Thursday, February 12, 2015

Nonprofit Million Dollar Fraud: It Took Many Years To Detect

by Gary Snyder

The former chief financial officer of the Marine Exchange of the San Francisco Bay Region has been sentenced in federal court in San Francisco to four years and nine months in prison for convictions related to his embezzlement of more than $928,000.

He pleaded guilty in November to two counts of wire fraud, one count of mail fraud and one count of tax evasion, and admitted he embezzled more than $928,000 from his employer.

The Marine Exchange is a nonprofit group that collects and analyzes maritime shipping traffic data.

He worked for the association from December 2007 through April 28, 2014, first as a contractor and then as chief financial officer.

Prosecutors said in a sentencing brief that his embezzlement included $551,511 in checks he cashed from the exchange’s bank account; $257,638 worth of personal goods bought with the organization’s credit cards; and $118,986 in unwarranted payments to a friend whom he hired.

The judge ordered him to pay a total of $1,105,481 in restitution, including $928,000 in repayment to the Marine Exchange and more than $175,000 in taxes due.

He has been in custody since his arrest on May 30, 2014, according to U.S. Attorney Melinda Haag. (source)

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: Charity Navigator, Vermont Public Radio, Miami Herald, National Public Radio (NPR), Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), “Betrayal”, (a movie), NBC (on Charity Fraud…TBD), FOX2, ABC Spotlight on the News, WWJ Radio, Marie Claire, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, Charity Navigator, The Chronicle of Philanthropy, St. Petersburg Times, Board Room Insider, USA Today Topics, Accountants News,, Responsive Philanthropy Magazine, New York Times, Portfolio Magazine, The Virgin Islands Daily News, NANKAI (China) BUSINESS REVIEW, National Religious Broadcasters newsletter, The Charity Governance Blog, American Chronicle, Palm Beach Post, Detroit Free Press, Oakland Press, Nonprofit World, Socially Responsible Business Forum, PNNOnline, Ohio Nonprofit Resources, Nonprofit Good Practice Guide, Nonprofit Startup Guide, Nonprofit Blog, National Coalition of Homeless Newsletter, Finance and Administration Roundtable Newsletter,, CORP! Magazine, Crain’s Michigan Nonprofit,, PhilanTopic, Nashville Free Press, Nonprofit Law Blog, Seniors World Chronicle, Carnegie Reporter, Assoc. of Certified Fraud Examiners Examiner,, Worchester (MA) Telegram and Gazette, Carnegie Corporation of America, EO Tax Journal, Wikipedia: Non-profit Organizations; Parent: Wise Austin, Accountants News, Veterans Today,, Far-roundtable, #Nonprofit Report, nonprofithelpnews, nonprofit news; National Enquirer, Northwest Herald, The HelpWise Daily, The #Nonprofit Report, Wikipedia (Nonprofit Organization),, Nonprofits: On the Brink (2006) Silence: The Impending Threat to the Charitable Sector (2011)
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