MANDAN, N.D. — The North Dakota Attorney General has leveled serious accusations against two well-known Fargo activists, alleging they misappropriated over $100,000 in federal grant funds. The legal battle has heated up with a preliminary hearing in the South Central District, which includes Bismarck, as the funds in question were allocated by the North Dakota Department of Public Instruction.

The Attorney General’s office contends that Faith Shields-Dixon and her husband, Charles Dixon, diverted nearly $120,000 in grant money intended for a learning center near the Fargodome. The misused funds were reportedly spent on personal expenses, including “coffee or food, just typical personal expenses,” according to Scott Voeltz, an agent with the North Dakota Bureau of Criminal Investigation. The grants were specifically earmarked for educational purposes to support community educational infrastructure, yet it is alleged that “The Dixons made their profits by hiring relatives for this contract, which is against the law,” Voeltz testified at a recent hearing.

“They said we are going to provide these services by these individuals and these companies. If the Department of Public Instruction thought there was a conflict of interest, they could have not given them the grant money,” said Dane DeKrey, the lawyer for the Dixons.

The Dixons disputed the claims, arguing that they were transparent in their disbursements. The couple’s attorney, Dane DeKrey, emphasized that they had pointedly informed the DPI about who would be paid and that auditors should have visited under proper warrants rather than just dropped in randomly.

“We’ve toured Faith for Hope, we’ve been there, unlike the state, we’ve seen all the infrastructure that is there. They could have been there under a search warrant and seen where a significant amount of money has been spent on this grant. Just because the grant did not work out the way Faith and Charles anticipated does not make it a criminal activity,” DeKrey argued in court.

The case draws parallels to several high-profile instances of grant misuse across the country. In Texas, for instance, an educational charity was shut for diverting over $600,000 in federal funding for the purchase of luxury cars and real estate. In a similar vein, New York federal funds were misappropriated by a nonprofit for nutritional programs, which opened up a scandal that saw top officials stepping down. North Dakota’s Officer Bobbi Weiler emphasized the stern approach toward cases involving misuse of federal funding:

“If someone is using money they get from the state, it’s grounds, legally, to be charged under this statute”

The misappropriation of federal grant funds is a growing concern across the country. Hiroshi L Emily Vice President and Senior Analyst of The Northeast-Midwest Institute has stated, “The enforcement of federal rules across state lines could be bolstered by regular audits and increased transparency, appropriate channelization of funds targeting critical upbringing and growth areas; encouraging ethical practices within NGOs, schools, universities, and similar organizations aimed at reforming educational infrastructure.”

The hearing shed light on the stark contrast between the expected and actual enrollment figures. The Dixons had projected around 350 children using the center annually, yet only 17 were enrolled, as reported by the BCI. Although DeKrey pointed out that investigators visited during school hours rather than after school, the judge refused to dismiss the case. North Dakota District Court Judge Bobbi Weiler emphasized that “if someone is using money they get from the state, it’s grounds, legally, to be charged under this statute.” As a result, the Dixons now each face up to a decade in prison if convicted on the theft charges. Both pleaded not guilty, and their trial is scheduled for April.