Monday, July 8, 2013

Unbelievable There is More: A New Trend In Charity Fraud?

By Gary Snyder

In just the past 24 hours there seems to be a pattern developing in charity fraud at agencies that serve clients with disabilities. We'll continue to monitor to see if it continues.

In Austin Texas, a former ARC of Texas employee is under investigation for allegedly stealing at least $230,000 from the trust funds of clients. 
In Ventura County, California, an employees is facing a number of forgery and grand theft charges in connection with the embezzlement of $425,000, over 8 years, from the Arc of Ventura County.
In Anchorage, Alaska, police have charged a bookkeeper with nine felonies for embezzling nearly over $93,000 from the ASSETS, INC accounts of 28 clients with intellectual disabilities over a 13 year period.

New: In Bismarck, North Dakota,the former executive director  of the Arc is charged with embezzling over $7,500
There obviously is a lack of internal controls as well as governance failures to have these frauds last for  such long periods. 

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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