Latest news with #Geminus
Chicago Tribune
10-07-2025
- Business
- Chicago Tribune
Third woman in Geminus theft case sentenced to probation in federal court
A third woman tied to the Geminus Corporation Emergency Rental Assistance funds theft was given probation, largely because the judge wanted to make a point. By sentencing Chermell Ellis Thursday to probation and restitution of $90,950, U.S. District Court Judge Philip Simon wanted to show that if someone accused cooperates, they too can earn a lesser sentence. Had she not cooperated as she did, it would've been a different story, he said during her sentencing hearing in U.S. District Court in Hammond. 'Had you not cooperated, I'd have sent you to jail,' Simon said. 'But you responded the best way you could, and people will be rewarded if they do that.' In the plea deal she accepted in November, Ellis pleaded guilty to one count of wire fraud and was facing 8 to 14 months in prison, with 1 to 3 years supervised release, according to court documents. Ellis, in her defense, said that getting involved with that scheme was the 'deepest regret of her life.' 'I have no excuse, and I take full responsibility,' a visibly shaken Ellis said. 'I put my daughter in a position she never deserved to be in.' Ellis — along with Valencia Franklin and Gloria White, who were sentenced last month for their roles — was accused of misappropriating $636,000 in Emergency Rental Assistance funds destined to help renters hang on to their residences during the pandemic by creating false landlords to fraudulently request money from the program, according to an independent audit by an Indianapolis accounting firm. Geminus Corp. discovered discrepancies in its records, which led to finding out about the potential fraud in July 2022, according to Bill Trowbridge, president and CEO of Geminus and its umbrella organization, Regional Care Group. The nonprofit service agency based in Merrillville immediately contacted the U.S. Department of the Treasury and fired Franklin, as well as alerted the accounting firm that does its annual audit. The audit, released in January 2023, covered fiscal years ending in June 2021 and 2022. The $636,000 figure is what Geminus 'had strong suspicions' was fraudulent and reported to the feds and the agency's auditors, Trowbridge has said. Geminus received $40 million in federal funding for the Emergency Rental Assistance program as a pass-through agency, distributing the money throughout Lake County during the pandemic. Franklin was sentenced to two years and $352,300 in restitution for her part, while White was given 24 months' probation and $177,800 in restitution, the Post-Tribune previously reported. Each woman's restitution amount will be given to Geminus as a joint and several liability, Simon said.
Chicago Tribune
26-06-2025
- Business
- Chicago Tribune
White receives probation in scheme to defraud rental assistance
A woman who pled guilty in a scheme to defraud the federal rental assistance program of a Merrillville-based not-for-profit agency has received probation. Along with 24 months of probation, Gloria White will be required to repay Geminus Corp. $177,800, United States District Court Judge Philip P. Simon ruled at her Thursday morning sentencing in Hammond. White, 60, who entered a plea in November, initially was facing 21 to 27 months in prison. Simon told White he feels 'like a broken record' in dealing with cases involving public funds because he views them as a 'breach of public trust.' 'During the pandemic, when people were genuinely afraid, Congress finally did something to stem the tide of impending disaster and came up with this construct — rental assistance — to keep people in their homes,' he said. 'I'm really offended by this behavior of people taking advantage of these systems, and I think most fair-minded people feel the same way.' White and fellow employee Valencia Franklin were accused of misappropriating Emergency Rental Assistance funds destined to help renters hang on to their residences during the pandemic by creating false landlords to fraudulently request money from the program, according to an independent audit by an Indianapolis accounting firm. Geminus Corp. discovered discrepancies in its records which led to finding out about the potential fraud in July 2022, according to Bill Trowbridge, president and CEO of Geminus and its umbrella organization, Regional Care Group, the Post-Tribune previously reported. The nonprofit service agency based in Merrillville immediately contacted the U.S. Department of the Treasury and fired Franklin, as well as alerted the accounting firm that does its annual audit. The audit, released in January 2023, covered fiscal years ending in June 2021 and 2022. The $636,000 figure is what Geminus 'had strong suspicions' was fraudulent and reported to the feds and the agency's auditors, Trowbridge said. Geminus received $40 million in federal funding for the Emergency Rental Assistance program as a pass-through agency, distributing the money throughout Lake County during the pandemic. Franklin was sentenced to two years in prison earlier this month. Simon credited White's attorney, Luis Sanchez, for counseling her to 'do the right thing' and cooperating with the U.S. Attorney's office. 'When you're in a hole, you need to stop digging, and you did that,' Simon said. 'You've earned (probation as the sentence) through cooperation. 'You're a lovely woman who made a really bad decision — rarely do I see someone come before me with not so much as a parking ticket — but you do have the burden of being a convicted felon now.' White apologized to Simon, the court, her family, friends, community, and twin sister for her crime.
