An Arkansas nonprofit executive pleaded guilty to wire fraud and was sentenced for stealing roughly $1.7 million in federal grant money intended for local services, facing prison time, supervised release, and a court-ordered restitution amounting to nearly $1.79 million.
Star Rana Jackson, a longtime employee of the American Indian Center of Arkansas who for a time served as Executive Director, was sentenced to 48 months in federal prison after a guilty plea to wire fraud. Jackson worked at AICA for more than 10 years and was promoted to Executive Director in October 2022 before the organization terminated her in May 2025. The scheme unfolded while she held the position that gave her control over certain grant withdrawals.
The U.S. Attorney for the Eastern District of Arkansas, Jonathan D. Ross, announced the sentence imposed on Wednesday, June 3, 2026, by United States District Judge D.P. Marshall, Jr. An information charging Jackson was filed on January 14, 2026, and she pleaded guilty that same day. Judge Marshall ordered three years’ supervised release and restitution totaling $1,788,858.99; there is no parole in the federal system.
The American Indian Center of Arkansas is a nonprofit funded entirely by federal grants from the Department of Labor, the Department of Education, and the Department of Health and Human Services. AICA provides services to indigenous people living in Arkansas and to others in need, relying on grant disbursements to operate programs and support clients. While Jackson was Executive Director she was reportedly the sole person with access to the federal payment management system and the only person completing withdrawals for awarded grants.
Investigators found a series of withdrawals and transfers that moved grant funds out of AICA accounts into accounts Jackson controlled or could access. On or about June 24, 2024, Jackson completed a withdrawal from a Department of Education grant in the amount of $30,000 and deposited those funds into an account she had opened without the AICA Board’s knowledge. A few days later, on or about June 27, 2024, she withdrew $40,000 from a Department of Health and Human Services grant and deposited it into a non-active AICA account to which she retained access.
Additional withdrawals included a Department of Education grant disbursement of $15,000 on or about July 1, 2024, and an online transfer of $10,000 sent to a separate financial institution using a bank account in the name of Jackson and her husband. Over roughly three months while serving as Executive Director, Jackson made several withdrawals and completed approximately 180 deposits directly from AICA accounts for her personal use. Those deposits and transfers were hidden among legitimate grant activity until the pattern prompted a federal probe.
Records and the investigation show Jackson used AICA funds to purchase cashier’s checks and to pay for unauthorized subscription streaming services, among other personal expenses. The thefts and misappropriations added up to more than $1.7 million in embezzled grant money, depleting funds intended for community programs. The financial maneuvers included moving federal grant disbursements into accounts not authorized by AICA’s board and using online payment platforms to reroute money into personal or family-controlled accounts.
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The Federal Bureau of Investigation conducted the investigation, and the case was prosecuted by the U.S. Attorney’s Office for the Eastern District of Arkansas. Prosecutors presented evidence that detailed the timing, amounts, and destinations of the withdrawals and deposits, which supported the wire fraud charge and the restitution calculation ordered by the court. Jackson’s sentencing reflects federal penalties for a scheme that diverted taxpayer-funded grants away from their intended public-service purpose.
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