Reno Woman Indicted for Embezzling Nearly $400,000 in Federal Grant Funds

RENO – A Reno resident made her initial appearance in court yesterday for allegedly stealing federal grant award money intended for the improvement and maintenance of tribal lands. "The Department of Justice’s National Fraud Enforcement Division, along with the U.S. Attorney’s Office for the District of Nevada, is committed to upholding the rule of law and ensuring that anyone who attempts to enrich themselves through theft and deceit is held fully accountable,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “Financial fraud of this magnitude compromises the integrity of our economic systems and directly threatens the security of hardworking people who trust and rely on those systems.” "Every dollar stolen through fraud is a dollar taken away from critical public services, infrastructure, and the communities that rely on them," said First Assistant United States Attorney Sigal Chattah for the District of Nevada. "Taxpayers deserve full transparency and absolute accountability. We are drawing a hard line: if you attempt to defraud public programs, we will find you, we will stop you, and you will face the full force of the law." “Our Agency is steadfast in its commitment to protecting taxpayer dollars by eliminating waste, fraud, and abuse,” said Nevada State Director Alida Ceballos for the United States Department of Agriculture Rural Development. “This indictment marks an important step toward ensuring that resources meant to support rural Nevadans are used for their intended purposes, not stolen by bad actors. We are thankful for the strong partnership of the U.S. Attorney’s Office, led by First Assistant U.S. Attorney Sigal Chattah, Assistant AG Colin McDonald of the Fraud Division, the USDA Office of the Inspector General, and the FBI, whose cross‑agency collaboration made this multi‑year investigation possible.” According to court documents and statements made in court, from April 2024 to May 2024, the United States Department of Agriculture (USDA) awarded the Yomba Shoshone Tribe grant money for an ongoing project to bring clean water to the members of the tribe and residents living on tribal lands. As alleged in the indictment, Blair Smith embezzled about $392,582 of funds awarded by the federal grant for the project. Smith was charged with one count of federal program theft. If convicted, the statutory maximum penalty is 10 years in prison. A jury trial has been scheduled for September 29, 2026. The USDA Office of Inspector General investigated the case. Assistant United States Attorney Skyler Pearson is prosecuting the case. On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs . An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###