United States Attorney Richard B. Roper
Northern District of Texas

PAUL QUINN COLLEGE BOARD MEMBER/TREASURER CHARGED
WITH EMBEZZLEMENT AND THEFT FROM THE COLLEGE

DALLAS — James L. Fantroy, Sr., a former member of the Board of Directors and Treasurer of Paul Quinn College Community Development Corporation (Paul Quinn CDC) in Dallas, is charged in a federal indictment, returned by a grand jury in Dallas last week and unsealed today, with one count of embezzlement and theft from a program receiving federal funds, announced U.S. Attorney Richard B. Roper of the Northern District of Texas. Fantroy is expected to surrender to federal authorities today.

According to the indictment, in 1998, the U.S. Department of Housing and Urban Development (HUD) approved Paul Quinn College for a $250,000 Historical Black Colleges and Universities (HBCU) grant. The college hired Paul Quinn CDC to assist in administering the grant, which included the revitalization of the college’s surrounding area. Paul Quinn College entered into a real estate management agreement with Paul Quinn CDC establishing Paul Quinn CDC as the manager of the Highland Hills Shopping Center, a property owned by Paul Quinn College. It required Paul Quinn CDC to deposit all rental receipts it collected, less any sums properly deducted or otherwise provided for in the agreement, into a trust account for the benefit of Paul Quinn College.

From August 2000 through June 7, 2002, Paul Quinn College received eight disbursements totaling approximately $222,853 from HUD, pursuant to the HBCU grant. During the one year period beginning April 1, 2003, Paul Quinn College received funds from a second HBCU grant, totaling more than $10,000.

The indictment alleges that from April 26, 2003, through July 30, 2003, James L. Fantroy, Sr., acting as an agent for Paul Quinn College, embezzled $5000 or more in federal program monies held in trust for Paul Quinn College.

An indictment is an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted, Fantroy faces a maximum statutory sentence of 10 years in prison, a $250,000 fine and restitution.

The investigation was conducted by the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development, Office of Inspector General . The case is being prosecuted by Assistant U.S. Attorney Marcus Busch.

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