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Brian Bakst
St. Paul

Ex-nonprofit CEO Davis agrees to pay $387K in fraud case

Bill Davis
Bill Davis
Leila Navidi | The Star Tribune via AP 2014

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Bill Davis pleaded guilty in June to charges he spent taxpayer grants meant to aid low-income Minneapolis residents on a personal car, exotic trips and other perks while he ran Community Action of Minneapolis.

On Monday, a court filing revealed that Davis has agreed to pay restitution to Community Action, as well as to the group's insurer and health plan. He agreed to pay a total of $387,064, with more than $100,000 of that going back to the nonprofit.

Davis admitted to using Community Action dollars to buy and deck out a car, to travel to the Bahamas with his girlfriend, to travel to an out-of-town wedding and to attend a Democratic Party function in Puerto Rico. He also said he falsely claimed to be married to get health insurance through the agency for his then-fiancé.

The public money was supposed to go to help low-income Minneapolis residents with heating costs, career assistance and other vital services. Investigators have said Davis may have taken upwards of $350,000 over the years for personal use, but auditors documented far more overall misspending at the agency.

In late January, a judge sentenced Davis' son, former Minneapolis police officer Jordan Davis, to two years in prison for his role in defrauding Community Action of Minneapolis.

Jordan Davis had managed a Ben & Jerry's ice cream shop in Minneapolis funded by the nonprofit from 2002 to 2006. Prosecutors said he left after that to become a Minneapolis police officer but still received payments from the nonprofit totaling $140,000 over four years for what was a "no-show" job at the ice cream shop.