Drew Jenkins attempted to illegally extract over $100,000 of public money with fake invoices, double billing, and frivolous reimbursements
SAN FRANCISCO (February 27, 2024) — City Attorney David Chiu announced today that he initiated debarment proceedings against, and immediately suspended, Drew Jenkins, Susan Murphy, and J&J Community Resource Center, preventing them from bidding on or receiving City contracts or grants. A joint investigation with the Controller’s Office revealed that Jenkins and affiliates had defrauded the City by routinely submitting false invoices, double billing under multiple grants, and seeking reimbursement for ineligible expenses like alcohol, cigars, and motorcycle rentals.
“Drew Jenkins carried out an egregious and intentional scheme to defraud the City and its taxpayers,” said City Attorney Chiu. “Let this be a warning to all bad actors seeking to take advantage of our public resources. We will find out about your misdeeds, cut off your funding, and hold you accountable. I appreciate the partnership of the Controller’s Office on these matters, and the many City and nonprofit employees who spoke up about the wrongdoing they were seeing.”
“Contractors who willfully disregard regulations are a blight on public service and should not have the same opportunities as those who abide by the rules of fair conduct,” said Controller Ben Rosenfield. “For every individual trying to rig the system, there are many more hardworking people doing good work — whose willingness to call out bad actors has been both invaluable, and an indication of government working.”
Background
J&J Community Resource Center is a San Francisco-based nonprofit, incorporated in 2018 by Jenkins and his late mother, with the stated mission to “gather and provide information and direct public benefit services to youth and disadvantaged families.” Drew Jenkins has served as either the Executive Director or Chief Executive Officer of J&J since its inception.
Over the past several years, J&J has received public grant funding as either a direct grantee or a subcontractor from four City departments:
- The Human Right’s Commission (HRC) provided direct grant funding to J&J through the Dream Keeper’s Initiative Community Innovations grant.
- The Department of Public Health (DPH) provided grant funding to the local non-profit FACES SF through the Department’s COVID-19 Outreach grant. FACES SF hired J&J as a subcontractor.
- The Mayor’s Office of Housing and Community Development (MOHCD) funded two grants that support J&J’s Annual Family Day community event.
- MOHCD provides grant funding to the affordable housing non-profit Mercy Housing through its Sunnydale Youth Center grant. Mercy Housing hired J&J as a subcontractor. In addition to grant funding for the execution of Family Day, Jenkins received a salary at Mercy Housing funded by a City grant from MOHCD.
- MOHCD provides grant funding to the non-profit Boys & Girls Clubs of San Francisco through its Learning with Community – Sunnydale grant. The Boys & Girls Clubs of San Francisco hired J&J as a subcontractor.
- The Office of Economic Workforce Development (OEWD) provides grant funding to Mercy Housing for the Economic Vitality Hub and Neighborhood Job Center. Mercy Housing hired J&J as a subcontractor.
In instances where J&J was a subcontractor, Jenkins would submit expenses to the primary grantee, which would approve Jenkins’ reimbursement invoices and then request the approved expenses from the City department as a line item in a larger expense request.
Beginning in 2021, Jenkins sought to illegally extract at least $100,000 from the City through a repeated combination of fabricated invoices, double billing, and reimbursement for ineligible expenses.
False Invoices
As an employee of Mercy Housing, Jenkins was responsible for receiving and approving invoices submitted directly to Mercy Housing from vendors seeking reimbursement for services provided or items purchased related to the Sunnydale Youth Center. This gave Jenkins access to a plethora of legitimate vendor invoices that he could copy or alter.
In 2021, Susan Murphy served as J&J’s Secretary, and since January 12, 2023, has served as J&J’s Chief Financial Officer and Secretary. During the same period, Susan Murphy was employed at FACES SF and approved over 20 fabricated invoices that Jenkins submitted to FACES SF for reimbursement under the DPH COVID grant.
Jenkins submitted invoices for payment from two different catering companies. Jenkins was personally billed by one catering company to provide meals for a private event and received invoices from another catering company as part of his official duties at Mercy Housing. He took the original invoices and altered them to appear to be food purchases for vaccination and staff events. Jenkins submitted the fake invoices to FACES SF under the DPH COVID grant, and Murphy approved them.
