Latest news with #SaintFrancisMinistries
Yahoo
2 days ago
- Yahoo
Accused fraudster of Kansas DCF contractor renounces claim to seized bank funds
The federal government is a step closer to getting about $700,000 seized from bank accounts tied to one of the former executives accused of defrauding a Kansas foster care contractor out of more than $10 million. 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@ 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 Solve the daily Crossword
Yahoo
24-04-2025
- Business
- Yahoo
Federal judge denies former foster care leader's request to travel to El Salvador
Saint Francis Ministries in November 2020 severed ties with CEO Robert "Father Bobby" Smith and other leaders following an investigation into financial mismanagement. (Sherman Smith/Kansas Reflector) TOPEKA — A federal judge rejected a former Kansas foster care leader's request to leave the country, even though a Chicago faith leader vouched for him. Robert 'Father Bobby' Smith, who led Saint Francis Ministries from 2014 to 2020, faces federal charges of conspiracy to commit wire fraud, 15 counts of wire fraud, and one count of money laundering. He asked the court last month to travel from his home in Johnson City, Tennessee, to El Salvador so he could visit his ex-wife and attend their daughter's high school graduation. U.S. District Judge Toby Crouse sided with a prosecutor who warned that Smith was a flight risk, based on family connections and the federal government's inability to apprehend him if he stayed in El Salvador. Pastor Corey Brooks, of New Beginnings Church of Chicago, wrote a letter dated April 10 to the judge in support of Smith's request to travel. 'I have every confidence that his intent is to attend the graduation, celebrate his daughter's success, and return to Tennessee,' Brooks wrote. Brooks said he believes so much in Smith that he was willing to travel with him to the graduation. But court records show Crouse denied Smith's request at an April 16 hearing. The judge also set a status conference for April 30. Past court filings showed Smith and co-defendant William Whymark, the former IT director for Saint Francis, are negotiating a plea deal. The two are accused of defrauding Saint Francis, the largest foster care contractor in Kansas, of at least $4.7 million. Saint Francis hired Smith, who had been ordained as an Episcopal priest by the Diocese of Chicago, as president and CEO in 2014. Kansas Reflector first reported on allegations of misconduct by Smith and Whymark shortly after they left Saint Francis in November 2020. Internal and external audits revealed excessive billing for IT services and charges by Smith for lavish personal expenses.
Yahoo
27-02-2025
- Business
- Yahoo
Former leaders of Kansas foster care provider negotiating plea deal in federal fraud case
Former Saint Francis Ministries CEO Robert 'Father Bobby' Smith and William Whymark, who oversaw IT services, have entered into plea negotiations to settle federal charges that involve wire fraud, conspiracy and money laundering, a court filing shows. (Sherman Smith/Kansas Reflector) TOPEKA — Two former leaders of a Kansas foster care provider have entered plea negotiations to avoid trial for allegedly bilking the organization out of millions of dollars, federal court records show. A grand jury indicted former Saint Francis Ministries CEO Robert 'Father Bobby' Smith and William Whymark, the organization's former IT director, in November 2022 on charges of wire fraud, conspiracy, and money laundering with damages totaling at least $4.7 million. A Feb. 25 court filing in the federal case shows 'the parties are presently involved in plea negotiations and anticipate resolving this case without a trial.' The filing asks the court to authorize a presentence investigation report, which a court officer prepares when a defendant pleads guilty in order to help the judge determine the appropriate sentence. The report 'would materially facilitate the parties' ongoing plea negotiations by allowing them to quickly and efficiently identify areas of potential agreement, while simultaneously isolating any disputed loss issues that may truly require litigation,' the joint court filing said. Under the charges included in the indictment, they could face a maximum sentence of 20 years in federal prison, plus fines and restitution. Denny Marlin, spokesman for Saint Francis Ministries, said the organization wouldn't comment 'out of respect for the criminal justice system' and 'to ensure we do not compromise the integrity of the legal process.' 'We look forward to its resolution and remain focused on our mission of providing healing and hope to children and families,' Marlin said. Kansas Reflector first reported on allegations of misconduct by Smith and Whymark shortly after they left Saint Francis Ministries in November 2020. An internal investigation revealed excessive billing for IT services and charges by Smith for lavish personal expenses. In 2022, Saint Francis sued Smith, Whymark and former general counsel David Shaffer, accusing them of operating a scheme to enrich themselves through fraudulent billing. The lawsuit identified Shaffer and Whymark as brothers. The former employees denied the claims, and Smith countersued Saint Francis employees for defamation because of reporting by Kansas Reflector. Saint Francis hired Smith, an Episcopal priest ordained in 2014 by the Diocese of Chicago, as president and CEO in 2014. From 2017 to 2020, according to the state lawsuit, Smith charged $442,276.17 on Saint Francis Ministries credit cards, 'a significant portion of which funded lavish meals, entertainment, travel and gifts for him and his family.' Smith also paid a travel agency $57,125.43, 'a majority of which had no legitimate business purpose or was grossly excessive,' the lawsuit said. Shaffer for at least eight months billed Saint Francis both through his Chicago law firm and in his individual capacity, which the lawsuit characterizes as legal malpractice. From 2015 to 2019, Shaffer billed more than $1 million in legal fees to his law firm, and from 2018 to 2020 an additional $500,000 in payments to himself. Smith approved the 'grossly excessive' invoices, the lawsuit said, including invoices for legal work unrelated to Saint Francis and $4,000 for moving and storage expenses for office furniture at his Chicago law firm. Whymark wasn't qualified to provide IT services, but Smith hired him as chief information officer and signed off on more than $11 million for services provided by Whymark's IT company. The lawsuit said those services were 'grossly deficient and overpriced.' Whymark's company outsourced work to build a content management system that wouldn't function. In the fall of 2019, while Saint Francis was undergoing a financial audit, the system crashed and destroyed financial data. Whymark then wiped the hard drives, according to the lawsuit, and the organization spent an estimated $3.2 million to repair Whymark's IT work. At the time, Saint Francis Ministries was the largest foster care provider in Kansas, serving more than 3,000 foster kids. By January 2020, the IT costs combined with a severely underbid contract to provide foster care services in Nebraska placed Saint Francis in financial peril. The organization survived in part by receiving a $10 million Payment Protection Program loan, which it wasn't eligible for and never repaid, during the COVID-19 pandemic. Last year, the Kansas Department for Children and Families awarded new foster care contracts and replaced Saint Francis as the provider for the Wichita region. Saint Francis continues to provide foster care services for much of central and western Kansas.
