by Gary Snyder
New York Attorney General Eric Schneiderman has filed a lawsuit to shut down what he dubbed a “sham charity” in St. James that allegedly raised $9.1 million in the past five years to fight breast cancer but instead spent more than 95 percent of the money on staff perks.
Schneiderman alleges the Coalition Against Breast Cancer used the money to pay exorbitant fundraiser fees, unjustified salaries and benefits packages, and for personal goods like cell phones and TV services. He filed the lawsuit in Suffolk County court. The lawsuit alleges the group, its directors—Andrew Smith, Debra Koppelman and Patricia Scott—as well as Campaign Center and its owner, Garrett Morgan, engaged in a scheme to defraud. Smith and Koppelman paid themselves more than $550,000 in combined salaries for 2005 through 2009, in addition to a pension and $155,000 in loans to themselves. In 2008, the group raised more than $1.4 million and spent only $374 on mammograms and over the past three years it took in more than $4 million but funded mammograms for only 11 women.
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
Thursday, June 30, 2011
Thursday, June 23, 2011
Easy Sentence for Prominent Charity Leader
By Gary Snyder
The former president of NARAL Pro-Choice New York leader Kelli Conlin pleaded guilty to stealing more that $75,000 even though she made more than $309,000, including a $90,000 bonus in 2009, the last year for which the organization's tax records are available. An internal audit found that Conlin had charged $5,700 in clothes from designer Giorgio Armani and the chic emporium Barney's, a $17,000 summer rental in the Hamptons, and more than $100,000 in car service, some of it for a driver to drop her children off at school. Her case will be closed without jail time or probation if she pays more than $75,000 in restitution.
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
The former president of NARAL Pro-Choice New York leader Kelli Conlin pleaded guilty to stealing more that $75,000 even though she made more than $309,000, including a $90,000 bonus in 2009, the last year for which the organization's tax records are available. An internal audit found that Conlin had charged $5,700 in clothes from designer Giorgio Armani and the chic emporium Barney's, a $17,000 summer rental in the Hamptons, and more than $100,000 in car service, some of it for a driver to drop her children off at school. Her case will be closed without jail time or probation if she pays more than $75,000 in restitution.
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
Poor JUDGEment
By Gary Snyder
They needed a SWAT team to apprehend him.
He is charged with stealing $100,000.
He is charged with embezzlement from three different charities in a three-year period.
It took two years of local and state investigators to get the indictments.
He was indicted on 14 counts of forgery, all fifth-degree felonies; two counts of forgery, both fourth-degree felonies; and aggravated theft, a third-degree felony.
He was on the lam in Florida from Ohio when arrested.
As if that were not enough, the judge released him on his own recognizance.
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
They needed a SWAT team to apprehend him.
He is charged with stealing $100,000.
He is charged with embezzlement from three different charities in a three-year period.
It took two years of local and state investigators to get the indictments.
He was indicted on 14 counts of forgery, all fifth-degree felonies; two counts of forgery, both fourth-degree felonies; and aggravated theft, a third-degree felony.
He was on the lam in Florida from Ohio when arrested.
As if that were not enough, the judge released him on his own recognizance.
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
The Continuing Saga On Greg Mortenson's Charity
by Gary Snyder
In an effort for the Montana’s attorney general’s office to conduct its inquiry into the Central Asia Institute, the charity run by the embattled author Greg Mortenson, a class-action lawsuit demanding the return of millions of dollars of donations and book proceeds has been dropped.
Anne Beyersdorfer, who is serving as the institute’s interim executive director while Mr. Mortenson is out, said in a written statement that the charity was “bolstered” by the news that it was dropped from the case. “CAI’s mission,” she said, “is better served without trial lawyers and the expense of litigation.”
But Alexander Blewett III, the Great Falls, Mont. lawyer, who is handling the lawsuit, says the charity’s “glee” may be premature.
He says the complaint was amended only to “temporarily get out of the way” of the state’s attorney general’s office, which is conducting its own inquiry into the Central Asia Institute.
