7 people charged in MSU Nassar abuse victim fund fraud

Local News

Seven people, including two former Michigan State University women’s basketball players, have been charged with fraud in connection with the college’s Healing Assistance Fund for victims abused by former sports doctor Larry Nassar.

There are a total of  22 felony counts for fraudulent claims that led to the accused receiving more than $527,000 from the healing fund that was set up to provide counseling and support services.

Charged are: 
•    Maxann Reese, 40, of Dallas, Texas. She is charged with seven counts of false pretenses between $20,000 and $50,000. Reese played basketball at MSU from 1996-2000. 
•    Donita Johnson, 40, of New Baltimore. She is charged with two counts of false pretenses between $20,000 and $50,000 and two counts of false pretenses between $1,000 and $20,000. Johnson played basketball at MSU from 1997-2001.

•    Tammy Johnson, 50, of Clinton Township. She is charged with two counts of false pretenses between $20,000 and $50,000.
•    Marcetta Johnson, 70, of Clinton Township. She is charged with two counts of false pretenses between $20,000 and $50,000

.•    Corey Riley, 39, of Inkster. He is charged with false pretenses between $20,000 and $50,000
•    Porter Johnson, 75, of Clinton Township. He is charged with two counts of false pretenses between $20,000 and $50,000.
•    Mary Riley, 33, of Inkster. She is charged with false pretenses between $20,000 and $50,000 and three counts of false pretenses between $1,000 and $20,000. 

MSU spokesperson Emily Guerrant told 6 News:

“I can confirm that none of these names have publicly identified as a Nassar survivor before, nor are they part of Wave 1 or Wave 2 lawsuits against the university.”

The MSU Board of Trustee’s created the Healing Assistance Fund in the wake of the Larry Nassar scandal to financially support survivors during their recovery and healing.

The funds were designated to help pay for counseling and mental health services not covered by insurance. 

The $10 million fund was set up in December 2017.

It was locked in July after $1.1 million in payouts when the fund administrator raised concerns about fraudulent claims.

The university closed the initial fund and opened an interim fund while it works to create a new one. 
 

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