The Office of Inspector General for the Legal Service Corporation (LSC) recently completed a significant investigation involving a diversion of clients for legal services scheme at an LSC grantee. Client diversion occurs when a grantee employee, contractor, or volunteer diverts clients seeking free legal assistance from the grantee to themselves or an associate for personal gain.
On December 16, 2022, a criminal complaint was filed and an arrest warrant was issued for Teresa Trantham, former Chief Administrative Officer, Legal Services of Eastern Michigan (LSEM). The complaint is based on a joint investigation conducted by the Office of Inspector General (OIG), United States Department of Housing and Urban Development (HUD), and the OIG for the Legal Services Corporation (LSC).
The information presented is a summary of the results of QCRs of Fiscal Year 2020 and Fiscal Year 2021 financial statement audits conducted by IPAs. We encourage IPAs and Executive Directors to use the summary information in planning and conducting audits of LSC grantees.