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Senior Director of Strategic Alliances
LexisNexis Risk Solutions - Government

The American Rescue Plan Act (ARP) should not be confused with the COVID-19 Coronavirus Aid, Relief and Economic Security Act (CARES). The CARES Act provides funding in direct response to the emergency situation caused by the COVID-19 pandemic, such as medical needs and employment interruptions for everyone. The ARP Act provides funding to create a more equitable recovery for those in true need due to the pandemic. Not confusing at all, or the very least, not confusing for fraudsters. During the pandemic, local governments across the country were literally awash in money from the ARP Act. Anchorage city leaders had $50 million to hand out to local applicants, and the money was handed out fast. Fraudsters like fast money.

Anchorage gave one of its biggest pandemic relief grants, $1.6 million, to Rasalina Magaeva’s nonprofit House of Transformations. Despite the state having investigated Magazeva in 2015 for alleged fraud and permanently banning her from providing services as a Medicaid provider. As a result, Maveaga’s business can no longer bill any federal health care program. That did not deter Maveaga from cultivating other opportunities that can be funded with federal money. And her actions are proving to be suspicious. The IRS is seeking information about city grants awarded to Mavaega and her affiliated businesses since 2021.

In 2021, Mavaega asked the city of Anchorage for more than $1.6 million under the business name of the House of Transformations and another of her businesses, Signet Ring. The Assembly awarded the money in May 2021 for the purpose of providing housing, addiction treatment, vocational and apprenticeship training, and other wrap around services for persons experiencing homelessness. The money made Mavaega’s nonprofit one of the biggest recipients in the first round of ARPA grant awards from the city. The House of Transformations business received more than city agencies such as the fire and police departments, and it received the 13th overall largest grant out of the 64 awarded.

Shout out to the Internal Revenue Service for initiating this investigation.

Today’s Fraud Of The Day is based on article “Anchorage gave her a $1.6 million grant despite prior fraud allegations. Now she’s under investigation again” published by Anchorage Daily News on June 1, 2023

Two years ago, in May 2021, the Anchorage Assembly gave $1.6 million to a little-known charity that said it would help people find homes and addiction treatment during the COVID-19 pandemic.

At the time, local governments across the country were awash in money from a federal program known as the American Rescue Plan Act, or ARPA. Anchorage city leaders had $50 million to hand out to local applicants, and the money moved fast. The nonprofit House of Transformations received one of the largest awards.

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