Feds audit nonprofit – Possible misuse of funds

A nonprofit group that helps minority businesses get start-up loans is under federal scrutiny for possible misuse of a $409,000 grant, the San Francisco Chronicle reports.

Urban Economic Development Corp. is being audited by the office of the inspector general for the U.S. Department of Commerce, a department staff member said.

The nonprofit’s executive director testified before a grand jury as part of an FBI investigation into alleged wrongdoing in San Francisco’s minority contracting program.

Documents obtained by the Chronicle show that auditors want to know if some of the $409,000 was used to secure loans for people and businesses outside of San Francisco.

The money was supposed to be spent only in the city.

Comer Marshall, the nonprofit’s executive director, said the audit mostly concerned a program called the Minority Business Development Center.  That program has been shut down, Marshall said, and the staff member who ran it has been fired.

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