Yahoo
27-02-2025
- Business
- Yahoo
Former leaders of Kansas foster care provider negotiating plea deal in federal fraud case
Former Saint Francis Ministries CEO Robert 'Father Bobby' Smith and William Whymark, who oversaw IT services, have entered into plea negotiations to settle federal charges that involve wire fraud, conspiracy and money laundering, a court filing shows. (Sherman Smith/Kansas Reflector) TOPEKA — Two former leaders of a Kansas foster care provider have entered plea negotiations to avoid trial for allegedly bilking the organization out of millions of dollars, federal court records show. A grand jury indicted former Saint Francis Ministries CEO Robert 'Father Bobby' Smith and William Whymark, the organization's former IT director, in November 2022 on charges of wire fraud, conspiracy, and money laundering with damages totaling at least $4.7 million. A Feb. 25 court filing in the federal case shows 'the parties are presently involved in plea negotiations and anticipate resolving this case without a trial.' The filing asks the court to authorize a presentence investigation report, which a court officer prepares when a defendant pleads guilty in order to help the judge determine the appropriate sentence. The report 'would materially facilitate the parties' ongoing plea negotiations by allowing them to quickly and efficiently identify areas of potential agreement, while simultaneously isolating any disputed loss issues that may truly require litigation,' the joint court filing said. Under the charges included in the indictment, they could face a maximum sentence of 20 years in federal prison, plus fines and restitution. Denny Marlin, spokesman for Saint Francis Ministries, said the organization wouldn't comment 'out of respect for the criminal justice system' and 'to ensure we do not compromise the integrity of the legal process.' 'We look forward to its resolution and remain focused on our mission of providing healing and hope to children and families,' Marlin said. Kansas Reflector first reported on allegations of misconduct by Smith and Whymark shortly after they left Saint Francis Ministries in November 2020. An internal investigation revealed excessive billing for IT services and charges by Smith for lavish personal expenses. In 2022, Saint Francis sued Smith, Whymark and former general counsel David Shaffer, accusing them of operating a scheme to enrich themselves through fraudulent billing. The lawsuit identified Shaffer and Whymark as brothers. The former employees denied the claims, and Smith countersued Saint Francis employees for defamation because of reporting by Kansas Reflector. Saint Francis hired Smith, an Episcopal priest ordained in 2014 by the Diocese of Chicago, as president and CEO in 2014. From 2017 to 2020, according to the state lawsuit, Smith charged $442,276.17 on Saint Francis Ministries credit cards, 'a significant portion of which funded lavish meals, entertainment, travel and gifts for him and his family.' Smith also paid a travel agency $57,125.43, 'a majority of which had no legitimate business purpose or was grossly excessive,' the lawsuit said. Shaffer for at least eight months billed Saint Francis both through his Chicago law firm and in his individual capacity, which the lawsuit characterizes as legal malpractice. From 2015 to 2019, Shaffer billed more than $1 million in legal fees to his law firm, and from 2018 to 2020 an additional $500,000 in payments to himself. Smith approved the 'grossly excessive' invoices, the lawsuit said, including invoices for legal work unrelated to Saint Francis and $4,000 for moving and storage expenses for office furniture at his Chicago law firm. Whymark wasn't qualified to provide IT services, but Smith hired him as chief information officer and signed off on more than $11 million for services provided by Whymark's IT company. The lawsuit said those services were 'grossly deficient and overpriced.' Whymark's company outsourced work to build a content management system that wouldn't function. In the fall of 2019, while Saint Francis was undergoing a financial audit, the system crashed and destroyed financial data. Whymark then wiped the hard drives, according to the lawsuit, and the organization spent an estimated $3.2 million to repair Whymark's IT work. At the time, Saint Francis Ministries was the largest foster care provider in Kansas, serving more than 3,000 foster kids. By January 2020, the IT costs combined with a severely underbid contract to provide foster care services in Nebraska placed Saint Francis in financial peril. The organization survived in part by receiving a $10 million Payment Protection Program loan, which it wasn't eligible for and never repaid, during the COVID-19 pandemic. Last year, the Kansas Department for Children and Families awarded new foster care contracts and replaced Saint Francis as the provider for the Wichita region. Saint Francis continues to provide foster care services for much of central and western Kansas.
