https://www.mlive.com/news/saginaw-bay-city/2026/04/saginaw-youth-group-sues-church-alleging-fraud-embezzlement-of-arpa-funds.html

SAGINAW, MI — A Saginaw-based youth organization is suing a local church, alleging it committed fraud and embezzled six figures of pandemic relief funds.

Attorneys with the Mastromarco Firm on March 25 filed the civil suit in Saginaw County Circuit Court on behalf of Youth Employment and Recreation Network (YEARN). Named as the defendant is World Outreach Campus of Greater Coleman Temple Ministries Inc. (WOC), 2405 Bay St. in Saginaw.

YEARN’s mission was “to provide employment and training opportunities for a core group of at least 80 youth” in Saginaw. The group also sought to improve the academic performances of local youths negatively affected by the COVID-19 pandemic.

“It was a good program,” said attorney Trey Mastromarco. “They were paying these kids well and helping them figure out how to work in the community.”

The organization was originally composed of five community groups, including World Outreach Campus and New Birth Missionary Baptist Cathedral.

YEARN drafted a grant proposal to secure funding through the American Rescue Plan Act (ARPA), which Saginaw’s government was distributing.

The Saginaw City Council in January 2023 allocated $2,166,000 in ARPA funds to YEARN for community development, the suit states. Officials selected the entity Guidehouse to oversee the funds’ distribution. The release of the funds was contingent upon YEARN selecting a fiduciary, the suit states.

YEARN board member the Rev. Hurley J. Coleman Jr., bishop for WOC, was appointed fiduciary, the suit states. YEARN’s initial ARPA disbursement of $510,000 was released to Coleman on WOC’s behalf in June 2023, the suit states.

Unbeknownst to YEARN, Coleman failed to segregate the $510,000, the suit states. YEARN learned of this months later, during a meeting in which Coleman’s secretary disclosed Coleman had deposited the ARPA funds into WOC’s general operations account, the suit states.

Contacted by MLive, Coleman said he was aware of the lawsuit.

“We just got the document the other day,” he said. “We’re looking it over with our attorney and we have no comment.”

Without authorization from YEARN’s board, WOC used the funds to establish Victorious Believers Ministries in Buena Vista Township as a YEARN site, the suit alleges. The church underwent building renovations and financed events for its congregation, expenditures that had nothing to do with YEARN’s operations, the suit states.

WOC in August 2023 informed YEARN no funds remained to compensate site leaders and mentors for work they already performed, the suit continues.

An audit by the city’s financial director revealed about $193,773.06 of the $510,000 was unaccounted for and not given to YEARN as required under the fiduciary agreement, the suit states. The discrepancy led Saginaw officials to halt disbursement under the ARPA grant, thereby ending YEARN’s youth employment operations, the suit states.

“We don’t think the city in its audit would have pulled the funds unless they had a reason,” Mastromarco said. “The suspicion is that the funds were comingled and there is some evidence to suggest that. I don’t know how $200,000 goes missing.”

YEARN employed more than 50 Saginaw School District students when the grant was terminated. The group had to lay off its students and leadership staff.

“Bishop Coleman Jr.’s self-dealing, dishonesty, and misappropriation of grant monies resulted in (YEARN) being deprived of nearly $200,000 in funding that rightfully belonged to it,” the suit states.

The suit contains four counts: breach of fiduciary duty, conversion, embezzlement, and fraud. YEARN is seeking more than $500,000 in damages, plus interest, costs, and attorney fees.

YEARN is not currently operational.

“If there is money that can come back to YEARN, they can continue operating,” Mastromarco said. “That’s really the goal here.”

A future court date for the lawsuit is pending.