Prosecutors Reach Settlement with Sacramento Mayor

By: Don Thompson AP
By: Don Thompson AP

SACRAMENTO (AP) - Sacramento Mayor Kevin Johnson says a settlement with federal prosecutors will allow Sacramento to receive millions of dollars in federal stimulus money.

A nonprofit started by the former NBA All Star had been under investigation for misusing federal grants. That led Johnson to be included on a list of those prohibited from receiving federal money, raising questions about whether California's capital city would benefit from the stimulus package.

Federal prosecutors announced a settlement in the case on Thursday.

In a statement, Johnson said the settlement "closes the chapter" on whether Sacramento will be able to continue receiving federal money.

It requires Johnson's St. HOPE Academy to repay nearly $425,000 in return for the government lifting its suspension on future federal grants.

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