Autism Charities Are Piggybank For Founders

 by Gary Snyder

For the second time, Brandie Christian was caught in a scam involving assistance to children with autism. 

Just two years ago, the state Attorney General’s Office forced the closure of one charity, Autism Awareness United, following allegations of malfeasance there. Christian worked for that charity, which saw donated money misspent prior to its closure.

After that closing, Christian and her husband launched Autism Outreach Foundation. They incorporated the charity as a nonprofit in December 2012, naming friends and family to its board before beginning to collect donations. The charity brought in well over $400,000 since its founding, but only $4,000 has been distributed to needy families. She spent donations on designer jeans, trinkets from a Vantage gem shop, skin care products and shoes, according to a lawsuit and also made cash withdrawals from the charity account. Thousands of dollars in donations remain unaccounted for.

The state consumer protection investigators contend she and husband Joshua Hani have been scamming donors to the charity they launched. Attorneys for the state filed a civil lawsuit against the pair in an effort to shut down the Autism Outreach Foundation. The organization – which hasn’t issued a single grant to a struggling family in 2014 – appears to still be collecting money from donors. (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)

Madoff-like: Charity, Friends and Business Swindled

by Gary Snyder

In 2013, Steven Wessel founded the Warrior Family Foundation, which was characterized in news releases and on the group's website as a research-based not-for-profit corporation to address the needs of military families. In talking to potential donors, Mr. Wessel often said he had worked for former Presidents Ronald Reagan and George H.W. Bush, according to former members of the foundation as well as being a Oxford graduate.

At a fundraiser at the Four Seasons in New York, Warrior board members said they were surprised to see donation forms on the tables, where their friends, business associates and members of other organizations, including the USO, sat. The board members said that their understanding had been that they wouldn't raise money until they secured nonprofit status. Mr. Wessel, who board members said controlled the foundation's money, never paid the Four Seasons, according to a hotel manager.

It isn't clear how much money the foundation raised. Thomas Clifford, the foundation's president and a longtime business associate of Mr. Wessel, said bank records he reviewed showed about $100,000 had gone into an account, largely from Mr. Wessel directly. Today, the account remains open but has no money in it. He declined to provide full details on where the money went.

In further investigation, federal agents are looking into allegations that Mr. Wessel swindled about $750,000 from a doctor and a financial professional in a Ponzi scheme-style fraud. In court documents and interviews with Mr. Wessel's friends and charity colleagues, a picture emerges of a serial fraudster who used high-level connections to solicit hundreds of thousands of dollars to support a lavish lifestyle, including meals at Michelin-starred restaurants and parties in the Hamptons.

On June 25, less than two months after the dinner, U.S. marshals arrested him at the Upper West Side co-op he shares with his wife.

"Steven Wessel was much less an investment banker than a serial liar," U.S. Attorney Preet Bharara said when the charges were announced.

The U.S. Attorney's Office says Mr. Wessel used newly received funds to pay off past investors and for personal gain. Authorities say he used a shell investment bank, Windsor Capital Investments Ltd., and a personal investment company, Steeplechase USA LLC, to solicit the funds between June 2013 and April 2014.

In one instance, authorities say, Mr. Wessel told an investor who had put in $200,000 that as of Oct. 21, 2013, five securities in the company's long-term portfolio had gained between 27% and 61%. He ended the email with "Just showing off!"

In April, according to the U.S. Attorney's Office, Mr. Wessel told the investor he would be getting about $249,000 back for his investment. At the time, the authorities say, Mr. Wessel's bank account had $4.06.

Authorities say Mr. Wessel received a wire transfer of $550,000 from another investor who believed the money was being used as a bridge loan for a real-estate development. That same day, Mr. Wessel allegedly wrote a bank check to the first investor.

