Blaze News investigates: Staff from migrant shelter accused of funneling taxpayer funds to family's business



Nongovernmental organizations have been tasked with providing shelter accommodations and a variety of humanitarian services to those flooding into the country in unprecedented numbers under the Biden-Harris administration's illegal immigration crisis.

The federal government's massive investments in NGOs have ignited concerns that the organizations are operating less like nonprofits and more like government contractors. However, these organizations are not beholden to the same transparency requirements as contractors, leaving them potentially more vulnerable to waste, fraud, and abuse.

So far in fiscal year 2024, Pima County, Arizona, has reportedly received nearly $21.3 million of taxpayer funds from the Federal Emergency Management Agency's Shelter and Services Program. The vast majority of that money was directed to Catholic Community Services of Southern Arizona's Casa Alitas, a program offering "shelter, necessities and travel assistance to asylum seeking families," according to its website.

'Are we going to find out more inappropriate activities with taxpayer money?'

While Casa Alitas started from humble beginnings in 2014 with an all-volunteer staff, it has since rapidly expanded as the immigration crisis has exploded. As recently as 2019, the program only provided services to 30 individuals a day. Those estimates have since climbed to as many as 1,800 daily.

In recent weeks, the Tucson-based program has been rocked by a massive corruption and conflict-of-interest scandal, with allegations that two of its former employees funneled taxpayer funds to a family-run business, intentionally overcharging to rake in additional profits.

As a result, the workers have since been removed from their positions, but now the program is facing calls for a federal investigation into the alleged misused funds.

Casa Alitas faces corruption accusations

According to publicly available tax records, Catholic Community Services of Southern Arizona, a service network in the Roman Catholic Diocese of Tucson, spent $14.5 million in federal funds in 2023. That same year, it nearly doubled its revenue, $42.2 million, compared to 2022, $24.3 million.

Within the last several months, the group's Casa Alitas program has come under fire after a couple of its employees were accused of misusing taxpayer funds.

The New Republic first reported that Pima County Administrator Jan Lesher released a May 17 memo stating that one of CCS' vendors was providing services to Casa Alitas "without a contract," which she noted was "in violation of County and federal procurement rules for the Federal Emergency Management Agency Shelter Services Program grant."

Lesher wrote that CCS had "taken disciplinary action against the employees involved in hiring the vendor and alerted the County about the lack of required procurement procedures and contracting."

She added that CCS was "taking the appropriate corrective actions" in response to the violations. However, the details and circumstances leading up to the realization of the violations were unclear at the time.

Lesher's memo quoted CCS Chief Executive Officer Elena Dwyre as stating that, following an internal review, the organization discovered that Casa Alitas had been "overcharged for services by a contractor."

"Upon further investigation we learned that two employees with that program [Casa Alitas] had violated our conflict of interest and purchasing policies," Dwyre was quoted as saying. "Those employee relationships were quickly terminated, the contractor relationship was likewise discontinued, and program partners were promptly notified of the issue."

The organization did not divulge the names of the employees. However, last month, an anonymous source shared internal documents with the New Republic that revealed who was allegedly involved in the illegal vendor contract.

According to the documents obtained by the news outlet, that questionable contract was with Amado Laundry Service, located in Amado, nearly 40 miles away from Casa Alitas in Tucson. The company reportedly sent 37 laundry invoices to the organization totaling $411,967.

The Arizona Daily Star reported that the laundry vendor was providing services without a contract and was selected without a competitive bid process.

The New Republic noted that the laundry company charged excessively high prices compared to other operators in the Tucson area. The news outlet found that other vendors charge anywhere from $1.15 to $2.80 per pound of laundry, while Amado Laundry Service charged the nonprofit between $3.10 and $4.50 per pound — a nearly 300% markup.

Additionally, photocopies of checks obtained by the New Republic revealed that the organization may have overpaid the vendor, sending it $438,940.55.

