuigan.

The charity had established significant contracts for community support and violence prevention. However, prosecutors claim it was plagued by “rampant abuse” and self-dealing.

According to the legal complaint, Pollard is accused of personally taking over $6 million in misappropriated charity funds. Instead of aiding the community, it appears that the funds financed his lavish lifestyle—think trips to Las Vegas, luxury cars, and sizable expenditures at Harley-Davidson dealerships and spa stores.

Additionally, Pollard allegedly utilized the charity’s resources to cover child support payments, resolve personal tax issues with the IRS, and obtain subsidies for private businesses like a used car dealership and a liquor store.

McGuigan, the charity’s financial director, is said to have transferred $1,000 weekly from the nonprofit’s funds to her personal accounts and stole thousands from government grants under the guise of “administrative” expenses.

Ellison stated, “Instead of helping the community, they made millions for themselves that should have been donated to the community.”

Prosecutors noted that the once-flourishing organization was unable to respond effectively when the city of Minneapolis requested assistance during a large-scale security operation, referred to as Operation Metro Surge.

It gets even murkier. When confronted by state investigators, Pollard reportedly submitted false statements under penalty of perjury, insisting that his child support payments were “non-commercial expenses” and that a $35,000 payment to a personal friend was merely “Chicago’s salary.”

Furthermore, prosecutors allege Pollard quickly established a fake “for-profit arm” of the charity shortly after inquiries began, ostensibly to explain the missing funds. He also created a new for-profit entity called Changemakers, which was supposedly set up to siphon off the charity’s remaining profits and redirect lucrative liaison contracts, including one with Whole Foods, away from the nonprofit.