News / International
Zimbabwean man jailed for $850,000 fraud in the US
07 Sep 2013 at 06:44hrs | Views
GRAND RAPIDS, U.S - A Grand Rapids-area Zimbabwean man has been sentenced to six years in federal prison for his part in the embezzlement of $850,000 from Battle Creek's W.K. Kellogg Foundation.
Nehemiah Muzamhindo, 48, of Kentwood and a native of Zimbabwe, pleaded guilty in March to money laundering and failing to pay federal taxes after federal prosecutors alleged he created shell companies and opened bank accounts while persuading the foundation to provide money for charities in Africa.
He was sentenced Wednesday by U.S. District Judge Janet Neff in Grand Rapids.Along with two other people, Tichaona Machamire of Berrien Springs and Sabina Brand, who was employed by the foundation in South Africa, Muzamhindo took money intended to aid children in Africa.
"It was a huge disappointment to the foundation," said Joanne Krell, WKKF vice president for communications.
"We don't want to see the money used for fraudulent activities. It was a financial blow but even bigger than that it was a moral blow."
WKKF withdrew from programs in Africa because of the fraud case but also because economic conditions in 2009 affected the foundation's assets.
"We closed the office because of the economic conditions, but it was not helped by the fraudulent operations," she said Thursday.
She said the foundation also changed some procedures including no longer funding unsolicited proposals. "Now we solicit proposals," she said.
Assistant U.S. Attorney Timothy Verhey said Thursday that Brand is alleged to have approved fraudulent invoices and funneled the money to the two men who then sent some back to her.
The operation was uncovered during an investigation of fraudulent passports.All three were indicted in 2009, but Verhey said the case was delayed while authorities unsuccessfully attempted to extradite Brand from South Africa. Instead she was prosecuted there and is serving a 15-year prison sentence.Machamire served about six months in jail after entering a plea to passport fraud and agreeing to testify for prosecutors.
Muzamhindo was ordered to pay $709,000 in restitution, believed to be his part in the scheme, although its not clear he will ever be able to repay the money.
"We are always hopeful, but we have not seen anything in his immediate portfolio that he will be able to repay," Verhey said.
He also was sentenced to three years of supervised released, but the expectation is Muzamhindo will be deported after serving his sentence, Verhey said. He entered the United States in 1995 and eventually was granted permanent resident status.
Nehemiah Muzamhindo, 48, of Kentwood and a native of Zimbabwe, pleaded guilty in March to money laundering and failing to pay federal taxes after federal prosecutors alleged he created shell companies and opened bank accounts while persuading the foundation to provide money for charities in Africa.
He was sentenced Wednesday by U.S. District Judge Janet Neff in Grand Rapids.Along with two other people, Tichaona Machamire of Berrien Springs and Sabina Brand, who was employed by the foundation in South Africa, Muzamhindo took money intended to aid children in Africa.
"It was a huge disappointment to the foundation," said Joanne Krell, WKKF vice president for communications.
"We don't want to see the money used for fraudulent activities. It was a financial blow but even bigger than that it was a moral blow."
WKKF withdrew from programs in Africa because of the fraud case but also because economic conditions in 2009 affected the foundation's assets.
"We closed the office because of the economic conditions, but it was not helped by the fraudulent operations," she said Thursday.
She said the foundation also changed some procedures including no longer funding unsolicited proposals. "Now we solicit proposals," she said.
Assistant U.S. Attorney Timothy Verhey said Thursday that Brand is alleged to have approved fraudulent invoices and funneled the money to the two men who then sent some back to her.
The operation was uncovered during an investigation of fraudulent passports.All three were indicted in 2009, but Verhey said the case was delayed while authorities unsuccessfully attempted to extradite Brand from South Africa. Instead she was prosecuted there and is serving a 15-year prison sentence.Machamire served about six months in jail after entering a plea to passport fraud and agreeing to testify for prosecutors.
Muzamhindo was ordered to pay $709,000 in restitution, believed to be his part in the scheme, although its not clear he will ever be able to repay the money.
"We are always hopeful, but we have not seen anything in his immediate portfolio that he will be able to repay," Verhey said.
He also was sentenced to three years of supervised released, but the expectation is Muzamhindo will be deported after serving his sentence, Verhey said. He entered the United States in 1995 and eventually was granted permanent resident status.
Source - HollandSentinel.com