Furthermore, Arizona Corporation Commission records showed that the laundry company was not formed until several weeks after it started submitting invoices.

However, the real bombshell was revealed when the news outlet uncovered who the laundry business was registered to — the mother of Diego Piña Lopez, the organization's then-executive director.

While the nonprofit never released the names of the two employees who were removed from their positions, after the scandal was uncovered, Piña Lopez and his immediate supervisor, Teresa Cavendish, were no longer employed by CCS.

Despite the shady business dealings, Dwyre confirmed that the vendor did, in fact, provide laundry services to Casa Alitas.

While Piña Lopez was allegedly allowing his mother's business to soak up taxpayer dollars, Casa Alitas, the largest shelter in Arizona, was heading into a potential funding crisis.

Federal funding was set to run out at the end of April, and local leaders, including Piña Lopez, were voicing concerns that illegal immigrants could be released onto the streets unless the organization received additional financial resources from the federal government.

At the time, he told the Arizona Republic, "I think that's going to lead to a lot of chaos, and a lot more cost across the board for folks to get services, as many of the people coming through leave fairly quickly here."

Casa Alitas warned 30 workers — half its staff — that they may no longer receive pay after March 31. The organization even geared up to shut down the largest county-owned building it used to provide services to illegal aliens due to the potential dried-up funds.

Piña Lopez claimed that the nonprofit would be forced to prioritize providing shelter to families with children, warning that the county's street releases would reach up to 400 individuals daily.

"We've avoided the street releases for so long because we've all worked together and we've developed a really nuanced system, and I think we just need to keep working towards that," Piña Lopez told the Arizona Republic. "And if we're going to have this problem where the funding is going to be held up for a little while, then we need to figure out as a team how we're going to work through as Tucson, and to build out our resources to look different, but not to be different."

He noted that the organization would have to rely on community donations and volunteers to keep its operations going if the funding were to end.

Lesher noted that "everybody was out looking very hard to see how we can squeeze the nickels and roll the programs as far as they could be rolled," unaware at the time that the laundry vendor was absorbing some of those needed funds.

Ultimately, the funding did not run out, with Congress passing a $1.2 trillion spending package in March.

Piña Lopez declined requests for comment from the New Republic or the Arizona Daily Star. Cavendish did not respond to requests for comment from either news outlet.

What now?

The scandal involving Casa Alitas prompted concerns about how taxpayer funds are being spent by organizations and NGOs tasked with providing services to illegal aliens.

County Supervisor Steve Christy told the Arizona Daily Star that his "first response" to the uncovered unethical activity was that "maybe it's symptomatic of a bigger problem."

"Are we going to find out more inappropriate activities with taxpayer money? It's certainly very troubling to me," Christy stated.

On August 20, Congressman Juan Ciscomani (R-Ariz.) penned a letter to the Department of Homeland Security Inspector General Joseph Cuffari asking the agency to take a closer look into CCS and the potential misuse of taxpayer funds.

Ciscomani requested a "comprehensive investigation into the use of federal funds," noting that Pima County has already received more than $20 million in fiscal year 2024 through FEMA's SSP.

'We were shocked to discover two Casa Alitas employees had violated our conflict of interest and purchasing policies.'

"It is my understanding that while Pima County is the fiscal agent, these funds go primarily to Casa Alitas migrant operations. Moreover, it is my understanding that when compared to other SSP grant recipients, the burn rate of funds used by Casa Alitas has been incredibly high," Ciscomani told Cuffari.

The congressman requested the Office of Inspector General to conduct a review of "all federal dollars" provided to the county through SSP since 2020.

"Specifically, the dollar amount provided to Catholic Community Services' Casa Alitas," he noted.

The congressman also requested reviews of "all procurement processes documented by" Casa Alitas and a "comparison of the cost per migrant, per day, of all funds awarded under SSP."

A spokesperson for Ciscomani told Blaze News that the DHS OIG acknowledged receiving the letter but has not yet responded.

