PHILADELPHIA (AP) — Three Pennsylvanians awarded a city grant to counsel transgender youths were indicted May 18 on charges that their company was a scam and never had a single client.

A federal grand jury returned a 19-count indictment against Joseph L. Lewis Jr., Janis P. Moore and Tyrone Smith, all of Philadelphia, charging them with mail fraud and other offenses.

Prosecutors said that between 1998 and 2000, the three were paid at least $130,000 by the city to provide psychological counseling to transgender adolescents through a company called New Mark Consultants, located in a neighborhood that is the heart of the city’s GLBT community.

During that time the company provided the city with invoices claiming to have worked with a number of teenage clients.

In reality, the indictment said, Lewis deposited funds for the program into his own bank account and used it to pay for personal expenses including lease and repair bills for two BMW automobiles, rent on his apartment, $10,000 in payments to family members, and stable and feed charges for his horse, “Cody.”

The indictment said an investigation revealed that Moore, who told city officials that she had been a grant writer and an educator for the Federal Bureau of Prisons between 1990 and 1994, had actually been an inmate in the federal prison system during that time.

The discrepancies were uncovered by the city’s Inspector General in 2000, officials said.

“As soon as the Department of Human Services found out there was any impropriety, they canceled the contract,” said Malayna Perloff, a spokesperson for Mayor John F. Street.

None of the defendants are in custody, but all three have been in contact with investigators and have agreed to appear at their arraignments, which have not yet been scheduled, according to Assistant U.S. Attorney Richard Zack.