Chicago Tribune
03-06-2025
- Business
- Chicago Tribune
Former Geminus employee sentenced to two years for stealing federal funds
A former employee of a Merrillville-based not-for-profit service agency was sentenced to two years in prison Tuesday morning after pleading guilty to one count of wire fraud in February. United States District Court Judge Philip P. Simon sentenced Valencia Franklin of Lynwood, Illinois, to 24 months in prison followed by a year of supervised release in the U.S. District Court Northern Indiana in Hammond. Franklin, 52, was also ordered to pay $352,300 in restitution to Geminus Corporation, her former employer. Franklin was accused of misappropriating $636,000 in Emergency Rental Assistance funds destined to help renters hang on to their residences during the pandemic by creating false landlords to fraudulently request money from the program, according to an independent audit by an Indianapolis accounting firm. Geminus Corp. discovered discrepancies in its records which led to finding out about the potential fraud in July 2022, according to Bill Trowbridge, president and CEO of Geminus and its umbrella organization, Regional Care Group. The nonprofit service agency based in Merrillville immediately contacted the U.S. Department of the Treasury and fired Franklin, as well as alerted the accounting firm that does its annual audit. The audit, released in January 2023, covered fiscal years ending in June 2021 and 2022. The $636,000 figure is what Geminus 'had strong suspicions' was fraudulent and reported to the feds and the agency's auditors, Trowbridge said. Geminus received $40 million in federal funding for the Emergency Rental Assistance program as a pass-through agency, distributing the money throughout Lake County during the pandemic. During the often emotional hearing, Franklin's attorney, Adam Sheppard, pointed to the adversity Franklin overcame in her life and the fact that she 'didn't try to shift the blame' of her crime to anyone else as mitigating factors. Originally, sentencing guidelines had Franklin facing between 41 months and 51 months. 'Look at the adversity she's overcome: a teenage pregnancy, but then she got her GED, then her associate's degree, a bachelor's degree, a master's degree and a (certified public accountant) degree,' Sheppard said. 'It was a crime of opportunity and greed, and she spent the money on basic needs. There were no luxury cars; she was supporting family and friends — her youngest son and her ailing mother, for whom she's the primary caregiver. 'She recognizes she's jeopardized her freedom.' Veronica Hill, Franklin's friend since they were in fifth grade, said Franklin has always 'given her all' to make sure everyone else was Ok. 'When we would play ding-dong ditch, Valencia wouldn't play because she was afraid of getting in trouble,' Hill said through tears. 'She has a fear of authority, and she wouldn't do anything to harm the government. It's not who she is.' In her statement to the court, Franklin — who wept through most of it — said she had 'no excuses' for 'the embarrassment she brought to her family and employer.' 'I was tempted by the easy way out. I failed my job, I failed my community,' she said. 'I let down a young, underprivileged lady, and she deserved better. So did everyone else I failed. 'I will carry the weight of that for the rest of my life. I'm not trying to escape punishment, but I'm asking for mercy.' Assistant U.S. Attorney Kevin Wolff agreed the case was sad, but said it was also intentional. 'She did the first one for her son, but then she did it again and again and again. It wasn't a passive scheme,' Wolff said. Simon said he has 'very little concern' that Franklin will ever re-offend, but he had to send a message to the community that stealing from the Federal government will not go unanswered. 'You used family members as props in a jaw-dropping level of criminality,' Simon said. 'And a year after, when you were supposed to send out 1099s for recipients of the money to report it to the IRS, you made efforts that they didn't receive them. You said you're ashamed — well, you ought to be ashamed. 'You were one of the few success stories of the system, and you've thrown it away. But you've totally owned this, which is important for getting it behind you.' Simon gave Franklin until 2 p.m. August 28 to report to prison, and he said he will see to it that she's close enough to family for their support. Franklin will likely receive 54 days of good behavior toward her sentence, meaning she'll serve 85% of her sentence, Sheppard said, after which she'll be moved to a halfway house to complete it. He was pleased with the outcome. 'Judge was very thoughtful with the sentencing, and he was considerate,' Sheppard said. Franklin and her family declined comment through Sheppard.
