A couple from Edwardsville, Illinois, Diarra Williams and Nicholas Warford, have been indicted on charges related to a $7 million fraud scheme involving funds intended for feeding low-income children in Missouri. They are accused of diverting these funds for personal use.
The indictment outlines multiple charges against the pair, including conspiracy to commit wire fraud, wire fraud itself, conspiracy to commit money laundering, and obstruction of an official proceeding. Both Williams and Warford are expected to plead not guilty.
According to the indictment, Williams operated The Bailey Foundation, a non-profit organization that falsely claimed to have served over 2.2 million meals through Missouri's At-Risk Afterschool Program and Summer Food Service Program. These programs receive funding from the U.S. Department of Agriculture and provide meals through schools and non-profits.
The fraudulent activities allegedly took place between March 2020 and July 2022. One invoice from April 2021 reportedly claimed that over 208,000 meals were served with milk included; however, Warford’s company did not purchase any milk and spent less than $5,000 on food.
Prosecutors claim that the stolen funds were used by Williams and Warford to acquire luxury items such as a $1.4 million home in Edwardsville and several high-end vehicles. Additional expenditures included vacations costing $140,000, $100,000 on home furnishings and landscaping, over $50,000 on school tuition payments, and $460,000 directed towards Warford's mother.
The indictment also accuses the couple of providing false reports about their spending to state authorities and misleading the IRS by categorizing their personal expenses as business costs associated with Warford’s company. Additionally, they allegedly produced fake invoices during a federal investigation.
Assets sought for forfeiture include vehicles purchased with illicit funds as well as the couple’s residence.
Chris Crocker of the FBI St. Louis Division commented on the severity of the allegations: “The alleged fraud is beyond despicable.” William Steenson from IRS-Criminal Investigation added that while the accusations are severe, "this arrest means their actions have been disrupted."
The case is being investigated by the FBI alongside other agencies including the USDA Office of Inspector General and IRS-CI. Assistant U.S. Attorney Derek Wiseman is leading the prosecution.