Former leaders of DCF contractor Saint Francis charged with fraud, money laundering
A federal grand jury has indicted two former leaders of foster care contractor Saint Francis Ministries on alleged financial crimes.
Robert Nelson Smith and William Byrd Whymark were charged Wednesday in U.S. District Court in Topeka with wire fraud, conspiracy to commit wire fraud and money laundering.
Smith and Whymark "conspired and engage in a scheme to defraud Saint Francis Ministries" by submitting and approving false invoices, prosecutors charged. The scheme allegedly resulted in payments to Whymark of more than $10 million, with a kickback to Smith of $50,000, plus Smith's use of Saint Francis credit cards for personal expenses.
Smith was formerly the president and CEO of the Salina-based Saint Francis, a faith-based nonprofit, from May 2014 until November 2020, when the SFM board asked for his resignation. Smith was an ordained priest with the Episcopal Church. Whymark was chief information officer.
Saint Francis is one of the troubled contractors in the privatized child welfare system managed by the Kansas Department for Children and Families.
"As the case moves forward, Saint Francis will continue to work transparently and collaboratively with federal authorities as part of the investigative process," SFM chief advancement officer Cristian Garcia said in a statement. "We appreciate the diligence exhibited in the pursuit of justice by all parties.
"Saint Francis has been committed to serving vulnerable children for more than 77 years. We look forward to continuing our mission of providing healing and hope to children and families. Serving those entrusted to our care remains our primary focus."
More:DCF contractor Saint Francis Ministries defrauded of $10.7 million by former IT chief, feds allege
Federal prosecutors said that Whymark misrepresented his academic credentials and Smith went behind the Saint Francis board's back to give Whymark's company its contract.
Despite his $164,000 salary as the organization's top IT officer, Whymark outsourced work to his New York-based company, WMK Research. He then further outsourced work from his company to subcontractors in India, QubeRoot Analytics and Pinnacle Seven Technologies.
Prosecutors allege that Whymark submitted fraudulent invoices that manipulated the value of the work performed by the subcontractors he wasn't supposed to use. Smith then approved the high-dollar invoices, despite not having the authority to do so.
"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," prosecutors said.
Smith and Whymark face one joint count of conspiracy to commit wire fraud and 10 joint counts of wire fraud. The grand jury added five additional counts for Smith of wire fraud, three counts against Whymark of money laundering and one count of money laundering against Smith.
If convicted, they could face decades in prison and millions of dollars in fines. Prosecutors are seeking restitution and forfeiture. The Federal Bureau of Investigation previously obtained warrants to seize Whymark's bank accounts and initiated civil asset forfeiture proceedings.
This article originally appeared on Topeka Capital-Journal: Former leaders of Kansas DCF contractor Saint Francis indicted by feds