"Amid allegations of corruption and the misuse of taxpayer dollars, I am calling for a thorough and comprehensive investigation into the operations and use of funds by Casa Alitas," Ciscomani said in a statement sent to Blaze News. "It is critical that we ensure transparency and accountability in the use of federal funds meant to address the ongoing migrant crisis. Congress, and the American people, deserve transparency and anyone who has taken advantage of these programs must be held accountable."

The DHS OIG did not respond to requests for comment.

Lorraine Rivera, the director of communications for the Diocese of Tucson, told Blaze News, "We are aware of the matter regarding Casa Alitas, and we are grateful for Catholic Community Services' professional and transparent approach in addressing this issue and promptly self-reporting it to Pima County, as well as the Diocese. CCS has assured us of its commitment to operate with integrity, cooperate with County officials, and continued dedication to our Catholic mission."

In a statement to Blaze News, Dwyre said:

As an organization rooted in faith, we at Catholic Community Services take seriously our duty to operate with integrity and to be good stewards of the resources entrusted to us. Earlier this summer, we learned our migrant shelter program, Casa Alitas, had been overcharged for laundry services by a contractor. Following an investigation into this discrepancy, we learned this contractor had not been procured in line with County guidelines, and we were shocked to discover two Casa Alitas employees had violated our conflict of interest and purchasing policies, which are in place to ensure fiscal responsibility.

Importantly, Casa Alitas promptly self-reported this incident to its program partners, including Pima County and the Diocese of Tucson. This was a clear violation of not only our best practices, but also of our values, faith and trust, and we are deeply disappointed by these actions. Those employees were quickly removed, and the contractor relationship was likewise discontinued.

Since that time, we have worked closely and cooperatively with Pima County leadership to thoroughly review all our contracts to confirm they are aligned with necessary federal rules and guidelines. Additionally, we have taken steps to rectify these billing issues with the County, improve training practices for employees and strengthen oversight of our purchasing processes.

While we are confident this matter will not impede our operations or our mission, we will continuously seek ways to strengthen our best practices.

NGOs profit off administration's crisis

The Biden-Harris administration has used its self-inflicted border crisis to pump billions of dollars into organizations that provide services to illegal aliens who are awaiting years-out court dates to review their not-yet-verified asylum claims. In addition to the chaos at the southwest border, the federal government has also expanded so-called "lawful pathways" to expedite the entry of foreign nationals in other ways, including by providing direct flights into the United States.

These efforts have led to an urgent need to provide shelter and humanitarian services to the illegal alien arrivals.

In late August, the administration announced it would distribute another $380 million to 50 nonprofit organizations and local municipalities providing such services, including funding to SSP. According to the federal government, the funds help to ensure that Customs and Border Protection's holding facilities do not become overcrowded.

So far this year, the administration has already earmarked $640 million in SSP grants. The latest round of funding will give Maricopa County and Pima County $38 million to split between them.

Jessica Vaughan, the director of policy studies for the Center for Immigration Studies, recently sounded the alarm about the potential of misused taxpayer funds, telling Blaze News, "These organizations, they call themselves advocacy groups or charitable organizations, or even NGOs, but what they really are is government contractors who are being paid by the government, seeking work with the federal government to perform these services to illegal migrants. In effect, resettling illegal migration, assisting illegal migrants."

She noted that some of the organizations have even crossed the line "into actually sheltering and harboring, and thereby encouraging illegal immigration."

"They operate funded primarily with taxpayer dollars, and yet they consider themselves to be largely immune from transparency or any examination of their activities," Vaughan explained.

In an effort to stop these potentially unlawful activities, Texas Attorney General Ken Paxton filed what Vaughan called a "very important and groundbreaking" lawsuit against an NGO that he claims is facilitating unlawful crossing and shielding illegal aliens from federal immigration officials, Blaze News previously reported.

