Sacramento mayor, feds agree to grant settlement

SACRAMENTO, Calif. – Federal prosecutors on Thursday announced a settlement with Sacramento Mayor Kevin Johnson over allegations that a nonprofit founded by the former NBA star used federal money to pay volunteers for jobs including political activities, running personal errands and washing Johnson’s car.

Johnson’s St. HOPE Academy must repay nearly $424,000 in return for the government lifting its suspension on future federal grants. Johnson will pay nearly $73,000 of that amount, although the organization will reimburse him when it is able to do so. He also agreed to complete an online class on how to manage federal grants within four months.

Federal authorities last year put Johnson on a list of people forbidden from receiving federal money, and there were concerns that the case could jeopardize Sacramento’s access to federal stimulus funds. Johnson’s suspension from receiving federal money will be lifted under terms of the settlement.

The mayor, who took office in December, said Thursday he believed the terms of the settlement were excessive but added that it was more important to “put this issue behind us.”