DOJ Charges Minneapolis Nonprofit Leaders Over Taxpayer Funds Fraud

A Minnesota non-profit’s operations director has been charged in a multimillion-dollar grant fraud scheme tied to a larger conspiracy led by the group’s founder, and federal prosecutors say the scam siphoned off sizable government and private grant dollars. The case names multiple state and federal agencies as victims, resulted in a guilty plea and a lengthy prison sentence for the founder, and helped fuel recent policy moves on immigration tied to fraud concerns.

Tony Robinson, 41, of Minneapolis made an initial court appearance after an indictment accused him of five counts of wire fraud and related conspiracy charges. Prosecutors say Robinson worked closely with Tezzaree El-Amin Champion inside Encouraging Leaders, a Minneapolis non-profit Champion founded and ran. Robinson held the title of operations director while authorities say the group funneled grant money away from its stated programs.

According to charging papers, Champion used the organization as a vehicle to submit fraudulent grant applications and progress reports to both government and private grantmakers. Large portions of awarded funds were allegedly diverted for personal use by participants in the scheme. The indictment lists victims that include the U.S. Department of Justice, Hennepin County, the City of Minneapolis, the Minnesota Department of Education, the Minnesota Department of Human Services, and the Minnesota State Arts Board.

Robinson’s alleged involvement ran roughly from December 2021 through October 2022, during which time he worked with a freelance worker in Africa to draft and submit false grant progress reports for the organization. Prosecutors say those fabricated documents were sent to multiple grantors to conceal how money was actually spent.

Examples in the case point to false reporting to the U.S. Department of Justice on juvenile justice and substance-abuse prevention projects and to the Minnesota State Arts Board on arts programming that never occurred. The filings also reference a Minnesota non-profit founded by the McKnight Foundation, identified by prosecutors as Non-Profit A, which focused on youth learning outside the classroom. Authorities allege Encouraging Leaders overstated activity and impact to secure continued funding.

The complaint describes reports that claimed events and activities took place when they did not, and that credited the group with assisting students it never served. Those false progress reports, prosecutors say, were central to keeping grant payments flowing and to masking the misappropriation of funds. In total, Robinson’s and others’ conduct tied to Encouraging Leaders caused losses exceeding $1 million to the victims identified in the case.

Champion was charged separately and pleaded guilty before sentencing. On November 18, 2025, U.S. District Judge Katherine M. Menendez sentenced Champion to 84 months in prison, to be followed by 60 months of supervised release, and ordered payment of $3,479,575 in restitution. In court, Judge Menendez described the conduct as “relentless” and said it “reflects a scale and a depth that is disturbing.”

The investigation involved the United States Postal Inspection Service, the Internal Revenue Service-Criminal Investigation, the Minnesota Bureau of Criminal Apprehension, and the Minneapolis Police Department. Assistant U.S. Attorneys Joseph H. Thompson and Matthew D. Forbes are handling the prosecution for the U.S. Attorney’s Office. Those agencies say the case underscores the importance of oversight on grant programs and prosecuting fraud where it is found.

Last week, President Donald Trump ended temporary protected status for Somalis in Minnesota, citing rampant fraud as a key reason for the policy change. The change makes it easier to deport Somalis in Minnesota, some of whom have been caught orchestrating massive amounts of fraud. Republicans argue the move restores accountability and closes a loophole that had been exploited to shield individuals involved in large-scale schemes.

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