By STEPHEN Di BENEDETTO | Northwest Herald
ROCKFORD – The director for a Crystal Lake nonprofit lauded for its work with homeless and disabled veterans was indicted Tuesday by a federal grand jury for defrauding veterans, businesses and the federal government.
The charges focus on NASA Education’s securing of government contracts, and the company’s relationship with Liberating Solutions, a Crystal Lake business that has done contract work for federal and local governments.
Blanchard did not return calls Tuesday seeking comment.
The indictment did not surprise leaders of some McHenry County veterans groups. Alan Belcher, executive director for Traditional Living Services, a group similar to NASA Education, said he had heard rumors for years of NASA Education’s mismanagement of veterans.
“In this time of limited money and people struggling to meet ends meet, we have someone that appears to be taking advantage of the federal government ... and not taking care of the veterans out there,” Belcher said. “It’s extremely upsetting to me.”
Mary Margaret Maule, founder of the Voices of Veterans writing group at the Lake-McHenry Veterans Drop-In Center in McHenry, said she also had heard rumors of questionable business practices and wasn’t shocked by the indictment.
“It’s a shame that anybody would take advantage of funds that were dedicated to people who dedicated themselves to their country,” Maule said.
Representatives of other veterans organizations couldn’t be reached for comment Tuesday night.
The indictment alleges that NASA Education and Liberating Solutions falsely represented Liberating Solutions as a “service-disabled veteran-owned business,” the U.S. Attorney for the Northern District of Illinois said in a news release.
Under federal law, a business gets preferential consideration for certain government contracts when the company is majority-owned and operated by a veteran who was injured or disabled during active duty.
According to its website, Liberating Solutions works with NASA Education’s “Fresh Start Program,” which trains and places homeless or disabled veterans with companies. Liberating Solutions has done event planning, construction and landscaping work, and has worked with the Army, Air Force and the city of O’Fallon, its website states.
he indictment also charges that Blanchard and the four other defendants failed to pay legally required wages to veterans for work under federal and local contracts.
It further charges the defendants with fraudulently keeping excess federal grant funds related to NASA Education’s semi-annual “Stand Down” event. The event provides veterans throughout the suburbs with food, clothing, consultation and networking opportunities.
The U.S. Labor Department sponsors the event to the tune of $10,000 and requires receipts for costs. The indictment alleges NASA Education falsely claimed that Liberating Solutions incurred certain expenses.
An invoice claimed that a company called “Bull Dog Security” provided security for the Stand Down event, when in fact unpaid veterans provided the security, the news release said.
The others charged in the indictment are Blanchard’s wife, Joanne Blanchard, who managed NASA Education’s finances; Blanchard’s brother, James Blanchard, who was project manager for Liberating Solutions; and Eric R. Behler, and Amy B. Johnson.
Behler is listed as a contract officer for Liberating Solutions. Johnson, the government said, oversaw NASA’s Education Fresh Start program.
Johnson also did not respond to calls for comment.
John Blanchard, a Navy veteran, started NASA Education Corp. in 1998, and soon after started its Project Fresh Start program.
Blanchard has received community recognition for NASA Education. In 2008, Tammy Duckworth, then-director for the state veterans department and now the Democratic congressional candidate in Illinois’ 8th District, presented Blanchard with an award given to veterans who inspire their community through continued service.
In the same year, the McHenry County Economic Development Corporation recognized Blanchard for his work with NASA Education.
http://www.nwherald.com/2012/08/22/feds-indict-crystal-lake-veterans-advocate/a1tap8m/?page=1
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