“It’s the A.G.’s position that only the A.G. can bring any such claims against a charity once a donor gives money,” Mr. Blewett says. But he adds: “If they don’t reconcile this fraud or malfeasance, then we’ll return with our claim.”
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
In an effort for the Montana’s attorney general’s office to conduct its inquiry into the Central Asia Institute, the charity run by the embattled author Greg Mortenson, a class-action lawsuit demanding the return of millions of dollars of donations and book proceeds has been dropped.
Anne Beyersdorfer, who is serving as the institute’s interim executive director while Mr. Mortenson is out, said in a written statement that the charity was “bolstered” by the news that it was dropped from the case. “CAI’s mission,” she said, “is better served without trial lawyers and the expense of litigation.”
But Alexander Blewett III, the Great Falls, Mont. lawyer, who is handling the lawsuit, says the charity’s “glee” may be premature.
He says the complaint was amended only to “temporarily get out of the way” of the state’s attorney general’s office, which is conducting its own inquiry into the Central Asia Institute.
“It’s the A.G.’s position that only the A.G. can bring any such claims against a charity once a donor gives money,” Mr. Blewett says. But he adds: “If they don’t reconcile this fraud or malfeasance, then we’ll return with our claim.”
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
Saturday, June 18, 2011
The Effect of Alleged Impropriety On Greg Mortenson’s Charities
By Gary Snyder
Students at Wolcott Street School had every intention of giving the $1600 to "Pennies for Peace," a fundraising campaign that collects money to help fund schools in Pakistan and Afghanistan. But after the program came under scrutiny this spring for how it was using money raised for the campaign, Le Roy (NY) elementary teachers and other school officials decided not to contribute the students' money to the campaign. Instead the money was given to the Backpack program, a local community service effort that provides backpacks stuffed with snacks and food for children to have during the weekend.
Pennies for Peace" is a charity program founded by Greg Mortenson, author of the best-selling memoir "Three Cups of Tea." The book describes how Mortenson wants to build schools to promote peace through education. The campaign, run by the Bozeman, Mont.-based Central Asia Institute, raises money to be used to buy notebooks, pencils and other school supplies that are not readily available in Pakistan and Afghanistan. The money also funds scholarships, teacher salaries and schools.
Mortenson's story and charity work is now being questioned, and the National Education Association, an organization of school employees that had honored Mortenson in 2009, is recommending schools withhold sending money until ongoing investigations are completed.
Mortenson's accusers charge that he lied about how he became involved in building schools in Pakistan and Afghanistan, that he used money donated to his charity for personal reasons such as chartered jets, equipment and advertising for Mortenson's books; and that he has not built nearly the number of schools he claimed and has left others abandoned without support or teachers.
In April, Montana Attorney General Steve Bullock opened an investigation into the Central Asia Institute to determine if the Mortenson benefited from money intended for building schools. The investigation follows reports by "60 Minutes" and author Jon Krakauer that cast doubts on Mortenson's story of being lost in 1993 while mountain climbing in rural Pakistan and stumbling upon the village of Korphe, where he was helped by residents.
Mortenson has denied any wrongdoing in postings to the CAI website. He said the memoir is largely true, while acknowledging that some events in his book were compressed over different periods of time, and denies any financial impropriety.
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
Students at Wolcott Street School had every intention of giving the $1600 to "Pennies for Peace," a fundraising campaign that collects money to help fund schools in Pakistan and Afghanistan. But after the program came under scrutiny this spring for how it was using money raised for the campaign, Le Roy (NY) elementary teachers and other school officials decided not to contribute the students' money to the campaign. Instead the money was given to the Backpack program, a local community service effort that provides backpacks stuffed with snacks and food for children to have during the weekend.
Pennies for Peace" is a charity program founded by Greg Mortenson, author of the best-selling memoir "Three Cups of Tea." The book describes how Mortenson wants to build schools to promote peace through education. The campaign, run by the Bozeman, Mont.-based Central Asia Institute, raises money to be used to buy notebooks, pencils and other school supplies that are not readily available in Pakistan and Afghanistan. The money also funds scholarships, teacher salaries and schools.
