CEO accused of using money from Cincinnati nonprofit for personal expenses

CEO accused of using money from Cincinnati nonprofit for personal expenses
The Department of Justice says Barry Rene Isaacs, 34, the CEO and President of the nonprofit of Hope 4 Change, allegedly used thousands of dollars for personal expenses instead of paying over payroll taxes to the IRS. (Source: Butler County Sheriff's Office)

CINCINNATI (FOX19) - The founder, owner, CEO and president of a Cincinnati nonprofit allegedly used thousands of dollars for personal expenses instead of paying payroll taxes, according to the Department of Justice.

Barry Rene Isaacs, 34, of Cincinnati, was arraigned in federal court on Monday.

Isaacs allegedly used funds from Hope 4 Change to pay for clothing, massages, beauty care, travel and personal vehicles for him and his family, a news release from the DOJ states.

Hope 4 Change provided housing and care for adults with developmental disabilities, drug addiction problems, and mental disorders. The agency employed between 120 and 180 people in 2013 and 2014.

According to the indictment, Hope 4 Change withheld FICA taxes from its employees’ paychecks but did not pay employment taxes to the IRS for five quarters in late 2013 and 2014.

The DOJ says Isaacs is charged with five counts of willfully failing to pay over employment taxes, one count of obstructing justice, two counts of falsely representing a social security number and one count of aggravated identity theft.

Isaacs was arrested by U.S. Marshals in Texas on Jan. 30. He is currently in the Butler County Jail.

Teela Gilbert, 34, of Cincinnati, Hope 4 Change’s vice president, “student affairs” director and office manager has also been charged with obstructing justice in connection with the investigation of the tax fraud, according to the DOJ.

Copyright 2020 WXIX. All rights reserved.