Paxton's complaint claims that El Paso-based Annunciation House, a Catholic nonprofit, "by its own admissions" has facilitated illegal immigration.

His office has stated that "Annunciation House is in a category of its own among these NGOs" because it is "openly operating in violation of the law without any pretense of trying to comply with the law." The lawsuit aims to shut down the nonprofit's operations in Texas.

Annunciation House has denied these claims, stating that Paxton holds an "illegal, immoral and anti-faith position."

Blaze News investigates: Texas seeks to shut down NGO for alleged involvement in human smuggling



Many non-governmental organizations have been raking in massive profits under the Biden-Harris administration's open border policies, receiving billions in taxpayer funds to provide illegal immigrants with various services, including shelter accommodations, healthcare, food, legal services, job training, language courses, and more.

Due to the administration's refusal to shut down the border and unrelenting dedication to expanding so-called "lawful pathways" for foreign nationals, the country's immigration system has become overwhelmed. This unprecedented situation has allowed the federal government to justify pouring massive resources into NGOs, functioning less as nonprofits and more like government contractors.

Problematically, some of these organizations appear to be keen on not only helping illegal immigrants who are already here, but also on helping more immigrants illegally cross the border.

Texas, however, is leading the charge in pushing back against one of these NGOs, the El Paso-based nonprofit Annunciation House.

Earlier this year, Attorney General Ken Paxton (R) filed a lawsuit against Annunciation House, aiming to shut it down after he claimed his office found overwhelming and undeniable evidence that the organization has "by its own admissions," facilitated illegal immigration.

Annunciation House did not respond to repeated requests for comment for this story.

What is Annunciation House?

According to Annunciation House's website, it is a volunteer organization "rooted in Catholic social teaching" that provides "hospitality to migrants, immigrants, and refugees.

As part of one of its outreach programs, the Border Awareness Experience, the organization takes individuals to visit the southern border, listen to the stories of illegal immigrants, and stay at a shelter. Annunciation House has operated homes in El Paso and Ciudad Juarez, Mexico, for over four decades, according to its website.

Guests who stay at the organization's homes include "people who have come to the US seeking work, to those who have fled violence and extortion in their home countries, to undocumented families living in El Paso, who have come upon financial hardship," the site reads.

Timeline of events

On February 7, Paxton served Annunciation House with a Request to Examine, demanding a number of the organization's documents, including all services it provides to illegal aliens, all facilities it operates within Texas, all applications for humanitarian relief funding, all documents provided by and to illegal aliens as part of the organization's intake process, and all logs identifying illegal aliens who have received its services.

Annunciation House told Paxton that it would provide a response "within 30 days," to which the AG's office replied that it expected "immediate access." The following day, Annunciation House filed a Temporary Restraining Order against the AG's office.

'Let's have a workshop on asylum.'

"The Attorney General came to Annunciation House on February 7, 2024 stating that the organization had one day to turn over a broad swath of records to the Attorney General without an explanation. Annunciation House asked a Court to decide what documents the law permits the Attorney General to access. There is nothing illegal about asking a Court to decide a person's rights," the organization wrote in a press release.

Annunciation House asserted that Paxton's "real goal is not records but to shut down the organization." It accused the AG of holding an "illegal, immoral and anti-faith position."

In July, 205th District Judge Francisco Dominguez granted Annunciation House's request to block the AG office's request to examine, arguing that it "was a pretext to justify its harassment of Annunciation House employees and the persons seeking refuge."

Dominguez called Paxton's attempt to shut down the organization "outrageous and intolerable." He claimed the request for documents violated the Texas Religious Freedom Restoration Act by burdening the organization's "free exercise of religion."

In response to the ruling, Paxton immediately announced his intent to appeal.

"For too long, Annunciation House has flouted the law and contributed to the worsening illegal immigration crisis at Texas's border with Mexico," he said. "I am appealing this case and will continue to vigorously enforce the law against any NGO engaging in criminal conduct."

