Jun. 06, 2025
SMITHFIELD – Today, state Rep. Charity Grimm Krupa (R-Fayette) formally submitted a written request to Pennsylvania Attorney General Dave Sunday urging an independent investigation into the Fay-Penn Economic Development Council following serious allegations made in a federal whistleblower complaint, case number 2:25-cv-00516-MRH.
The complaint alleges Fay-Penn, a nonprofit organization that receives both state and federal funding, may have misused public loan funds intended to promote local economic development. According to the filing, individuals affiliated with the organization’s leadership allegedly benefited personally from subsidized loan programs while members of the public were routinely denied access. It is further alleged that internal controls were ignored, contracts funded with public dollars were awarded without competitive bidding and the organization’s assets were treated as if they were private resources.
“These allegations strike at the very heart of what nonprofit economic development organizations are supposed to stand for,” said Grimm Krupa. “Fayette County has struggled with long-term economic decline. Taxpayer-supported development funds are meant to be invested in our people, our businesses, and our future—not redirected for personal gain. If these claims are true, they represent a profound betrayal of public trust.”
In her letter to the attorney general, Grimm Krupa stressed the need for a full investigation to determine whether state nonprofit laws, grant compliance standards, or criminal statutes have been violated. She emphasized that public confidence demands a process that is both independent and thorough.
“There is no room for self-dealing or favoritism when taxpayer dollars are at stake,” Grimm Krupa added. “The people of Fayette County deserve complete transparency and full accountability. I urge the attorney general to take swift action to ensure the integrity of this process and the restoration of public trust.”
A copy of Grimm Krupa’s letter is available upon request.
Representative Charity Grimm Krupa
51st District
Pennsylvania House of Representatives
Contact: 724-438-6100
RepGrimmKrupa.com / Facebook.com/RepGrimmKrupa