This a Fascinating Update on A Charity Fraud Master

by Gary Snyder

Staff writers at the Tampa Bay Times have spent an inordinate amount of time putting together a fascinating article on one of the notorious charity criminals on record.

Readers of Nonprofit Imperative will remember ‘Bobby Thompson’ as the head of U.S. Navy Veterans Association until the charity collapsed under scrutiny in mid 2010. He is now a fugitive, wanted by federal officials on charges of money laundering, fraud and identity theft. “Bobby Charles Thompson” ran the bogus nationwide non-profit group while collecting over $20 million and lavishly giving that money to politicians that gave him direct access to some of the leading politicians in America, including the president of the United States.

This is another interesting case where the press uncovered the crime. Charity regulators were absent, but they are now all over the country trying to capture of Thompson. Thompson disappeared after, the then, St. Petersburg Times questioned him about some political donations and began publishing an investigative series. Shortly thereafter Ohio brought charges against him where authorities say he donated nearly $300,000 to political causes. Authorities know that ‘Bobby Charles Thompson’ is not his real name.

They are still clueless as to where he is and exactly where all the money went. It is astounding that this person could get as close to the president and other elected officials without security clearance. (link)

Through his aliases he stumped the Internal Revenue Service, several charity regulators and thousands of contributors. He stole other names as he needed them. As the Times article notes, of his seven known aliases, four were stolen from people who either lived or worked on Indian reservations. Among the aliases assumed by the Tampa man was a policeman who died in 1999. Elmer L. Dosier's children told the Times they were completely unaware their father's name and Social Security number had been used — after his death — to get an Indiana driver's license. The photo on the license: the founder of Navy Veterans.

Four other men whose identities were stolen also told the Times they were clueless about the theft until told by investigators. None of the men recognized photos of the man who misused their identities. They could not imagine any way their paths had crossed the fugitive's or even each other's. They hadn't attended the same schools, been in the same military units or belonged to the same clubs. And none of those interviewed by the Times said they ever donated to Navy Veterans. The Navy Veterans founder stole his primary persona from a Choctaw Indian born 65 years ago in Mississippi. Though the fugitive claimed to be 1/16 Choctaw, people who know the real Bobby Thompson say he looked nothing like his alter ego.

This may or not be its signature story, but the Times has done an admirable job in keeping its readers up on the latest sightings of Thompson and the latest mishaps of the regulators.

Just great investigative work!

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)Tampa Bay Times

Charities Better Look Over Their Shoulder

by Gary Snyder


Since there is no self-regulation by charitable sector leadership, law enforcement agencies are having to step in and take charge. New York is the latest to initiate it.


Attorney General Eric T. Schneiderman is the latest politician to offer an overhaul plan aimed at nonprofit groups. But the report he unveiled on is as much an aid package for nonprofit groups as an attempt to hold the line on runaway compensation and other abuses. Mr. Schneiderman does propose some steps to bolster self-policing by nonprofit groups, including the use of independent directors to monitor compensation and other issues — though it’s not clear from the report or a legislative summary provided by Mr. Scheiderman’s office how an “independent director” would be defined. 


But the effectiveness of Mr. Schneiderman’s plan most likely hinges on his proposal to tweak state law to give the attorney general greater authority to challenge excessive compensation in court. “We must maintain the public’s trust by ensuring that nonprofits are governed effectively, and with meaningful oversight. ”The governor created a panel to review nonprofit compensation last year, after a report was published in The New York Times about compensation abuses at one of the state’s largest nonprofits serving the developmentally disabled. 
(New York Times) (crainsnewyork)



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)

Some Insight Into the Komen Foundation

This some-what dated article may give you some perspective on the recent firestorm between the Komen Foundation and Planned Parenthood
http://southernstudies.org/2012/02/flashback-how-the-komen-foundation-fights-health-reform-and-fails-cancer-patients.html




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)

Incredible: Smithsonian Under Investigation, again

by Gary Snyder

Sen. Charles E. Grassley (R-Iowa): “I am now concerned that Smithsonian Secretary Clough has incurred many of the same type of questionable travel expenses as his predecessor and his promised changes at the Smithsonian may have been little more than lip service.” Secretary G. Wayne Clough had taken 59 trips since he became secretary in July 2008 with trips to France, Alaska and “resort destinations in Florida and Colorado.” “The Smithsonian is proud of the fact that two-thirds of its travel funds come from outside sources,” a Smithsonian statement said.

