About a dozen Department of Commerce and Department of Human Services officials raided the offices of embattled social service agency Community Action on Friday morning.
The Star Tribune reports the state investigators had a warrant to obtain all of the organization's financial records. In addition, the newspaper said the controversial nonprofit laid off its employees and stopped accepting energy assistance applications.
MPR News added that state officials said they plan to cut ties to the nonprofit and will seek to recover state or federal funds the group "misspent."
A state audit said the agency misspent funds, using more than $800,000 for trips, golf and spa visits. A personal car loan for chief executive Bill Davis also drew fire. The organization provides weatherization, heating assistance and career counseling.
FOX 9 added that two members of the Minneapolis Council who had served on the board resigned. Both Blong Yang and Abdi Warsame ended their relationship with the agency.
Politicians who served on Community Action's board, all DFLers, say they had little direct involvement with group and appointed surrogates to attend meetings and cast votes. Many have cut ties with the nonprofit since the damning audit was released.
Community Action chief executive Bill Davis could not immediately be reached for comment.