In February, Citibank froze the accounts of several nonprofits, including Habitat for Humanity and DC Green Bank, after being directed by the FBI and other federal agencies due to suspicions of criminal activity linked to potential fraud against the United States. The funds impacted are associated with Biden administration climate initiatives. Citibank's subsequent legal filings revealed detailed investigations and raised concerns over the implications for essential sustainability projects, as these groups now face severe disruptions. A high-ranking federal prosecutor’s resignation further highlighted the contentious nature of the evidence involved in freezing the funds.
Recently disclosed court documents reveal that Citibank was following requests from the FBI, the Environmental Protection Agency (EPA), the EPA Inspector General, and the Treasury Department when it froze the accounts of several nonprofit organizations and state agencies in February.
The funds in question were allocated by the Biden administration to support climate initiatives aimed at curbing pollution. Affected groups include Habitat for Humanity, DC Green Bank, and United Way.
Citibank's filing in opposition to unfreezing the government-allocated funds has provided previously undisclosed details, including a full list of nonprofits currently under FBI investigation for 'possible criminal violations, including 18 § U.S.C. 371 (Conspiracy to defraud the United States).'
Although the account freezes began in February, a high-ranking federal prosecutor resigned after refusing to instruct the bank to freeze the funds, writing in a letter that 'I still do not believe that there is sufficient evidence to issue the letter you described.'
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