Community Leader and Ex-cop Accused of Misusing Fed Funds

In 2006, 26 Bermuda citizens flew into Newark and embarked on a 10-day tour during which they were treated to restaurants, movies, a pro-basketball game, shopping trips, and even visits to an aquarium and a bowling alley.

The cost? More than $4,000 of taxpayers' money originally intended for an anti-crime program in Newark, according to federal prosecutors.

And that is just the tip of more than $200,000 in federal grants that were allegedly misused by Fredrica Bey, a prominent Newark community leader, and De Lacy Davis, a former East Orange police officer, both of whom have also been accused of concealing where the misspent money went, according to a civil complaint filed by the U.S. Attorney's Office.

The U.S. Department of Justice granted the money several years ago to non-profit group, Women in Support of the Million Man March, or WISOMMM, founded in 1995 by Bey, who is currently the executive director, according to the lawsuit filed Jan. 24.

An investigation revealed that Bey and several associates allegedly used the money to pay off "debts, operating costs, or expenditures" of WISOMMM, the complaint says, instead of for WISOMMM's "Boycott Crime Campaign."

WISOMMM also gave a portion of the money to Davis, a longtime WISOMMM affiliate, for taking 26 Bermuda citizens on that 10-day trip, which did not meet the grant guidelines, the lawsuit reads. Davis also took thousands of dollars from the federal grant and gave them to the East Orange Police Athletic League, where he has served as director.

Davis is currently the principal for Adelaide L. Sanford Charter School in Newark, which is overseen by WISOMMM. He has also been a vocal activist against police violence.

Calls to Bey and Davis were not answered on Tuesday.

A spokesman for Paul Fishman, U.S. attorney for New Jersey, declined comment. Daniel Kirschbaum, an assistant attorney under Fishman, is the prosecuting lawyer, according to the complaint.

In 2005, the U.S. Department of Justice gave an "Office of Juvenile Justice and Delinquency Prevention" grant totaling $345,325 for WISOMMM's "Boycott Crime Campaign," or BCC, which was slated to provide counseling, tutoring, mentoring, workshops, and field trips.

As part of the grant's conditions, WISOMMM had to submit quarterly financial reports and other paperwork such as program descriptions, the complaint reads. The group also had to submit to audits on the grant.

In 2006, WISOMMM transferred more than $270,000 of the grant money from a dedicated bank account for the anti-crime program to two WISOMMM accounts.

"These fund transfers were unrelated to the BCC’s grant-approved activities," the complaint says.

WISOMMM has repaid $77,000 of the grant, but $197,447 is still outstanding, which the federal government is seeking to recover.

WISOMMM allegedly misused part of the money by having the anti-crime program pay rent on WISOMMM property even though the space was owned "free and clear" by WISOMMM.

The complaint also accuses WISOMMM of misusing the money slated for the anti-crime program's dedicated employees, who were instead working for WISOMMM's childcare facilities.

Other accusations state that WISOMMM either did not provide paperwork or faked paperwork for expenses such as an accountant, insurance payments, computer and software equipment, and other items.

The complaint also termed the payments to Davis as "suspicious" and the activities and expenses he used the money for had "little or no apparent connection to the goals of the BCC grant," including the tour for the Bermuda citizens.

Davis was paid more than $4,000 for "nine workshops in 'conflict resolution' that he had or would conduct for BCC," the complaint reads. But it was instead used for the visiting Bermudans and about 15 EOPAL staffers and youth.

Davis was also paid separately $87,500 by the Bermuda government for criminal gang consulting work, part of which went toward those workshops Davis was already paid for by WISOMMM, the lawsuit says.

"Not only were these activities largely unrelated to the activities described in the BCC grant and provided primarily to non-local participants, but Davis was also separately compensated for conducting them," the complaint reads referring to the payment from Bermuda.

In addition to the Bermuda payments, Davis took additional BCC funds which he used to either gift or loan to EOPAL, which he runs.

"Defendants WISOMMM and Bey have never explained or provided justification for these payments to Davis, or the exact nature of the relationship between Davis, WISOMMM and the EOPAL at the time of such payments," the lawsuit reads.