Texas' lawsuit

The AG office's investigation into Annunciation House was prompted by a request from Texas Governor Greg Abbott (R) to probe any NGOs "planning and facilitating the illegal transportation of illegal immigrants across our borders." The AG's office has also requested documents from other NGOs operating in Texas that are providing aid to illegal aliens.

As a result of its investigations, Paxton's office found that "Annunciation House is in a category of its own among these NGOs" because it is "openly operating in violation of the law without any pretense of trying to comply with the law."

The lawsuit lodged against Annunciation House claims that the organization is not only facilitating unlawful immigration but also harboring illegal aliens in its shelters and shielding them from law enforcement.

"[B]y its own admissions, Annunciation House is engaged in systematic conduct that constitutes illegal alien harboring and operation of a stash house, as a matter of law — both of which constitute felony offenses under the Texas Penal Code," the suit read.

The complaint claims the organization has repeatedly admitted to doing so, citing several examples, including a 2023 media report from El Paso Matters that quoted Ruben Garcia, the founder and executive director of Annunciation House.

The article stated that the NGO provides shelter accommodations to approximately 300 individuals, noting that "many of whom are stuck in limbo because they were never processed by immigration officials."

Garcia reportedly told the news outlet, "They're saying, 'We want to present ourselves. We want to get processed. We want to proceed with our asylum.' So from that was born the idea, let's have a workshop on asylum."

In other words, Garcia allegedly admitted that Annunciation House is aiding illegal immigrants whom federal immigration officials have not processed. Under the Biden-Harris administration, foreign nationals seeking to enter the U.S. must only present themselves at a port of entry, surrender to a Customs and Border Protection agent, and request to apply for asylum. Those who do so will undergo an abbreviated vetting process and, once completed, be released into the country on their own recognizance with years-out court dates to review the validity of their asylum claim later. Because of this, there is little reason for a foreign national to try to evade border agents, as they will likely be allowed into the country so long as they do not have a criminal record within the databases federal officials can access, which is typically limited to U.S. and Interpol databases.

'To call our houses of hospitality "stash houses." Is there no shame?'

"If the allegations of the attorney general, are true, this is a very serious matter," Jessica Vaughan, the Director of Policy Studies for the Center for Immigration Studies, told Blaze News. "They seem to have this NGO's own words and statements that appear to corroborate what the attorney general is saying about them — that this NGO is more than just an emergency shelter. It's become, in effect, a stash house, and it's not serving the desperate migrants seeking shelter and safety, but deliberately opening its doors to those who have evaded the Border Patrol."

The individuals allegedly mentioned by Garcia in the El Paso Matters article have chosen not to surrender to law enforcement, which could indicate that when they illegally entered the country, they intentionally evaded Border Patrol agents or otherwise snuck in undetected.

The article provides further evidence of this by mentioning a family receiving assistance from Annunciation House after "avoid[ing] Border Patrol when crossing the Rio Grande."

The New Yorker interviewed Garcia just weeks after Paxton filed the lawsuit and told the news outlet that Annunciation House has the "freedom" to help both those with pending asylum cases and those who are "undocumented" because the organization "rarely accepts" federal funding and relies primarily on donations.

According to USA Spending, Annunciation House has directly received over $800,000 from the Department of Homeland Security since 2023 for its "shelter and services program." The grant notes that the funding should be used to provide accommodations to "migrants recently released from DHS custody," meaning those who have been processed by federal immigration officials.

As further evidence that Annunciation House has allegedly admitted to illegal activity, the AG's lawsuit cited a 2018 court filing from its then-legal coordinator, who described assisting a foreign national in Mexico with crossing into the U.S. after previously being turned away by Border Patrol officials.

‘They call themselves advocacy groups… but what they really are is government contractors.’

Additionally, the lawsuit noted that the organization's website states that it operates shelters in Mexico for those looking to migrate to the U.S.