Jenkins and Murphy hired Abbey Party Rents to provide party rental equipment for a J&J event that was unrelated to FACES SF and the DPH COVID grant. The original invoice from Abbey Party Rents was for $312 for table and chair rentals and shows it was ordered by Susan Murphy for pick up by “dru.” Jenkins copied the original invoice, altered it, increased the total to $762, and submitted the fake invoice to FACES SF under the DPH COVID grant. Murphy, on behalf of FACES SF, approved reimbursement of the fake Abbey Party Rents invoice submitted by J&J knowing it was fake because she placed the original order with Abbey Party Rents.
Also, Jenkins submitted six false invoices to FACES SF under the DPH COVID Grant seeking reimbursement for personal protective equipment (PPE) allegedly distributed to Sunnydale residents. The invoices falsely indicated that the PPE was purchased from the San Francisco Housing Authority, but the Housing Authority has never sold PPE to non-profit organizations like J&J.
Altogether, J&J unlawfully received $81,111 under the DPH COVID grant, which is approximately 23 percent of the $350,000 total sub-grant from FACES SF to J&J.
Mercy Housing and FACES SF cooperated fully with the City’s investigation, and neither is subject to the sought-after debarment or the order of suspension. Jenkins is no longer employed by Mercy Housing, and Murphy is no longer employed by FACES SF.
Double Billing
J&J puts on an annual community event called Family Day in the Sunnydale neighborhood. Portions of the funding for Family Day come from MOHCD through two grants—one to Mercy Housing and the second to the Boys & Girls Clubs of San Francisco. Under these grants, subcontractor J&J was to receive a lump sum to cover staffing and expenses.
In addition to receiving legitimate reimbursements for Family Day under the two MOHCD grants, Jenkins submitted the same Family Day expenses for reimbursement to FACES SF under the DPH COVID grant. These reimbursements included entertainment costs, promotional attire, and food. This double billing resulted in Jenkins receiving funding twice for the same expenses from multiple City departments.
Family Day expenses were not eligible for reimbursement under the COVID grant and had no reasonable connection to reducing transmission of COVID-19. Murphy approved many of these invoices as a FACES SF employee.
Jenkins also sought to use the HRC grant to help pay for Family Day expenses like furniture rentals and stage and sound equipment.
The Boys & Girls Clubs of San Francisco cooperated fully with the City’s investigation, and is not subject to the sought-after debarment or the order of suspension.
Ineligible Expenses
HRC provided direct grant funding to J&J for a program called Locked Tight, a violence prevention program in the Sunnydale neighborhood. Under the terms of the HRC grant, expenses related to meals and transportation are specifically excluded, but Jenkins sought reimbursement from the HRC grant for these ineligible expenses. Jenkins sought reimbursement for a bottle of bourbon and cigars purchased from a liquor store in Atlanta during a college tour trip. He also sought reimbursement for motorcycle rentals in Lake Tahoe.
Jenkins also billed ineligible expenses for autocycle and e-bike rentals to the DPH COVID grant and MOHCD Youth Center grant.
Debarment and Suspension
Debarment is an administrative enforcement procedure that authorizes the City to ban contractors from applying for or receiving City contracts or grants for up to five years. Individuals or business entities are to be debarred upon a finding of “willful misconduct” with respect to any grant or contract. J&J, Jenkins, and Murphy submitted false claims in violation of the San Francisco Administrative Code and the California False Claims Act. This constitutes willful misconduct and is grounds for debarment.
Along with the Counts and Allegations seeking debarment, City Attorney Chiu submitted an Order of Suspension against J&J, Jenkins, and Murphy. The Order of Suspension is effective immediately and prevents these entities from receiving City funding. The suspension will be in place until the debarment proceeding is resolved. Immediate suspension is warranted here because the violations of civil law are against a government entity and are relevant to the Contractor’s ability or capacity to honestly perform services.
The Order of Suspension and Counts and Allegations Seeking Debarment against J&J Community Resource Center, Drew Jenkins, and Susan Murphy can be found here.
The list of entities unable to participate in contracting with the City and County of San Francisco is posted here.
Tips
Any member of the public may report allegations of improper or illegal public activity to the City’s Whistleblower Program at sf.gov/whistleblower-program. That program, administered by the Controller’s Office, often partners with the City Attorney’s Office on investigations.
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