Minnesota Crime Prevention Nonprofit Hit with Lawsuit Over Alleged $6.5 Million Diversion for Personal Luxuries and Business Ventures

Yet another major fraud case has surfaced in Minnesota under Governor Tim Walz, centering on a nonprofit dedicated to preventing crime that is now accused of misusing more than $6.5 million in taxpayer-supported charitable funds. The money allegedly funded luxury vehicles, extravagant trips to Las Vegas, child support obligations, and the founder’s private for-profit enterprises.

Minnesota Attorney General Keith Ellison has filed a civil lawsuit against the organization We Push for Peace, its founder Trahern Pollard, and former director Jaclyn McGuigan. The suit claims the group, which was intended to help curb violence in Minneapolis, was instead run as a personal slush fund by its leaders.

Court documents allege that Pollard, who established the nonprofit in 2016, along with McGuigan, funneled over $6 million straight into Pollard’s own pockets. Among the reported expenditures were high-end vacations in Las Vegas, payments disguised as “organizational overhead” to cover Pollard’s child support, direct subsidies for his for-profit liquor store (Merwin Liquors in north Minneapolis) and used-car dealership operations, purchases of luxury vehicles including Harley-Davidson models, and a questionable $35,000 payment labeled as “Chicago Payroll” that actually went to Pollard’s associates.

Pollard is further accused of tapping nonprofit resources to settle his personal IRS tax debt and prop up his separate business interests. McGuigan, serving as the group’s treasurer, reportedly funneled a steady $1,000 per week into her personal bank account and diverted additional thousands in public grant money by claiming it was needed for “administrative” costs.

“Instead of helping the community, they helped themselves to millions of dollars that should have gone into the community,” Ellison stated in a release announcing the action.

The lawsuit also highlights the nonprofit’s failure to deliver when the City of Minneapolis sought its assistance during Operation Metro Surge, a large-scale Homeland Security initiative. By that point, the once well-funded organization was reportedly unable to respond effectively.

As state investigators closed in, Pollard is said to have submitted sworn statements containing falsehoods—such as labeling child support payments as legitimate nonprofit expenses and describing the $35,000 transfer to friends as routine “Chicago payroll.” In a last-minute attempt to account for the missing funds, he allegedly rushed to create a fictitious for-profit subsidiary of the charity just days after the attorney general’s office began making inquiries.