Tuesday, October 28, 2014

No One Was Paying Attention To The Sex, Big Embezzlement at University

by Gary Snyder

For over thirteen years Scott Eaton the athletic director at Northern Kentucky University was having affairs with his many girlfriends. 

All the while he was embezzling about $311,000 from the school and using the money to give the girlfriends cash and buy them gifts.

Eaton, a husband and a father, gave one of his five NKU girlfriends $2,500 a month in university funds for two years but he stopped when the woman's husband contacted him.

He paid one lover's tuition during their 13-year "on and off" affair, mailed Christmas gifts to her last year and sent her e-mails early this year telling her he still loved her, the woman told a criminal investigator working the case.

Eaton's mistresses included at least four university employees and one student. 

Eaton told investigators he started that affair in 2000 and two more in 2008. He also said he had affairs in 1998  - the year he was hired at NKU - and 2002.

She said she had been having a sexual relationship with Eaton since 2000. She said she was aware he was married but not that he was having relationships with other women.
  
He pleaded guilty last April. He was fired in March 2013. Eaton's long trail of theft, deceit and betrayal landed him a 10-year prison sentence. 

To NKU's fault, no one was paying attention to how he spent the university's and taxpayers' money. Eaton realized the university was not keeping track of his spending. 

Eaton began buying Kroger gift cards with his university credit card and using them to buy other store gift cards to make purchases. Sometimes he bought items and returned them for cash.

Over the next six-plus years, Eaton used his NKU credit card 183 times to buy Kroger gift cards for his personal use. He started buying them in amounts of $2,125, then raised that to $3,135. By mid-2008, maybe because he started to worry about getting caught, he started spending less on cards - $1,440 was a favorite amount – but bought them more often.
By mid-2009, he was back up to $1,800. By 2011, it was $2,700, then $3,600.
He was still buying them in amounts of $3,600 when he got caught in early 2013.
Eaton had bought $262,106 in Kroger gift cards for his personal use, according to an NKU audit. 

The audit tracked his illegal spending to a dozen retailers. All told, Eaton spent more than $26,000 at Barnes and Noble and more than $8,000 at Kohl's and Best Buy.

NKU President Geoffrey Mearns said the school has tightened its accounting and reduced the number of workers who carry a university credit card.


After getting out of prison, he is required to begin paying back the $311,215 he stole. (article)



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, Newsweek.com, 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, MichiganNonprofit.com, CORP! Magazine, Crain’s Michigan Nonprofit, ncrp.org, PhilanTopic, Nashville Free Press, Nonprofit Law Blog, Seniors World Chronicle, Carnegie Reporter, Assoc. of Certified Fraud Examiners Examiner, msnbc.com, Worchester (MA) Telegram and Gazette, Carnegie Corporation of America, EO Tax Journal, Wikipedia: Non-profit Organizations; Parent: Wise Austin, Accountants News, Veterans Today, Answers.com, Far-roundtable, #Nonprofit Report, nonprofithelpnews, nonprofit news; National Enquirer, Northwest Herald, The HelpWise Daily, The #Nonprofit Report, Wikipedia (Nonprofit Organization), Answers.com, Nonprofits: On the Brink (2006) Silence: The Impending Threat to the Charitable Sector (2011)

Monday, October 27, 2014

Study: Huge Increase In Charitable Giving Among Wealthy

by Gary Snyder

Among wealthy households, the average amount given to charity last year increased 28 percent, according to the 2014 U.S. Trust® Study of High Net Worth Philanthropy. Through an ongoing partnership with the Indiana University Lilly Family School of Philanthropy, the fifth in this series of biennial studies reveals a strong commitment to charitable causes among high net worth households. This positive trend is seen in several findings, including:
  •       Last year, virtually all (98.4 percent) high net worth households donated to charity, compared to 95.4 percent in 2011. This marks the highest rate of high net worth participation in charitable giving since the study began in 2006. This high rate of giving among the wealthy compares with 65 percent of the U.S. general population who donate to charity.
  •      The average dollar amount given to charity by wealthy donors increased 28 percent, from $53,519 in 2011 to $68,580 in 2013. Average giving as a percentage of household income decreased by one percentage point, as increases in income levels slightly outpaced increases in giving levels among this demographic.
  •        Eighty-five percent of wealthy donors plan to give as much (50 percent) or more (35 percent) in the next three to five years (through 2018) than they have in the past – up from 76 percent who said they planned to give as much (52 percent) or more (24 percent) when asked in 2012. The top reasons cited by those who plan to increase their giving are “increased financial capacity” (85 percent) and the “perceived need of the nonprofits or causes” they support (48 percent). (article: HERE)




