Accused fraudster of Kansas DCF contractor renounces claim to seized bank funds
William Byrd Whymark and Robert Nelson Smith are accused of conspiring to defraud Saint Francis Ministries of more than $10 million. Both defendants have indicated they will change their not guilty pleas.
Smith was the president and CEO of the Salina-based Saint Francis, a faith-based nonprofit that contracts with the Kansas Department for Children and Families. He was also an ordained priest with the Episcopal Church. Whymark was the chief information officer.
Smith and Whymark were indicted in U.S. District Court in Topeka in November 2022 on 20 total charges of money laundering, wire fraud and conspiracy to commit wire fraud. The Federal Bureau of Investigation detailed the case in a civil asset forfeiture case filed in August 2022.
Former Saint Francis leader renounces claim to bank accounts
In the civil asset forfeiture case, the federal government is seeking about $703,000 in three seized bank accounts connected to Whymark.
The civil case was filed before the criminal case, but it had been paused since May 2023. The stay was due to "concerns" about discovery and the Fifth Amendment, according to a filing by assistant U.S. attorney Scott Anderson.
In that March 26 federal court filing requesting the stay remain in place, the U.S. Attorney's Office said "plea negotiations are ongoing, but they have not reached an agreement yet."
The stay was lifted on July 21 by Magistrate Judge Gwynne Birzer.
That came after Whymark, Jessica Whymark and WMK Technology Corp. on June 6 withdrew their claims and disclaimed any interest in the contents of the bank accounts. Then the U.S. Attorney's Office on July 18 requested the stay be lifted.
More: DCF contractor Saint Francis Ministries defrauded of $10.7 million by former IT chief, feds allege
Defendants are scheduled to change pleas
In the criminal case, both Whymark and Smith pleaded not guilty. Now, that may be changing.
Whymark on April 30 notified the court that he intends to change his plea, which was followed by Smith's notice on May 27.
The change of plea hearing is scheduled for Sept. 3 in Topeka with District Judge Toby Crouse.
If convicted, they could face decades in prison and millions of dollars in fines.
More: Former leaders of DCF contractor Saint Francis charged with fraud, money laundering
Indictment details alleged scheme to defraud Saint Francis Ministries
The grand jury indictment alleged that Whymark and Smith "conspired and engage in a scheme to defraud Saint Francis Ministries."
Whymark allegedly swindled Saint Francis out of more than $10 million through submitting and approving false invoices. A July 2022 affidavit by special agent Kevin Mills, a financial and white collar crime investigator with the FBI's Topeka office, said the fraud totaled about $10.7 million.
Despite his $164,000 salary as the organization's top IT officer, Whymark outsourced work to his New York-based company, WMK Research, then further outsourced it to subcontractors in India, QubeRoot Analytics and Pinnacle Seven Technologies. He then submitted fraudulent invoices with inflated costs for the work performed by the subcontractors he wasn't supposed to use, the indictment alleged.
"Whymark used the fraudulently obtained funds from SFM toward the purchase of an approximate four-million-dollar home in Armonk, New York, luxury vehicles, jewelry, and cash withdrawals," the indictment alleged.
Meanwhile, Smith allegedly received a $50,000 kickback for approving the high-dollar invoices and also improperly used Saint Francis credit cards for personal expenses. That included "cash withdrawals, clothing and jewelry purchases, and expenses associated with travel for Smith and his family members."
Jason Alatidd is a Statehouse reporter for The Topeka Capital-Journal. He can be reached by email at jalatidd@gannett.com. Follow him on X @Jason_Alatidd.
This article originally appeared on Topeka Capital-Journal: Kansas federal court has update on Saint Francis Ministries fraud case
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