Chicago Tribune
21-02-2025
- Politics
- Chicago Tribune
Against Trump tidal wave of cuts, Mrvan lends support to Head Start: 'being able to see hope in young children's eyes'
U.S. Rep. Frank Mrvan, D-Highland, said he visited the Geminus Head Start program in Gary Thursday because of the uncertainty it faces as President Trump slashes programs to rein in government spending. When Trump issued an executive order Jan. 27 freezing federal programs, about 57 Head Start programs nationwide couldn't access their funding grants. After a spate of lawsuits and confusion, the White House withdrew the order but some nonprofit groups still said they couldn't access their funding. Head Start was never a target of the funding freeze, federal officials later said. Head Start Geminus Vice President of Early Childhood Services Karen Carradine said it suffered a 'hiccup' but never lost funding. 'In January, we got a little bit of a scare,' she said when funding appeared to disappear. By Feb. 1, though, the program had received its full grant award. She said Head Start programs, which serve children in low-income families from birth to age 5, receive reimbursable grants twice a year. 'That's why today is so important, we want to talk to our policymakers,' said Carradine, a Head Start alum. The program is the largest in Indiana. Last year, Geminus Head Start served 1,672 children in Lake and Porter counties, including 1,123 preschoolers — nearly 10% of the area's preschool-age population. It also opened a new Porter County Early Learning Academy at 370 W. U.S. 6 near South Haven. Officials said more than 90% of students enter kindergarten ready to learn, exceeding the national average of 64% for 3-to-5-year-olds. Success, however, is no guarantee for survival in Trump's administration which has gutted departments and laid off thousands of federal employees from scientists at the National Institutes of Health to rangers at the National Park Service. Mrvan, who sang songs with children along with Gary Mayor Eddie Melton at the St. Mark Early Learning Academy, voiced support for the continuation of the program begun 60 years ago by President Lyndon Johnson. His Democratic party, however, is in the minority in both chambers of Congress. After his tour of classrooms, Mrvan said he's 'able to see hope in young children's eyes. 'I want to make sure that the parents and those that may think they don't have a voice know we will collectively stand up for young children…' Mrvan said. The reason for Trump's torrid push to cut the federal workforce is 'to get to the goal for tax cuts for major corporations,' he said. Mrvan, a member of the House Appropriations Committee, said Head Start is a bipartisan program important to rural communities, as well as urban ones. As the committee begins to craft the federal budget, Mrvan said Head Start should be a priority. Melton said every dollar invested in Head Start translates into a $13 return on investment. Many graduates have higher lifetime earnings and are less dependent on public assistance. 'For a city like Gary, this impact cannot be overstated. We know the success of our children directly influences the success of our city.' Education programs like Head Start help build a strong community, Melton said. 'It breaks cycles held by too many families for too long.' Carradine said Head Start is often misconstrued as a daycare center for toddlers. She said its curriculum is evidence-based and aligned with Indiana standards. 'They are essential learning centers that provide a stable, nurturing environment where young minds can grow and thrive,' she said. 'The impact of Head Start and Early Head Start is profound and far-reaching, and it is imperative that we recognize and support their value.'
