Youth Nonprofit's Exec Accused of Fraud

The executive director of a D.C. non-profit is accused of taking $506,000 that was supposed to benefit at-risk children and using it for gambling and personal expenses.

Keely Thompson Jr., of Keely's District Boxing and Youth Center, was arrested Thursday and charged with wire fraud. Thompson allegedly took the city funds beginning in 2004, authorities said.

Since 2004, the gym has received about $1.4 million in public funds, according to court documents.

Thompson is accused of using a gym debit card to withdraw $150,000 in cash while on various cruises and at Bally's Casino in Atlantic City.

In addition to his salary -- from $46,000 in 2004 to $81,000 in 2009 -- Thompson received 127 checks totaling $355,210, according to court documents. The non-profit failed to provide legitimate purposes for that money.

Thompson has confessed to some of these crimes, according to court documents. He allegedly told the FBI he intended to pay the money back, NBC Washington's Darcy Spencer reported.

"I used the money in the wrong way," Thompson said. "I done it and I can't change it."

Thompson appeared in court Thursday and was released on his own recognizance. He is scheduled to return to court in December.

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