In the past, Grassley demanded accountability from the Smithsonian regarding the expenses of former Smithsonian Secretary Lawrence M. Small. A Washington Post investigation found that Small was using federal funds for his travel and upgrades on his Smithsonian office and private home. Small resigned in March 2007. 

In the wake of Small’s resignation, the Smithsonian tightened its travel policies, following federal travel guidelines. “Clough routinely traveled first class on commercial flights, a practice that is prohibited under federal guidelines (unless medically necessary), and opposed by the Smithsonian’s own auditors. Clough repeatedly cited a medical condition as the reason for his first class accommodation, although travel photos taken by the Smithsonian show him hiking and exploring the outdoors.” according to Junketsleuth.com. (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, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)

Congressional Charity Earmarks Benefit Wrong Family Members

               by Gary Snyder

           Since members could earmark as long as they could certify to congressional committees that neither they nor their immediate family members stood to benefit from the earmark in question they did so with abandon. This is particularly acute under House rules which only require lawmakers certify only that neither they nor their spouses hold a financial stake in their earmarks, not other members of their immediate families. 

      The Washington Post found that Senator Tim Johnson’s wife was hired as a contract employee to evaluate a program that a Johnson earmarked for $4 million. His wife, Barbara, was paid an annual salary of $80,000. 

      Rep. Ed Pastor (D-AZ) is a member of the powerful House Appropriations Committee directed millions to fund the scholarship program for at-risk high school students headed by his daughter in Arizona. The Arizona Republic reported in 2007 that Laura Pastor was not the highest-ranked candidate for the position but had received a salary at the top of the pay scale. The paper also discovered that an equal-opportunity investigator had warned college officials that “we will not be able to totally defend the hiring decision.” 

      Rep. Sheila Jackson Lee (D-Tex.) has championed millions in earmarks to the University of Houston while her husband, Elwyn C. Lee, has helped to run the school as a senior administrator. He was named the university’s vice president for community relations and institutional access with a salary of $210,491 a year. 

      As a member of the House education committee, Rep. Robert E. Andrews (D-N.J.) has secured six earmarks worth $3.3 million for a scholarship program at Rutgers School of Law in Camden. His wife, Camille Spinello Andrews, is an associate dean. 

      Rep. Rob Bishop (R-Utah) requested earmarks worth more $1.2 million for Weber State University in Ogden. The university hired the congressman’s son Shule Bishop as a lobbyist. He serves as director of government relations. 

      Congressman Daniel Lipinski, helped secure $2.5 million in earmarks since taking office for rail projects that are overseen by the Chicago Transit Authority. The CTA is one of his father’s, William Lipinski, lobbying clients which paid the former congressman $766,330.20 in fees since 2007, according to the transit agency. The Chicago Sun-Times first reported Lipinski’s earmarks for his father’s client in 2010. 

      Rep. Corrine Brown (D-FL.) helped secure $21.9 million in earmarks to six clients of Alcalde & Fay, a lobbying firm that employs her daughter, The Washington Post found. During that time, the clients paid the firm more than $1 million in fees to represent them before Congress, records show. Other earmarks by Brown have been previously reported. She was the sole sponsor of $1.79 million in earmarks to a seventh client, the Community Rehabilitation Center. At the time, her daughter, Shantrel Brown, worked as a lead lobbyist on behalf of the center, the Florida Times-Union reported in 2010. The earmarks were secured to help finance “substance abuse and mental health programs” at the center and to upgrade a Jacksonville, Fla., strip shopping mall where the center is located, records show. The federal lobbying reports say Shantrel Brown sought “federal funding for substance abuse and mental health programs” from 2008 to 2010.

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)

Are Breast Cancer Charities Worthy of Your Support?

By Gary Snyder

Aside from all of the front-page news about the Susan G. Komen/Planned Parenthood fiasco, there are other more significant issues that should be addressed. This storm will eventually blow over, but the conduct of the breast cancer charities may not.