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, Newsweek.com, 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, MichiganNonprofit.com, CORP! Magazine, Crain’s Michigan Nonprofit, ncrp.org, PhilanTopic, Nashville Free Press, Nonprofit Law Blog, Seniors World Chronicle, Carnegie Reporter, Assoc. of Certified Fraud Examiners Examiner, msnbc.com, Worchester (MA) Telegram and Gazette, Carnegie Corporation of America, EO Tax Journal, Wikipedia: Non-profit Organizations; Parent: Wise Austin, Accountants News, Veterans Today, Answers.com, Far-roundtable, #Nonprofit Report, nonprofithelpnews, nonprofit news; National Enquirer, Northwest Herald, The HelpWise Daily, The #Nonprofit Report, Wikipedia (Nonprofit Organization), Answers.com, Nonprofits: On the Brink (2006) Silence: The Impending Threat to the Charitable Sector (2011)

Friday, October 24, 2014

THE NFL'S PINK OCTOBER DOES NOT RAISE MONEY FOR CANCER RESEARCH

by Gary Snyder


You've probably once in the last six years been lured into buying the NFL's Pink October paraphernalia and then slept well thinking about your contribution to the league's effort to "help fight breast cancer."

The month-long campaign that paints everything from player's shoes to fields to penalty flags pink, doesn't actually result in a single dollar donated to breast cancer research.

Unlike some companies that spell out on the tag exactly what percentage of your purchase goes to charity, you have no way of knowing with NFL branded merchandise. The BBB says some companies just flat-out scam people, selling pink ribbons or other pink items and not giving any money to breast cancer research or charities.

In fact, the NFL's claim of 100 percent proceeds from auction and 100 percent proceeds from retail has translated to an average of just $1.1 million every year since they partnered with ACS six years ago.

In the NFL's case, too, there are some clauses written in fine print. Their website claims that, at retail, 100 percent of the NFL's proceeds from Pink October product sales go to the ACS. But that does not mean if you buy a $100 shoe from NFLShop.com, ACS gets $100. If you're buying any pink products from the official shop, the wholesaler, distributor, and retailer give 0 percent of their shares to ACS. (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, Newsweek.com, 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, MichiganNonprofit.com, CORP! Magazine, Crain’s Michigan Nonprofit, ncrp.org, PhilanTopic, Nashville Free Press, Nonprofit Law Blog, Seniors World Chronicle, Carnegie Reporter, Assoc. of Certified Fraud Examiners Examiner, msnbc.com, Worchester (MA) Telegram and Gazette, Carnegie Corporation of America, EO Tax Journal, Wikipedia: Non-profit Organizations; Parent: Wise Austin, Accountants News, Veterans Today, Answers.com, Far-roundtable, #Nonprofit Report, nonprofithelpnews, nonprofit news; National Enquirer, Northwest Herald, The HelpWise Daily, The #Nonprofit Report, Wikipedia (Nonprofit Organization), Answers.com, Nonprofits: On the Brink (2006) Silence: The Impending Threat to the Charitable Sector (2011)

Thursday, October 23, 2014

Lies Killed Human Trafficking Agency

by Gary Snyder


The charity probably best known to fight modern slavery and human trafficking, the U.S.-based Somaly Mam Foundation, made public its decision to cease all operations.

Its leader, Somaly Mam, was found to have falsified her claim of being a former child sex slave in Cambodia.  She had fraudulently embellished her past experiences and accomplishments. The unveiling of the highly publicized allegations had seriously affected some SMF affiliates and grantees — and probably even broader anti-human trafficking and anti-slavery advocacy efforts around the world. One Newsweek article in particular cited multiple discrepancies. The revelations left many reeling, although Simon Marks, the primary reporter breaking the story, had been building his case against Mam’s credibility for some time. Mam, of course, was an icon of the human trafficking field—but iconic status can be dangerous for the adored and adorers alike. (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, Newsweek.com, 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, MichiganNonprofit.com, CORP! Magazine, Crain’s Michigan Nonprofit, ncrp.org, PhilanTopic, Nashville Free Press, Nonprofit Law Blog, Seniors World Chronicle, Carnegie Reporter, Assoc. of Certified Fraud Examiners Examiner, msnbc.com, Worchester (MA) Telegram and Gazette, Carnegie Corporation of America, EO Tax Journal, Wikipedia: Non-profit Organizations; Parent: Wise Austin, Accountants News, Veterans Today, Answers.com, Far-roundtable, #Nonprofit Report, nonprofithelpnews, nonprofit news; National Enquirer, Northwest Herald, The HelpWise Daily, The #Nonprofit Report, Wikipedia (Nonprofit Organization), Answers.com, Nonprofits: On the Brink (2006) Silence: The Impending Threat to the Charitable Sector (2011)

