By HOI ABC
PEORIA – The long-time leader of a national charity, formerly based in Bloomington, faces a federal indictment alleging she stole more than $400,000 from the organization that provides handmade blankets to kids in need.
The U.S. Attorney’s office announced Friday that former McLean County resident Carol Babbitt was arrested in her current hometown of Asheville, North Carolina, according to our news partner Heart of Illinois ABC.
For 16 years, Babbitt was national president of Project Linus, a not-for-profit charity that provides blankets to children who are seriously ill, traumatized, or otherwise in need.
The indictment alleges from 2010 to 2016, Babbitt used Project Linus credit cards to pay for personal expenses, such as clothing, electronics, pet grooming, furniture, tickets for sporting evens, and travel. She falsely classified the personal expenditures in the business ledger to hide her personal use of the funds, prosecutors said.
Babbitt allegedly reported Project Linus was in such poor financial shape that the organization could not reimburse others for their expenses.
According to prosecutors, Babbitt falsely told Project Linus’ board of directors that she was repaying the charity through payroll deductions.
Babbitt’s arrest on Thursday followed an investigation by the Internal Revenue Service, the Illinois Department of Revenue, the U.S. Postal Inspection Service, and Bloomington Police.
Babbitt faces up to 20 years in prison, a $500,000 fine, and may be ordered to pay restitution if she’s convicted on the mail fraud, wire fraud, and money laundering charges.
Babbitt was released after her first federal court appearance in North Carolina. Babbitt’s arraignment in U.S. District Court in Peoria is set for Feb. 13.
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