Bishop Harding Smith denies wage theft, swindling charges
Nonprofit leader Bishop Harding Smith criminally charged
The president and founder of Minnesota Acts Now, Bishop Harding Smith, has been charged with wage theft and theft by swindle. FOX 9's Soyoung Kim has the latest.
MINNEAPOLIS (FOX 9) - The president and founder of the nonprofit Minnesota Acts Now is accused of paying his employees about $150,000 less than what was in a contract with Hennepin County, according to charges filed in Hennepin County.
Bishop Harding Smith has been charged with wage theft and theft by swindle, both felonies, in connection with the case.
Wage theft, swindling
What we know:
Hennepin County authorities say they had a contract with Smith and Minnesota Acts Now from August to December of 2021 to provide violence intervention services. Smith also allegedly made false claims to the county that he was paying employees wages required by the contract.
Hennepin County officials say based on a review of payroll records and timesheets, investigators calculated Minnesota Acts Now had a reported $495,547.90 in payroll expenses, but actually incurred $346,209.31. That’s a difference of almost $150,000.
Employees underpaid
What they're saying:
According to county officials, employees would be paid $35 per hour for their work. Court documents state most employees were paid $20 per hour, or $25 to $30 per hour. Documents state only two employees were paid $35 per hour, both Smith and his spouse.
"Bishop Harding Smith failed to pay his employees what he agreed to as part of the contract with Hennepin County and then lied about it when seeking payroll expense reimbursements," Hennepin County Attorney Mary Moriarty said in a statement. "As I said when our office secured the state’s first wage theft conviction, this behavior will not be tolerated."
Smith speaks with investigators
Why you should care:
Smith acknowledged to investigators in February that he paid Minnesota Act Now's employees less than $35 per hour. He told authorities he made all decisions about payroll, and denied fraudulent intent. He said he had not used funds from MAN's accounts for his personal benefit. In December of 2021, the nonprofit had about $100,000 in its savings account, which was used to build a youth empowerment center in Brookyn Park,
Smith speaks with FOX 9
What Smith said:
Over the phone, Smith told FOX 9 he denies these charges. Smith’s lawyer Jordan Kushner said the incident is being taken out of context.
"We reviewed the complaint and the charges against Bishop Harding Smith are baseless. Harding Smith ran a non-profit organization that provided a valuable service to the community, helping public safety. He got compensated very modestly," said Kushner. "The way he spent the money, he understood to be within the purview of the contract. He used some of the money to pay the workers decent wages and he also used it to cover operational expenses. There was no theft. He didn’t put anything into his pocket. All the money they are complaining about was used to allow his organization to function and to serve the community."
What's next:
Smith is not currently in custody. He has a court date set for June 16.