In truth, records from both administrations and the White House's Council of Economic Advisers could not find any record of Mr. Wessel. And Oxford has no record of his attending, according to authorities. (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)

We Apologize For Misinformation

by Gary Snyder

A blog called politicalears.com posted an article stating that the Ice Bucket Challenge was a "fraud" because most of the money was being spent on administration and overhead. The unsigned post was picked up widely on social media feeds including Nonprofit Imperative.

We verified the numbers but did not verify the implications as well as the website. There was no contact information. We missed on a number of scores.

The post cites standards by ECFA, the Evangelical Council for Financial Accountability, a very credible group founded in 1979 that "enhances trust in Christ-centered churches and ministries by establishing and applying Seven Standards of Responsible Stewardship to accredited organizations." However, we did not contact ECFA.

ECFA President Dan Busby, the group’s president, told PolitiFact that his group does not concur with the argument made in the post.

We further did not check the scores of the association with Charity Navigator, for instance, which gave the ALS Association a score of four stars out of four for financial standards and transparency and accountability. The association is "Top Rated" by Charity Watch, is accredited by the Better Business Bureau and is a Guidestar Exchange gold participant.

  

What we did is we propagated some questionable information because we got lazy and sloppy.

For that, we sincerely apologize to the association and all those that may have been hurt as a result.

We must, and will be, held to a higher standard.

We have taken down the original blog.

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)

Homeland Security Employee and Nonprofit Are Charged With $300,000 Fraud

by Gary Snyder

Barry Croall, a program manager for Cook County's Department of Homeland Security and Emergency Management, was to hire a nonprofit corporation to perform services that were eligible to be paid through flooding grant funds.

He arranged a nonprofit organization, Strategic Management Services S.M.S. LLC, as well as three other businesses, to submit false documents inflating the amount they were owed. In return, the companies would get kick-backs, pocketing portions of the grant monies, said prosecutors.

Croall also found ways to get funding from outside vendors including being employed as an independent contractor for one of the companies for two years with an annual salary of $72,000, said prosecutors.

He is accused of stealing about $300,000 from the program.

Prosecutors said Croall used the stolen funds toward his mortgage payments for rental property he owned in Yorkville and for the purchase of a condo unit. He also paid his credit card bills, homeowner association fees and automobile loan.

Croall hasn't been an employee of the county since at least May 2011

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)

Prosecutor: Public Embezzlement is "more prevalent than we would like to believe"

by Gary Snyder

Embezzlement from public institutions and offices is distressingly common.

In just a smalll part of Colorado, thieves keep finding new ways to skim money from the public coffers.

Let’s take a look at a few examples:

·                               Gunnison County School District $400,000

·                               Paonia $400,000

·                               Marble $300,00

·                               Garfield County $200,000

·                               Garfield District Court Clerk’s Office $19,422

·        

Garfield County Treasurer Georgia Chamberlain says, “It’s really hard to regulate against fraud.” She who works closely with the county’s other elected officials and department heads. “The scary part is there always seem to be ways around anything you set up to prevent it, especially when there is a lot of money that passes through.”

Chamberlain said she employs several safeguards to protect money through her office. “We have a fiscal manual that outlines all of the procedures that we must follow,” James Bradford, clerk of the combined district and county courts in Garfield County said. “Every few years, we have our audit people come in and audit every aspect of what we do. Every kind of payment we send out, bank deposits, any transactions, are all closely scrutinized.”

Ninth District Attorney Sherry Caloia complained that embezzlers, both public and private, often get off with no prison time. And restitution payments after sentencing can be reduced to a minimum amount of as little as $15 to $25 per month, meaning the likelihood of full recovery of the money is remote, she said.

“It’s very upsetting, because unless these cases are treated very harshly the deterrent effect is not there,” she said.

Public embezzlement is “more prevalent than we would like to believe,” she said. Not only is prison time a strong message, but she said she has been working with the probation office to obtain a better financial profile on the offenders, including real estate, vehicles and retirement accounts, to determine their ability to pay restitution. (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)