A SAN FRANCISCO-BASED NONPROFIT organization that provides housing and homeless support services will retain its ability to receive city grants after resolving accusations of fraud brought by the San Francisco City Attorney’s Office. 

The organization, Providence Foundation, operates the Oasis Family Shelter at the former Oasis Inn in the city’s Western Addition neighborhood, as well as other service centers around the city. 

Providence Foundation was accused in a civil complaint by the city attorney in 2024 of billing the city for work that was never completed, which was a violation of its grant terms. The invoices concerned $105,000 in paint work and deadbolt removal that was allegedly billed to a company owned by Robert Lacy Jr., who was later hired to work directly for the foundation. 

It was also accused by the City Attorney’s Office of illicitly recording guests and employees, wage theft, nepotism, and a range of other billing, hiring and compliance issues. 

In addition to singling out at least two employees who had allegedly engaged in submitting the invoices, the civil complaint said that the organization had no chief financial officer, controller or in-house financial department, which allegedly contributed to the wrongful submissions. 

The organization agreed it had engaged in wrongdoing. Providence Foundation agreed to a $1 million settlement, let go of the employees allegedly involved, and agreed to a series of reforms related to accounting transparency that will be overseen for the next five years, according to the City Attorney’s Office. 

If the terms are not violated during that time, Providence Foundation can avoid debarment, which the City Attorney’s Office was seeking. Debarment would prevent the organization from doing further business with the city. 

Dexter Hall, Providence Foundation’s interim director, said in a phone interview that the issues included in the city’s complaint were addressed one-by-one and were closed by the city’s Department of Homelessness and Supportive Housing. 

Hall, who was hired last year to help resolve the organization’s compliance issues, said the foundation overhauled its board, rebuilt internal controls, and increased oversight. He said the foundation would continue to improve its service and seek to re-center its mission of serving its clients. 

The settlement with the City Attorney’s Office included over $500,000 in civil penalties and $480,000 in backpay to employees who did not receive holiday pay, according to a statement from the City Attorney’s Office. 

The penalty included $105,000 to reimburse the city for fraudulent invoices and $414,000 in civil penalties paid over the next five years. 

Lacy allegedly started a fake construction company registered in Alameda County called Will Do It Construction and billed Providence Foundation in 2022 for the work that was never performed, using a false contractor’s license, according to the city attorney’s civil complaint seeking debarment. 

Lacy then went on to be hired by Providence Foundation as its client engagement manager before being promoted to an assistant site manager at the foundation’s Central Waterfront Navigation Center, located on 25th Street. 

The invoices were submitted to the city by the foundation’s executive director at the time, Patricia Doyle, according to the civil complaint. 

The City Attorney’s Office said in its statement that the employees involved were no longer employed by the foundation. 

“Providence is a great example of how an organization can turn things around and do the right thing.”

San Francisco City Attorney David Chiu

The San Francisco District Attorney’s Office responded to a request for information about possible criminal or civil charges for anyone involved with a statement saying the office does not comment “on the existence or non-existence of possible criminal investigations.” 

Hall confirmed those named in the civil complaint were no longer employed by the foundation. He said Providence Foundation was committed to remembering who it serves moving forward. 

“This is really about restoring dignity to our guests and our mission,” he said. 

San Francisco City Attorney David Chiu said in a statement that the organization had made significant reforms. 

“Providence is a great example of how an organization can turn things around and do the right thing,” he said. 

Jen Kwart, a spokesperson for the City Attorney’s Office, said that public integrity investigations are not meant to be punitive and that the city would rather work with organizations to achieve compliance rather than debar them. 

She said the settlement resolved all civil complaints against those allegedly involved.