"Annunciation House's website is replete with advocacy broadcasting to the world that it is a welcome site for illegal border crossers," Paxton's complaint read. "For example, Annunciation House's website boasts that its activities have 'enabled Annunciation House to become the primary receiving site for refugees who have fallen from the border wall.'"

Annunciation House denies claims

Annunciation House has repeatedly denied Paxton's claims that it facilitates human smuggling.

According to the group's legal counsel, the organization does not determine who is allowed to enter or remain in the U.S., but "only provides basic services to vulnerable families — food, clothing, a place to lay their heads." The organization has compared itself to schools and hospitals that have provided services to illegal immigrants in the U.S.

"If the work that Annunciation House conducts is illegal – so too is the work of our local hospitals, schools, and food banks," the organization said in a press release responding to Texas' lawsuit. "The Attorney General's illegal, immoral and anti-faith position to shut down Annunciation House is unfounded."

During a February press conference addressing the case, Annunciation House emphasized its Catholic roots and accused Texas of attacking a religious organization. The group was joined by El Paso Mayor Oscar Leeser (D), who declared that the city would "not turn its back on anybody," and claimed bipartisan support for the organization.

Garcia stated during the news conference, "I personally am taken aback by the use of words like 'smuggling.' To call our houses of hospitality 'stash houses.' Is there no shame? To refer to houses of God, houses of hospitality as 'stash houses.'"

Garcia repeatedly referred to the organization's shelters as "houses of hospitality."

Nonprofits or government contractors?

Vaughan told Blaze News that there have been concerns for many years that some of the NGOs providing humanitarian services to illegal aliens are crossing the line "into actually sheltering and harboring, and thereby, encouraging illegal immigration."

"They operate funded primarily with taxpayer dollars, and yet they consider themselves to be largely immune from transparency or any examination of their activities," Vaughan said of the NGOs.

She called Paxton's lawsuit against Annunciation House "very important and groundbreaking," noting that other states across the nation are watching to see how this case turns out for Texas. If its lawsuit is successful, it may encourage more states to seek legal action to halt other similar NGOs' operations.

"These organizations, they call themselves advocacy groups or charitable organizations, or even NGOs, but what they really are is government contractors who are being paid by the government seeking work with the federal government to perform these services to illegal migrants. In effect, resettling illegal migration, assisting illegal migrants," Vaughan continued.

'Must be on a PR campaign to try to discredit this investigation.'

In the case of Annunciation House, its legal counsel has claimed that Texas' lawsuit has no validity but to attack a Catholic-based organization. Ever since Paxton initiated the lawsuit, several media outlets have criticized the Attorney General for targeting religious freedoms.

Jerome Wesevich, a lawyer for Texas RioGrande Legal Aid, which is representing Annunciation House, called the lawsuit "an attack on religious freedom."

In a June report, the Catholic Review seemed to defend Annunciation House, stating that Paxton's lawsuit "appeared to downplay the 'religious component'" of the organization's mission. National Catholic Reporter featured a guest opinion piece from a writer who previously volunteered at Annunciation House. She called Paxton's claims of human smuggling "beyond outrageous."

A number of Catholic bishops rallied behind Annunciation House, voicing their support for the group and its work. Even Pope Francis addressed the lawsuit during a 60 Minutes interview in May.

"That is madness, sheer madness to close the border and leave them there," Pope Francis stated. "That is madness. The migrant has to be received. Thereafter, you see how you're going to deal with them. Maybe after you send them back, I don't know. But each case ought to be considered humanly."

The wave of lockstep support behind Annunciation House, condemning Texas for going after a religious-affiliated organization, prompted Vaughan to question whether it was all part of a public relations push.

"Catholic charities and other Catholic leadership organizations must be on a PR campaign to try to discredit this investigation and characterize it as anti-humanitarian and anti-Catholic. And I find that very troubling," Vaughan told Blaze News.

