ST. LOUIS – A couple from Edwardsville, Illinois, who managed a local nonprofit, was arrested on Tuesday after being indicted for allegedly embezzling over $7 million intended to feed low-income children in Missouri. Federal agents also seized several vehicles, including a pickup truck, two vans, and a minivan, which were reportedly purchased with fraudulently obtained funds.
Diarra Williams and Nicholas Warford
Diarra Williams, 30, and Nicholas Warford, 31, were indicted on February 26 on charges including conspiracy to commit wire fraud, six counts of wire fraud, conspiracy to commit money laundering, and obstruction of an official proceeding. They are expected to plead not guilty.
Missouri’s At-Risk Afterschool Program and Summer Food Service Program
According to the indictment, the pair exploited Missouri’s At-Risk Afterschool Program and Summer Food Service Program—both funded by the U.S. Department of Agriculture—by falsely claiming their nonprofit, The Bailey Foundation, served over 2.2 million meals between March 2020 and July 2022. The funds were laundered through Warford’s catering company, Warford’s Classic Catering LLC, using fake invoices for meals that were never provided.
The indictment details extravagant purchases made with the stolen funds, including a $1.4 million home in Edwardsville, luxury vehicles such as a 2018 Lincoln Navigator and two 2021 Ram ProMaster vans, as well as lavish vacations and significant personal expenses. The couple allegedly spent $140,000 on vacations, $100,000 on home furnishings and landscaping, over $50,000 on school tuition payments, and $460,000 on Warford’s mother.
The couple is also accused of obstructing the investigation by submitting falsified invoices in response to a federal grand jury subpoena. They reportedly misled state authorities by claiming the funds were used to feed children and falsely reported their spending as legitimate business expenses to the IRS.
The indictment seeks forfeiture of their home and vehicles. If convicted, the charges carry significant prison terms—up to 20 years for most counts and up to 10 years for money laundering.
“The alleged fraud is beyond despicable,” said Acting Special Agent in Charge Chris Crocker of the FBI St. Louis Division. IRS Special Agent William Steenson added that the accusations highlight an egregious misuse of taxpayer dollars meant for vulnerable children.
The case was investigated by the FBI, IRS Criminal Investigation Division, and the USDA Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Derek Wiseman.
According to the Bailey Foundation’s website, the nonprofit aims to “provide children and their families with educational programs, food and nutrition support, and leadership initiatives to ensure they have a strong healthy community to thrive in.”
