A board member for the Somerville Homeless Coalition was reviewing the nonprofit’s annual financial documents in 2015 when he spotted something odd. The forms said the chief operating officer, the No. 2 executive, earned $12,000 more than the organization’s top executive the previous year. Could that really be correct, he asked?
Turns out it wasn’t a typo. It was theft.
Somerville Homeless soon discovered that the COO — who handled all the finances — allegedly embezzled approximately $108,000 over 18 months. The charity said he brazenly added some of the money directly into his paycheck — where it showed up on the group’s annual financial forms — used the organization’s credit card for personal expenses, and added his middle-aged son to the group’s health insurance.
“The whole thing has been a nightmare,” said Mark Alston-Follansbee, executive director of the Somerville nonprofit, which provides food, shelter, and other assistance to about 2,000 people annually. “The money he stole from us could have prevented 100 families from going homeless.”
More than 1,100 tax-exempt organizations nationwide have reported theft, embezzlement, or other major diversions of assets over the past seven years, according to electronic filings with the Internal Revenue Service. And experts say the total number of thefts is almost certainly far higher, because most cases of fraud are either never detected or reported in the digital filings.
“It’s shockingly common,” said Gerry Zack, a certified fraud examiner who recently was named incoming chief executive of the Society of Corporate Compliance and Ethics, a Minneapolis-based organization.
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16 comments:
Sounds amazingly similar to a Three Letter Company that we have in Salisbury where it had several ghost employees that were members of the family. They are no longer there nor does the Three Letter Company still exist by that name. I hear that there is a much better bunch running the show now.
Rebel Without a Clue said...
Sounds amazingly similar to a Three Letter Company that we have in Salisbury where it had several ghost employees that were members of the family. They are no longer there nor does the Three Letter Company still exist by that name. I hear that there is a much better bunch running the show now.
January 29, 2018 at 2:08 PM
Name names please.
There are 3 things that happen whenever an employee steals from his/her employer:
Opportunity
Entitlement
Expectation of NOT getting caught
Whenever you see embezzlement, someone in the organization allowed the first tenant to happen. Without it, the last is very difficult.
The second tenant is common with MOST employees - we all feel entitled to more than what we're getting.
If your company has the same person writing the checks AND doing the books, change it this week - unless, of course, it's the owner.
Keep donating your money to ORGANIZATIONS and this is what you will get.
Donate directly to human beings.
Eyeball to eyeball.
This sounds just like Jack Heath and the situation where nearly $1 Million dollars disappeared under his watch at the Lower Shore Enterprises.
2:33 PM not sure why they even bothered to comment when they are taking in code. Stupid
When I worked for the American Cancer Society and those kids would turn in their money from Walk-a-thons, Bike-a-thons, and other fund raisers, we would split it up between us 3 working in the office. Never were caught, cuz kids are unreliable so you just say they never turned in any money.
The name was in the Three Letter Company Anon 233 PM
Turn the Non-Profits over to the Churches and Philanthropist's that don't expect to collect CEO salaries.
Yes I know of a company who writes the checks and does the books but try proving it.
That is disgusting!! How can you live with yourself. People dying of cancer; children trying to help and you abuse both. Remember cancer can strike anyone - who knows you three maybe next and you can't be helped because you stole from research 💰???
Yes agree. Do away with Good Will. They are a business now. Only 20 percent of monies go to the charity. The rest is administrative. Their profit is in the billions.
Dirtbag.
Anonymous said...
2:33 PM not sure why they even bothered to comment when they are taking in code. Stupid
January 29, 2018 at 4:36 PM
Exactly!
2:33
Rebel Without a Clue said...
The name was in the Three Letter Company Anon 233 PM
January 29, 2018 at 5:52 PM
We still don't know WTF you are talking about. Just name names!
Anonymous said...
Yes agree. Do away with Good Will. They are a business now. Only 20 percent of monies go to the charity. The rest is administrative. Their profit is in the billions.
January 29, 2018 at 10:17 PM
My sister was friends with the management at the Goodwill Store in Salisbury and my sister told me the manager would take all the Longaberger Baskets that were donated and take them home to sell on eBay and Facebook. That is stealing. Even if this woman paid a price for the baskets she is still ripping off the store and cheating the customers. I've always wondered why I never saw any Longaberger Baskets at the Goodwill. No wonder there is never any of their baskets for sale there. No telling what else is taken from the staff that the customers never get to see. Their prices are outrageous as Hell as well.
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