DOVER, Del. - An organization, whose mission is to help those suffering from homelessness, abuse, financial struggles and addiction is now under investigation.
Code Purple, Kent County, is being investigated for potential fraud and misuse of government funds. Attorney General Kathy Jennings sent a letter to the Prescription Opioid Settlement Distribution on Friday, June 28. In the letter, Jennings stated Attorney General's across the country, including two in Delaware, worked for nearly a decade to secure funding to combat the opioid epidemic.
The first state received roughly $250 million. She continued to share that she, along with others, have asked repeatedly to develop a "thoughtful plan of action, including a plan for auditing and accountability" for current and future funds.
Jennings provides a timeline in the letter which begins on Feb. 27, 2023 where she said she asked that the Commissions March meeting be postponed in order to give them time to review applications more thoroughly.
At a May 31, 2023 meeting, The Governance Committee discussed oversight, including auditing and assessing grants according to measurable goals. Jennings wrote that the Opioid Fund Program Director Susan Holloway states that she had created a dashboard to track services provided and individuals served.
A letter from State Auditor Lydia E. York was sent to AG Jennings on Wednesday, June 12 to "bring a matter of urgent concern" to her attention. The Office of Auditor of Accounts was set to conduct a performance audit of the grant money distributed to Code Purple Kent County (CPKC).
York said the audit team was unable to obtain sufficient appropriate audit evidence and decided to formally withdraw from the performance audit engagement. York stated the team encountered significant challenges in establishing trust regarding the accuracy and authenticity of the documents provided by CPKC, despite their best efforts.
The preliminary analysis suggests potential waste, fraud and abuse of state resources, including indications of fraudulent grant submission. York noted that CPKC received nearly $1 million in additional state funding over the last two years. The Delaware Controller General was alerted, as she oversees Grant-In-Aid disbursements, as well as the Lieutenant Governor, as she is the Prescription Opioid Distribution Commission co-chair.
AG Jennings has referred the matter to the Department of Justice's White Collar Crime Unit for criminal investigation. The DOJ's Civil Division has been directed to explore all options to reclaim the funds that have already been disbursed to the organization.
The portion of the report that references "fraud findings" is part of a criminal investigative file and can not be released while the investigation is pending.