41 Employees At Delaware County Nonprofit Accused Of Stealing Nearly $1M In Kickback Fraud Scheme
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DELAWARE COUNTY, Pa. (CBS) - More than 40 former employees of a human services nonprofit in Delaware County have been charged in connection to an alleged overtime rigging and kickback scheme.
BREAKING: 41 people, including 4 supervisors from The Elwyn Organization in Delaware County, have been charged in connection to an overtime rigging and kickback scheme. @CBSPhilly
— Joe Holden (@JoeHoldenCBS3) January 16, 2019
Forty-one employees - including four supervisors - at the Elwyn Organization are accused of stealing nearly $1 million from the company over a 21-month time period. The supervisors charged have been identified as 40-year-old Tyloneous Wilson, 34-year-old Karriemah Williams, 36-year-old Lakiea Gay, and 28-year-old Terrance Chatman.
Police say the alleged scheme happened at 10 facilities throughout Delaware County.
According to the criminal complaint, the supervisors would edit their employees' time sheets and input extra overtime, but would not require the employees to work the extra hours. In return, the employees and supervisors would split a portion of the extra pay.
"What these 41 people did over the course of months and months is care about themselves," said Delaware County District Attorney Katayoun Copeland.
An internal investigation was launched after an accountant noticed an excessive amount of overtime being paid to multiple employees at several of the housing sites throughout Delaware County.
"In 2017, Elwyn launched a leadership transition designed to create a path to long term success and sustainability for the organization. Later that year, Elwyn became aware of some irregularities in payroll record data. Elwyn management notified the Pennsylvania State Police and conducted an internal investigation which ultimately determined that 4 supervisors and 38 of their direct reports in Elwyn's Pennsylvania residential program participated in a payroll fraud scheme resulting in significant theft from the organization. All involved employees were terminated and Elwyn fully cooperated with law enforcement and the District Attorney's Office. Elwyn remains committed to the safety of the individuals we support," said Charles McLister, president and CEO of Elwyn.
Authorities will hold a press conference today at 3 p.m. to announce the conclusion of the investigation by Pennsylvania State Police.