Paxton's lawsuit challenged whether Annunciation House "even has any bona fide religious component."

On its website, Annunciation House states that it "accepts volunteers from all faith traditions (and those who do not claim a faith tradition)." It also notes that there is "no proselytizing" in its shelters but adds that "Catholicism is central to the history and life of our organization." According to the organization, volunteers are expected to attend mass.

However, Annunciation House director Mary Bull provided a deposition about the organization's religious practices that contradicted the website's claims. She stated that guests are not required to participate in any religious services and explained that those services are not regularly offered, noting that "it depends on who's available." According to Bull, the longest period of time she recalls that the organization did not offer mass was "maybe nine months, ten months." Bull stated that Annunciation House does not provide confessions, baptisms, or communion.

The legal battle between Texas and Annunciation House continues to unfold, with the organization maintaining its claim that it does not facilitate illegal immigration but provides humanitarian aid to those in need. If Texas proves unlawful activity, the outcome of the case would assuredly catalyze additional similar lawsuits in other states, potentially impacting the operations of Annunciation House and all other NGOs providing services to illegal immigrants.

NGO responds to allegations it subjected children to ‘repeated’ sexual abuse



A recent Department of Justice lawsuit accused a prominent nongovernmental organization of subjecting unaccompanied children to “repeated” sexual abuse and harassment. The nonprofit responded to the allegations, claiming that the DOJ's complaint "does not present the accurate picture of the care and commitment our employees provide to the youth and children."

Southwest Key Programs, a Texas-based nonprofit, partners with the Department of Health and Human Services to provide housing to minors who unlawfully cross into the United States without a parent or guardian. According to its website, the organization is “an integral partner in the U.S. response to the immigration crisis at our southern border.”

'The child’s accounts were partially corroborated by video footage.'

The DOJ’s lawsuit claimed, “From at least 2015 through at least 2023, multiple Southwest Key employees have subjected unaccompanied children in their care to repeated and unwelcome sexual abuse, harassment, and misconduct and a hostile housing environment, including severe sexual abuse and rape, solicitation of sex acts, solicitation of nude photos, entreaties for sexually inappropriate relationships, sexual comments and gestures, leering, and inappropriate touching.”

The suit alleged that some of the children were “threatened” by the employees to “maintain their silence” about the abuse. The organization was accused of “fail[ing] to take appropriate action to protect the children in its care.”

According to the DOJ, the children impacted by the alleged abuse were as young as 5 years old.

After unaccompanied minors are apprehended by Border Patrol at the southern border, they are placed with the HHS’ Office of Refugee Resettlement, which is responsible for providing humanitarian care and housing. The agency partners with several NGOs to provide these services, including Southwest Key.

As part of its partnership with the federal government, the HHS provides NGOs with grants funded by American taxpayers.

The DOJ’s complaint noted that Southwest Key is “the largest private care provider of housing for unaccompanied children in the United States.” The NGO operated 29 shelters, accommodating roughly 6,350 children.

“Between fiscal years 2015 and 2023, Southwest Key received over three billion dollars in funding from HHS,” it added.

During that period of time, the organization received complaints of sexual abuse and harassment “at the majority” of its facilities, the DOJ claimed.

In one instance in 2022, an 8-year-old girl reported that a Southwest Key youth care worker “repeatedly” entered her bedroom at night to abuse her. The worker was also accused of inappropriately touching a 5-year-old girl and an 11-year-old girl. He allegedly “threatened to kill their families if they disclosed the abuse.”

In 2019, a teenage girl passed a note to her teacher stating that a shift leader had “repeatedly raped, abused, and threatened” her.

“She reported she believed that Southwest Key employees were covering to protect the Shift Leader because, among other things, he would regularly switch assignments with other staff so that he could be alone with her,” the DOJ’s lawsuit read. “The child’s accounts were partially corroborated by video footage of the Shift Leader entering her bedroom and her journal documenting abuse. In addition, employees observed the Shift Leader’s failure to follow bedroom check policy and routinely entering the child’s bedroom (as well as entering other children’s bedrooms) for periods of time without other employees present.”

