Chicago businessman pleads guilty to grant fraud scheme

SPRINGFIELD, Ill. (AP) - A Chicago businessman has pleaded guilty to fraudulently obtaining from two state agencies nearly identical, grants to his not-for-profit organization.

Federal prosecutors say 66-year-old George E. Smith operated Diversified Behavioral Comprehensive Care, described as offering social services and mental health care to youth and their families.

Prosecutors say that from 2005 through 2011, Smith received millions of dollars in funding from the Illinois Department of Human Services, the Department of Children and Family Services, and the State Board of Education.

In a plea agreement, Smith admitted he induced DCFS and the Board of Education to issue two separate, but nearly identical grants that together totaled $792,000 to Diversified Behavior Comprehensive Care. Prosecutors say neither agency knew of the other's action.

Smith remains free on bond pending sentencing in July.