The Incredible Mix up

As anyone on earth knows, Susan G. Komen for the Cure, the nation's leading anti-breast-cancer charity pulled the plug on funding Planned Parenthood grants for cancer screenings and mammogram referrals. The Komen foundation had several reasons none of which were coordinated with interviews or corporate public relation statements from the president and chairman. It was a chaotic nightmare. After a firestorm of criticism for four days, Komen reversed it its decision.

Many issues seemed to swirled around Karen Handel, Komen's staunchly anti-abortion vice president for public policy. Insiders suggest that she was the main force behind the decision to de-fund Planned Parenthood but the public relations experts tried to attempt to make that decision look nonpolitical. Ari Fleischer’s involvement did not help matters. The one time Bush Press Secretary and Planned Parenthood detester, and confidant of Nancy Brinker, played a part in orchestrating the debacle. As a result, some key insiders resigned.

The Organizational Conflicts

The attention to the Planned Parenthood conflict brought interest in the internal operations of the Susan G. Komen for the Cure foundation. According to financial documents Nancy Brinker took home $417,000 in salary in 2010. This is not an extraordinary salary for the size of the charity, but $3 million for travel and $28 million in office and consulting fees is. As I write this article, I realized that Karen Handel has resigned. I wonder what the payout is going to be. According to its 2010 federal tax submission the organization paid former CEO and President Hala Moddelmog almost $300,000 for not working one hour.

The charity’s decision-making reflects many breast cancer charities that have received recent unfavorable expose. Brinker is founder and both the chairman of Komen’s board of directors and its CEO. This dual role causes many problems. The chairmanship is supposed to be at arm-length relationship with the operation arm of the organization. In her two roles she is both recommender and decision-maker on all foundation matters. As staff she is able to distill all information that goes before the board. As board chair, she is able to influence the outcomes of all matters she, as staff, recommend. This is toxic relationship.

To exacerbate the problem she is able to pack both the staff and board with those that are of similar mind. Members of family of leaders are on the board. This entire set up gives the appearance of a fiefdom.

Some Breast Cancer Charities Are Dubious 

Breast Cancer is huge business. About $6 billion a year is committed to breast cancer research and awareness campaigns. As a Marie Claire magazine report noted, all is not well in the breast care industry. (public declaration: I assisted on this article) Thousands are making handsome salaries and some are not even legit.

The Coalition Against Breast Cancer offers virtually nothing to patient after taking in millions. This charity offers all the pitfalls of charitable giving. New York Attorney General Eric Schneiderman called the charity a sham. Over a period of 15 years the principal associates stole $9.1 million. The telemarketing firm took $3.5 million for its services.

The United Cancer Council hired Watson & Hughey Company (W & H) as its only fundraiser. During the term of the contract, of its net charitable proceeds of $28-odd, $26-plus million went right back out, to W & H.

The National Breast Cancer Foundation was a family affair. With collections of about $10 million, the founder takes home $200,000, her son $180,000, her husband and another son all share in the largess at the expense of those in need. It even endorses misleading jewelry. About 40% of its revenues were not spent toward its mission.

Cancer Fund of America is a controversial group. Both the Better Business Bureau and the nonprofit rating agency Charity Navigator have blasted it for giving less than a penny of every dollar raised to cancer patients. Charity Navigator once listed the Cancer Fund of America Support Services, as one of "10 Non-Profits That Make Ebenezer Proud." In 2007, the Georgia Governor's Office of Consumer Affairs accused that group of making false and misleading claims in its mail solicitations, allegations that the Cancer Fund of America ultimately settled for $50,000

Breast Cancer Society (BCS) claims it raised $50 million in contributions in tax filings but when pressed by Marie Claire magazine the founder said that it raised just $15 million in cash donations in 2009. The other $35 million represented his estimate of medications that the BCS accepted as gifts or bought at a major discount but then listed on its books as having much higher values. He says he gets the meds from other organizations, including the Ontario-based Universal Aide Society, which saw its Canadian charitable status revoked two years ago for malfeasance. In 2009, the leader collected a $223,276 salary.

With incredible fraud and virtually no check on governance, breast cancer charities should be under assault.  Exerting its leadership, Susan G. Komen has a unique opportunity to make changes that will instill the confidence that has been sorely eroded.

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)