Mortenson's story and charity work is now being questioned, and the National Education Association, an organization of school employees that had honored Mortenson in 2009, is recommending schools withhold sending money until ongoing investigations are completed.
Mortenson's accusers charge that he lied about how he became involved in building schools in Pakistan and Afghanistan, that he used money donated to his charity for personal reasons such as chartered jets, equipment and advertising for Mortenson's books; and that he has not built nearly the number of schools he claimed and has left others abandoned without support or teachers.
In April, Montana Attorney General Steve Bullock opened an investigation into the Central Asia Institute to determine if the Mortenson benefited from money intended for building schools. The investigation follows reports by "60 Minutes" and author Jon Krakauer that cast doubts on Mortenson's story of being lost in 1993 while mountain climbing in rural Pakistan and stumbling upon the village of Korphe, where he was helped by residents.
Mortenson has denied any wrongdoing in postings to the CAI website. He said the memoir is largely true, while acknowledging that some events in his book were compressed over different periods of time, and denies any financial impropriety.
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
Thursday, June 16, 2011
Too Few Charity Regulators
by Gary Snyder
Despite collecting proclamations,keys to the city and letters of support from Governor Charlie Crist and U.S. Senator Bill Nelson, the Defeat Diabetes Foundation received a failing grade from the national charity watchdog group American Institute of Philanthropy or AIP.
“In 2008, the Defeat Diabetes Foundation spent only 17 percent of its cash budget on it's programs, with the remainder being spent on fundraising and other overhead, so it received an 'F' rating for financial efficiency from AIP,” said Laurie Styron, an AIP analyst. In 2008, $728,000 went to professional fundraisers and $164,000 went to Defeat Diabetes.
At least one state attorney general is watching. The Florida-based charity has been banned from fundraising in Iowa for at least 10 years. The AG, Tom Miller, says the foundation failed to ensure donations were being raised honestly and that the foundation even approved misleading telemarketing scripts. The Consumer Protection Division’s undercover phone line recorded several Defeat Diabetes solicitation calls, and Miller’s lawsuit alleged that they were uniformly deceptive.
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
Despite collecting proclamations,keys to the city and letters of support from Governor Charlie Crist and U.S. Senator Bill Nelson, the Defeat Diabetes Foundation received a failing grade from the national charity watchdog group American Institute of Philanthropy or AIP.
“In 2008, the Defeat Diabetes Foundation spent only 17 percent of its cash budget on it's programs, with the remainder being spent on fundraising and other overhead, so it received an 'F' rating for financial efficiency from AIP,” said Laurie Styron, an AIP analyst. In 2008, $728,000 went to professional fundraisers and $164,000 went to Defeat Diabetes.
At least one state attorney general is watching. The Florida-based charity has been banned from fundraising in Iowa for at least 10 years. The AG, Tom Miller, says the foundation failed to ensure donations were being raised honestly and that the foundation even approved misleading telemarketing scripts. The Consumer Protection Division’s undercover phone line recorded several Defeat Diabetes solicitation calls, and Miller’s lawsuit alleged that they were uniformly deceptive.
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
Thursday, June 9, 2011
Update on Greg Mortenson, "Three Cups of Tea and the Central Asia Institute
by Gary Snyder
As readers of Nonprofit Imperative will remember, Greg Mortenson is the embattled Bozeman (MT) author of the bestselling "Three Cups of Tea," and the leader of the nonprofit Central Asia Institute. He underwent open-heart surgery last week.
There are new revelations about his charity and book. A Daily Beast/Newsweek article reported that: 1. Two unnamed former CAI associates said they had been contacted by an agent with U.S. Secret Service, which investigates fraud at the federal level; 2. Bozeman police were called April 25 to Mortenson's home, where his wife reported he was "assaultive" and "screaming"; that the police report noted Mortenson was under a doctor's care and taking medications that contributed to the disturbance; and that he was allowed to remain at home under the care of his doctor and a therapist; 3. CAI had hired Burson-Marsteller, a global public relations firm, with Karen Hughes, former President George W. Bush communications advisor, when it became the target of damning media reports, but terminated the relationship after the initial media crush.
