Executive Director of Non-Profit Arrested, Accused of Taking More Than $500,000 of Grant Funds Intended to Help At-Risk Youths

WASHINGTON—Keely E. Thompson Jr., 45, executive director of Keely's District Boxing and Youth Center, was arrested today by agents from the FBI and D.C. Inspector General's Office and charged in a criminal complaint with wire fraud. He is accused of taking approximately $506,000 in public funding since 2004 and using the money for gambling and other personal expenses.

The arrest was announced by U.S. Attorney Ronald C. Machen Jr., James W. McJunkin, Assistant Director in Charge of the FBI's Washington Field Office, and Charles J. Willoughby, Inspector General for the District of Columbia.

According to the affidavit filed in support of the arrest warrant, Keely's District Boxing and Youth Center is a non-profit organization that has received more than $1.4 million in District of Columbia government funding since 2004. The money was to be used to provide youth development and physical fitness programs to at-risk children between the ages of 8 and 18.

Instead, Keely took approximately $506,000 for his own personal benefit, the affidavit states. The affidavit notes that a bank record analysis revealed that Keely used the organization's debit card to obtain more than $150,000 cash while on several cruises or at Bally's casino in Atlantic City. In addition to a yearly salary that grew from $46,000 in 2004 to $81,000 in 2009, the affidavit says, Keely received 127 checks, totaling $355,210. The organization's accounting records did not identify a legitimate purpose for these additional payments and when asked by financial professionals, Keely failed to provide supporting documentation, the affidavit states.

Today's arrest followed an investigation by the FBI's Washington Field Office and the D.C. Inspector General's Office. Assistant U.S. Attorney Susan Menzer is prosecuting the case.

Keely, of Accokeek, Md., appeared this afternoon in U.S. District Court for the District of Columbia. Magistrate Judge Alan Kay released him on personal recognizance and scheduled a preliminary hearing for December 9, 2010.

Charges contained in criminal complaints are merely allegations that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.