October 31, 2014
SACRAMENTO, Calif. (AP) - Federal prosecutors have reached a settlement with Sacramento, Calif., Mayor Kevin Johnson over misspending by a nonprofit corporation he started after retiring from the NBA in 2000.
Spokesmen for the U.S. Attorneys office in Sacramento and for Johnson did not immediately disclose details of the agreement Thursday.
Johnson's volunteer program, Hood Corps, received $807,000 from the federal AmeriCorps program between 2004 and 2007.
Federal investigators say some of the money was used to pay volunteers for political activities, run personal errands and wash Johnson's car.
Thursday's settlement should make the California capital eligible for millions of dollars in stimulus money and other federal grants. Johnson was barred from receiving federal money.