* US Attorney press release…

The head of a Chicago not-for-profit organization fraudulently converted or misappropriated at least $200,000 in State of Illinois grants intended to develop suburban commercial properties and fund a job training program, according to a 15-count federal indictment.

YESSE YEHUDAH operated the not-for-profit organization Fulfilling Our Responsibilities Unto Mankind, also known as FORUM. From 2013 to 2016, Yehudah, on behalf of FORUM, applied for and received three grants totaling approximately $575,000 from the Illinois Department of Commerce and Economic Opportunity. Two of the grants were intended to develop commercial properties in south suburban Dolton, while the third was meant for FORUM to operate a weatherization jobs training program. The indictment alleges that Yehudah fraudulently converted substantial quantities of the grant funds by making materially false statements and submitting false documents to the DCEO. The indictment describes several of the alleged false statements, including when Yehudah represented to the DCEO that FORUM had spent almost all of a $100,000 grant on construction work, when, in fact, no actual construction work had begun. […]

In addition to the alleged fraud in obtaining the DCEO grants, the indictment accuses Yehudah of scheming to defraud a bank. After FORUM received similar development grants from the DCEO and other federal and local agencies, including the U.S. Department of Housing and Urban Development and the Community and Economic Development Association of Cook County, Yehudah issued checks from FORUM and another entity he controlled to various subcontractors, the indictment states. Yehudah then forged the subcontractors’ signatures – without their knowledge – to endorse the checks over to himself, the indictment alleges.

The indictment is here. It’s the first political-related indictment since the pandemic kicked into high gear.

* Sun-Times…

In 2002, Yehudah was named in a lawsuit filed by then-Attorney General Jim Ryan after the Chicago Sun-Times reported accusations of misspent agency funds that also involved Yehudah’s FORUM charity. The lawsuit accused Yehudah and David Noffs of improperly spending charity money on an alleged kickback scheme. Noffs was a friend of then-Illinois First Lady Lura Lynn Ryan.

* Jason Meisner at the Tribune…

Reached by telephone on Thursday, Yehudah acknowledged that the FBI had questioned him about FORUM’s Dolton projects but said he didn’t know anything about any misappropriated funds.

He declined further comment, saying he was unaware that criminal charges had been filed and had yet to retain an attorney.

As the leader of FORUM, Yehudah has long had ties to South Side politicians and legislators in Springfield, using his connections to win taxpayer-funded grants for everything from youth violence prevention to computer-literacy programs.

Just about everybody who is anybody on the South Side knows Yehudah. We’ll see if this goes anywhere else.