107-288 (38 USC 4215(a)); have low employment prospects; have failed to find employment after using services provided under the Workforce Innovation and Opportunity Act (WIOA) of 2014 (Public Law 113-128); are homeless or at risk for homelessness; or are formerly incarcerated or on supervision from release from prison or jail within five years of the date of initial eligibility determination.
The report details the use of unrestricted and accrued annual leave to cover a $1.6 million grant overspend, which $1.4 million was used to pay participant wages and fringe benefits, the misuse of federal funds to cover activities including first-class travel, pet hotels, fruit bouquets, personal loans to the CEO, and frequent credit card use on entertainment and prohibited lobbying.
[5] In 2016, the U.S. Department of Labor issued a follow-up report critical of current management for not taking any corrective actions to restore funds.
[6] As a result, the U.S. Department of Labor has revamped the funding for SCSEP and the Inspector General has expanded the investigation into the activities of the previous management.
The whistleblower, later self-identified as Paul DelPonte, was granted federal protection and was appointed head of the National Crime Prevention Council in 2021.
In September, 2016 the Inspector General issued a preliminary report describing the organization as financial insolvent and took steps to curtail and eliminate federal funding.