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September 30, 2014

Minn. Nonprofit Shuts Down After Offices Raided by State

A Minneapolis social-service charity accused in a recent state audit of misspending hundreds of thousands of taxpayer dollars abruptly closed its doors Friday after state officials raided its downtown office, seizing financial records and computer hardware, the Star Tribune reports.

The search and shutdown capped a dramatic week that saw several high-profile local politicians quit seats on Community Action of Minneapolis' board after the newspaper reported on auditors' allegations that Community Action misspent more than $800,000 in taxpayer money on questionable expenses, including trips to spa resorts and a car loan for its CEO, Bill Davis.

The charity had for decades provided government-financed weatherization, heating assistance, and other help for low-income Minneapolis residents. Mr. Davis, who last week defended the charity's fiscal management, arrived at its offices as the raid was taking place but declined to comment.