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Council questions contract oversight after embezzlement charges involving former provider

November 10, 2025 | Richmond City (Independent City), Virginia


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Council questions contract oversight after embezzlement charges involving former provider
During the meeting, Councilmember Gibson raised recent federal charges alleging embezzlement by an organization that formerly provided homeless services and asked city staff what happened to those funds and what the city is doing to ensure accountability.

"Several weeks ago, the U.S. District Court charged...Sisters Keepers," Gibson said, asking whether the funds were one‑time or recurring and what internal checks exist. City staff (Amy, Office of Homeless Services) said neither she nor Lisonbee Sailors were at the city at the time of those contracts but emphasized that current contracts include detailed addenda covering intake, security, food and other operational processes, and that providers are subject to regular reporting, audits and site visits.

Amy said the city has invested in Caritas, HomeAgain and the Salvation Army and that those organizations have decades of experience in Richmond. "We certainly do have extensive contracts with each of them...they're subject to audits," she said, adding that staff conduct site visits and maintain oversight through contractual reporting requirements.

Councilmembers acknowledged the need for continued vigilance and asked staff for more information on historical contracts and monitoring steps. City staff offered to provide additional detail on past contracts and said they will continue monitoring current providers closely.

What happens next: Staff said they will gather information on previous contracts related to Sisters Keepers and report back to council so members can assess past oversight and any needed corrective steps.

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Scribe from Workplace AI
Scribe from Workplace AI