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May 05, 2015

Former Nonprofit Head Gets 3 Years for $4 Million Fraud

A former charity leader was sentenced Monday to a little more than three years in prison for stealing $4 million that prosecutors said should have gone into financial aid for poor Native American students, The Oregonian reports. Brian J. Brown, ex-president of Texas-based National Relief Charities, was arrested in October 2013 and convicted late last year of money laundering and conspiring to commit mail and wire fraud.

According to prosecutors, Mr. Brown left his post at National Relief Charities in 2005 and induced his former employer to endow Charity One Inc., a new nonprofit he set up in Beaverton, Ore., that did business as the American Indian Education Endowment Fund. Money sent to the new group from 2006 to 2009, ostensibly for scholarships, instead went to Mr. Brown and a co-conspirator who served on the National Relief Charities board, authorities said.