The DOJ’s complaint listed numerous other incidents of sexual abuse and harassment allegedly committed by the NGO’s employees. It is unclear how many children were allegedly subjected to the abuse.

HHS Secretary Xavier Becerra stated, “HHS has a zero-tolerance policy for all forms of sexual abuse, sexual harassment, inappropriate sexual behavior, and discrimination.”

“The U.S. Department of Justice’s complaint against Southwest Key raises serious pattern or practice concerns. HHS will continue to work with the Justice Department and oversight agencies to hold its care-giving programs like Southwest Key accountable. And we will continue to closely evaluate our assignment of children into care-giving programs to ensure the safety and well-being of every child in HHS custody,” Becerra added.

The HHS’ Administration for Children and Families declined the Daily Caller New Foundation’s request for comment, deferring to the DOJ, which also declined to comment.

Blaze News reported on the allegations against Southwest Key last week, but at that time, the NGO had not publicly commented on the lawsuit. A spokesperson for Southwest Key has since told the DCNF that it still partners with the HHS’ Office of Refugee Resettlement.

“Southwest Key Programs’ primary focus is the safety, health, and well-being of each one of the children and youth we care for,” the spokesperson told the DCNF. “We continue to review the complaint, and it does not present the accurate picture of the care and commitment our employees provide to the youth and children.”

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‘Waste, fraud, and abuse of taxpayer money’ — NGOs are making massive profits from Biden’s open border crisis: Report



Non-governmental organizations have raked in huge profits from the Biden administration’s open border crisis, according to a recent report from the Free Press.

In particular, NGOs tasked with providing services to unaccompanied minors receive substantial amounts of taxpayer funds through generous federal grants. The funds have been used by the organizations to increase the salaries of CEOs and offer services, including pet therapy, music therapy, and “people-plant interactions” or “horticulture therapy.”

The Free Press revealed that the combined revenue of three prominent NGOs — Global Refuge, Southwest Key Programs, and Endeavors, Inc. — grew from $597 million in 2019 to $2 billion in 2022. Numbers for 2023 have not yet been released. The CEOs of Global Refuge and Endeavors earn over $500,000, while the CEO of Southwest Key makes more than $1 million, the news outlet reported.

'The amount of taxpayer money [the NGOs] are getting is obscene.'

A music therapist hired by Endeavors earned $533,000 in 2021. That same year, the organization paid a hotel management company $8 million to house illegal immigrants. The NGO obtains more than 99% of its revenue from federal tax dollars, the Free Press reported.

The Department of Health and Human Services’ Administration for Children and Families, which distributes funds to NGOs, had a 250% budget increase between 2018 and 2023.

Jessica Vaughan, director of policy studies at the Center for Immigration Studies, told the Free Press that the Biden administration has increased the amount of taxpayer dollars going to NGOs. She noted that there is a “lack of accountability for performance, and the lack of interest in solving the problem.”

The news outlet revealed that Global Refuge housed 2,591 unaccompanied children with a $30 million budget in 2019. A few years later, the organization used $82.5 million and only housed 1,443 unaccompanied minors.

Global Refuge told the Free Press, “Unaccompanied children attend six hours of daily education and participate in recreational activities, both at the education site and within the community.”

Charles Marino, former adviser to Janet Napolitano, the secretary of the Department of Homeland Security during the Obama administration, told the news outlet, “The amount of taxpayer money [the NGOs] are getting is obscene.”

“We’re going to find that the waste, fraud, and abuse of taxpayer money will rival what we saw with the Covid federal money,” Marino remarked.

Endeavors declined a request for comment from the Free Press. Southwest Key Programs did not respond to a request for comment from the Daily Caller News Foundation.

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