Sherrard woman faces fraud, theft charges from nonprofit organization

Publish date: 2024-02-29

Suspect created fake invoices to get money from SCRA, authorities allege

A 45-year-old Sherrard woman faces multiple felony charges after the Iowa Division of Criminal Investigation alleges she created fake invoices to get money from a nonprofit organization that supports the community through grants.

Angela E. Arnold-Nelson faces four charges of first-degree fraudulent practice, a charge of first-degree theft and two charges of second-degree theft, court records say.

According to court records, on Oct. 26, 2022, an agent with the Iowa Division of Criminal Investigation received an email from the Scott County Regional Authority (SCRA) Board regarding an expense validation issue with the Epilepsy Foundation of Moline. (SCRA is a non-profit corporation that provides funding to educational institutions, government, civic, and not-for profit organizations through a grant process. These funds are generated from gaming receipts through the Isle Casino Hotel Bettendorf.)

A SCRA representative said the Epilepsy Foundation appeared to be creating fake invoices to receive grant funds from SCRA, the agent alleges in court documents. The SCRA grant
administrator was in communication with Angela E. Arnold Nelson about issues with submitted invoices.

Arrest affidavits say Nelson was serving as executive director of the Epilepsy Advocacy Network in Moline. A SCRA representative said Nelson responded to SCRA addressing the issues and concerns the SCRA had. The SCRA representative explained the SCRA Board “didn’t feel comfortable” continuing communication with Nelson and the Epilepsy Advocacy Network after reading the email and wanted to turn the information over to the Division of Criminal Investigation.

According to affidavits, on Nov. 29, 2022, a review of open-source and inquiries through subscription-based law enforcement databases was performed. Affidavits show that a review of the information led to a bank account named Passion Pursuit Inc. Epilepsy that was opened at IH Mississippi Valley Credit Union in Moline.

On Dec. 9, 2022, the agent alleges in court documents that he contacted a Scott County assistant attorney about this case. A county attorney subpoena was requested through the three credit bureaus and IH Mississippi Valley Credit Union to try to locate bank accounts and possible fraudulent transactions being done by Nelson, according to affidavits.

During a review of bank statements for Epilepsy Advocacy Network and Passion Pursuit Inc. Epilepsy, a number of purchases and transfers were made by Nelson during the years 2019, 2020, 2021 and 2022, affidavits say:

2019 and 2020 purchase/withdraw summary. Total – $49,825.61

2021 and 2022 purchase/withdraw summary. Total – $5,105.23

2019, 2020, 2021 and 2022 Deposits into Passion Pursuit Epilepsy account Total – $85,397.49

During the review of the Passion Pursuit Inc. Epilepsy account and subpoena information, it was found that another account was opened on Oct. 18, 2019, affidavits say. This account was named Epilepsy Advocacy Network. In 2019 and 2020, Nelson made three online transfers from the Epilepsy Advocacy Network into the Passion Pursuit account for a total of $20,011.96.

In 2020, Nelson deposited $26,091.55 via online transfer from the Passion Pursuit account into the Epilepsy Advocacy Network account. The Epilepsy Advocacy Network received about $26,103.51 of the $85,397.49 that was deposited from 2019-2022, according to affidavits.

During the Investigation it was found that four fraudulent invoices were submitted to SCRA to receive funds by Nelson. Two fraudulent invoices created by Nelson from Girl Scouts of Eastern Iowa and Western Illinois were for $18,795 and $13,775. One fraudulent invoice created by Nelson was for $3,805.49 from Performance Food Service, and another fraudulent invoice created by Nelson was for $2,775.21 from One Step. Each of these Invoices were created to receive funds from SCRA, arrest affidavits show.

Arnold-Nelson, who was released from Scott County Jail on bond Wednesday, is set for a Scott County Court appearance on June 30.

Nelson was a finalist in the 2022 Remarkable Women of the Quad Cities contest.

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