Wednesday, October 22, 2014

A $30 million plus scheme by a nonprofit

by Gary Snyder


  A father and son who ran Narco Freedom, a Bronx-based nonprofit, were indicted on   charges of insurance fraud and grand larceny. 
   
        One allegedly received $13,000 in monthly kickbacks from a real estate developer who rented buildings to Narco—effectively skimming from the $40 million in taxpayer dollars that New York State annually allocated to help fund the group between 2009 and this year, according to investigators. 

      Both defrauded Arch Insurance Company out of $3.5 million by filing a false insurance claim in 2009 for storm damage to a former treatment facility Brooklyn—one of 10 facilities the nonprofit runs citywide. (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, Newsweek.com, 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, MichiganNonprofit.com, CORP! Magazine, Crain’s Michigan Nonprofit, ncrp.org, PhilanTopic, Nashville Free Press, Nonprofit Law Blog, Seniors World Chronicle, Carnegie Reporter, Assoc. of Certified Fraud Examiners Examiner, msnbc.com, Worchester (MA) Telegram and Gazette, Carnegie Corporation of America, EO Tax Journal, Wikipedia: Non-profit Organizations; Parent: Wise Austin, Accountants News, Veterans Today, Answers.com, Far-roundtable, #Nonprofit Report, nonprofithelpnews, nonprofit news; National Enquirer, Northwest Herald, The HelpWise Daily, The #Nonprofit Report, Wikipedia (Nonprofit Organization), Answers.com, Nonprofits: On the Brink (2006) Silence: The Impending Threat to the Charitable Sector (2011)

Monday, October 20, 2014

It Took 13 Years To Nab This Multi-Million Dollar Charity Embezzler

By Gary Snyder


The former board president Russell “Rusty” Brace was able to allegedly steal  $3.8 million over the past 13 years from United Mid-Coast Charities.

The charity maintains that from 2001 until August 2014, Brace took checks from donors earmarked for the charity, deposited them into his account and then withdrew the money for his own use. The current president said that Brace has admitted to the embezzlement.

Paperwork filed in court in the charity’s civil lawsuit against Brace offered more details about his finances, including an account containing $700,000 that refers to “UCRC Char Fund.” Several donation checks were for more than $100,000 with one being $200,000 for the charity. 

The First, N.A. bank allowed Brace to deposit checks made out to the charity into the account of Brace’s Brace Management bank account at that bank. The charity board’s president said that clearly the bank should not have allowed Brace to make those deposits and that it was irregular.

Brace has not been charged with any crime. It is unlikely that charges will be forthcoming in the near future. The charity said it referred the case to the FBI, but federal prosecutions of financial cases can take a year or more to result in the filing of charges. The superintendent of the Maine Bureau of Financial Institutions said that the state agency does not regulate federally-chartered banks such as The First. Federally-chartered banks are regulated by the Comptroller of the Currency. A spokeswoman for that agency said this week that the federal agency does not comment on allegations against specific banks.












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, Newsweek.com, 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, MichiganNonprofit.com, CORP! Magazine, Crain’s Michigan Nonprofit, ncrp.org, PhilanTopic, Nashville Free Press, Nonprofit Law Blog, Seniors World Chronicle, Carnegie Reporter, Assoc. of Certified Fraud Examiners Examiner, msnbc.com, Worchester (MA) Telegram and Gazette, Carnegie Corporation of America, EO Tax Journal, Wikipedia: Non-profit Organizations; Parent: Wise Austin, Accountants News, Veterans Today, Answers.com, Far-roundtable, #Nonprofit Report, nonprofithelpnews, nonprofit news; National Enquirer, Northwest Herald, The HelpWise Daily, The #Nonprofit Report, Wikipedia (Nonprofit Organization), Answers.com, Nonprofits: On the Brink (2006) Silence: The Impending Threat to the Charitable Sector (2011)