Thursday, June 21, 2012

Pennies Add Up To Over $150,000 In Charity Embezzlement

by Gary Snyder    

Yonkers (NY) public libraries collected fines by the pennies---10 cents for most books, 50 cents for new seven-day ones. A well-liked longtime employee was responsible for taking the money collected by the branches

For seven years, she would regularly alter the collection paperwork to reflect a lower amount of fees and pocket the difference after taking money out of the library deposit bag and she made off with $163,582. Only after a new business manager was hired were the thefts discovered. The library had reviewed its procedures and made sure more people were involved with monitoring accounting issues.

She needed the money because she had a gambling addiction — including gambling in Atlantic City and playing the lottery.  She pleaded guilty to felony charges of grand larceny and filing false tax returns and was sentenced six months in the Westchester County Jail and the rest of the next five years on probation. She will also have to make restitution for the amount of the theft. Prosecutors had sought a state prison sentence, which would have meant at least a year in prison. (link)

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,, Responsive Philanthropy Magazine, New York Times...and many more Nonprofits: On the Brink (2006) Silence: The Impending Threat to the Charitable Sector (2011)
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