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SANTA FE, N.M. — The Boys & Girls Clubs of Santa Fe has reached a $1.4 million settlement with the U.S. government following a long-standing dispute over unfulfilled federal grants for a facility that was never built, federal officials announced this week. Representing the organization throughout the process, Santa Fe attorney Dan Cron helped guide the nonprofit through complex negotiations and defended it against allegations of fraud.
The case stemmed from grants awarded in 2003 and 2004 by the U.S. Department of Housing and Urban Development (HUD), totaling approximately $750,000. The funds were intended for the purchase of land at 1107 Ocate Road and the construction of a new facility. However, the project was never completed, and portions of the land were later sold, allegedly in violation of federal law and the terms of the grant agreements.
According to the U.S. Attorney’s Office in Albuquerque, the organization neither built the facility nor returned the funds as required. However, Cron emphasized that the situation was the result of financial hardship, not intentional wrongdoing.
“There was no deliberate fraud or anything like that,” Cron said. “The Club fully intended to build the facility, but lawsuits dating back decades had severely affected its finances. When the land was sold, there was no attorney advising them, and the leadership at the time didn’t understand that the sale wasn’t permitted under the grant’s terms.”
Under the terms of the settlement, the Boys & Girls Clubs of Santa Fe repaid more than the original grant amount—reflecting the appreciated value of the land—and was released from any further civil or administrative claims under the False Claims Act.
Cron said the organization cooperated fully throughout the investigation and is relieved to have resolved the matter. “We’re glad this is behind us,” he added. “The Boys & Girls Clubs continue to provide essential services to families across Santa Fe and northern New Mexico.”
The U.S. Attorney’s Office, while acknowledging the organization’s cooperation, reiterated the importance of accountability in the use of federal funds. “Failure to do so violates the law and the public trust and will be vigorously pursued,” said U.S. Attorney Fred Federici in a statement.