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flag Nebraska auditor calls nonprofit's use of $142K in federal funds a "fiscal train wreck," citing widespread mismanagement and misuse.

flag Nebraska State Auditor Mike Foley declared the Karen Society of Nebraska a "fiscal train wreck and disgrace" after an audit found it likely misused over 99% of $142,752 in federal grant funds from July 2023 to December 2024. flag The report revealed widespread issues, including unverified contractor payments, lack of documentation, and $23,544 paid for overlapping work hours while executive director James Knyawhtoo held a full-time tech job. flag The nonprofit made mortgage payments on a Lincoln property owned by Knyawhtoo, transferred $18,900 to an unknown PayPal account, and conducted $14,649 in unexplained Western Union transactions. flag Auditors found no board approvals, no tax filings, and Knyawhtoo ceased cooperating. flag Foley referred the case to prosecutors, calling the misuse of funds a betrayal of taxpayer trust.

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