Anne Beyersdorfer, acting director of CAI during Mortenson's absence, said donations continue to come in, though she had no numbers, and CAI is focusing on building a large number of new schools overseas this year. "There is a large population of CAI supporters who have not lost faith," she said. "We're still very busy overseas.... The mission continues. “
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
As readers of Nonprofit Imperative will remember, Greg Mortenson is the embattled Bozeman (MT) author of the bestselling "Three Cups of Tea," and the leader of the nonprofit Central Asia Institute. He underwent open-heart surgery last week.
There are new revelations about his charity and book. A Daily Beast/Newsweek article reported that: 1. Two unnamed former CAI associates said they had been contacted by an agent with U.S. Secret Service, which investigates fraud at the federal level; 2. Bozeman police were called April 25 to Mortenson's home, where his wife reported he was "assaultive" and "screaming"; that the police report noted Mortenson was under a doctor's care and taking medications that contributed to the disturbance; and that he was allowed to remain at home under the care of his doctor and a therapist; 3. CAI had hired Burson-Marsteller, a global public relations firm, with Karen Hughes, former President George W. Bush communications advisor, when it became the target of damning media reports, but terminated the relationship after the initial media crush.
Anne Beyersdorfer, acting director of CAI during Mortenson's absence, said donations continue to come in, though she had no numbers, and CAI is focusing on building a large number of new schools overseas this year. "There is a large population of CAI supporters who have not lost faith," she said. "We're still very busy overseas.... The mission continues. “
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
Monday, June 6, 2011
Double Trouble From This Charity Lawyer
by Gary Snyder
Roosevelt Hairston, Jr, a former lawyer for the Children’s Hospital of Philadelphia, was arrested and charged for embezzling $1.7 million as he served as general counsel for the hospital. Charges against Hairston include mail fraud, money laundering and even filing a fake tax return.
The entire episode reveals the failure of the hospital’s financial auditing system to identify and stop significant financial waste, or in this case – serious fraud. It took 12 years for investigators to identify and uncover the stolen funds. Steven Altschuler, Children’s Hospital of Philadelphia’s CEO, in a statement, stated that the hospital is reviewing its internal control structure to ensure the proper safeguarding of the institution’s assets.
According to the U.S. Attorney’s office, Hairston created false companies, forged invoices, and even created fake email accounts in order to continue the scheme and cover his tracks. His fraud continued, completely unabated, for about 12 years before hospital auditors finally caught up with him.
Attorney Hairston utilized his money laundering and embezzlement scheme by establishing himself in a “position of trust” within the hospital. That trust spilled over to other areas. Hariston also served on the board for a number of nonprofit organizations in the area, such as the Public Interest Law Center of Philadelphia, and ironically he also served on several regulatory boards. For example, he was appointed to the Philadelphia Workforce Investment Board by Mayor John Street.
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
Roosevelt Hairston, Jr, a former lawyer for the Children’s Hospital of Philadelphia, was arrested and charged for embezzling $1.7 million as he served as general counsel for the hospital. Charges against Hairston include mail fraud, money laundering and even filing a fake tax return.
The entire episode reveals the failure of the hospital’s financial auditing system to identify and stop significant financial waste, or in this case – serious fraud. It took 12 years for investigators to identify and uncover the stolen funds. Steven Altschuler, Children’s Hospital of Philadelphia’s CEO, in a statement, stated that the hospital is reviewing its internal control structure to ensure the proper safeguarding of the institution’s assets.
According to the U.S. Attorney’s office, Hairston created false companies, forged invoices, and even created fake email accounts in order to continue the scheme and cover his tracks. His fraud continued, completely unabated, for about 12 years before hospital auditors finally caught up with him.
Attorney Hairston utilized his money laundering and embezzlement scheme by establishing himself in a “position of trust” within the hospital. That trust spilled over to other areas. Hariston also served on the board for a number of nonprofit organizations in the area, such as the Public Interest Law Center of Philadelphia, and ironically he also served on several regulatory boards. For example, he was appointed to the Philadelphia Workforce Investment Board by Mayor John Street.
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
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