Oct 29, 2013
03:53 PM
The Connecticut Story

Washington Post Database: 11 Connecticut Non-Profits Suffered from Embezzlement, Theft

Eleven non-profit organizations in the state reported significant diversions of assets—meaning funds were stolen, embezzled or misappropriated, accumulating into the hundreds of thousands, according to documents published by The Washington Post.

The Washington Post identified more than 1,000 total organizations that reported such diversions throughout the country, examining financial disclosure reports starting in 2008. The database, published Monday, shows 11 Connecticut organizations reported revenue losses due to such diversions.

The information is recorded in the IRS Form 990—that most tax-exempt organizations must file annually. The Post’s reporting shows how many organizations don’t fully explain how funds were lost, despite being mandated to do so.

According to the 990 forms for each of the Connecticut organizions identified, money was embezzled or stolen in a range of sums.

-          Stamford Hospital and Stamford Health System Inc. is included in the list for their filing in 2009, when employees allegedly didn’t turn over cash payments received from patients coming to a former clinic at the hospital.

-          Wesleyan University is also on the list, after an employee engaged in “non-approved outside investment activities” their form says. The amount lost exceeded $250,000 and was being litigated at the time.

-          Project Genesis Incorporated in Willimantic, lost $348,000 to an embezzling employee. They are expecting to recover $330,000 of the losses from insurance and restitution from the employee, their form says.

-          Bulls Bridge Golf Club Inc. in South Kent discovered in 2010 forged checks were being issued to an employee’s son.

-          The Mark Twain House reported two years’ worth of diversionary assets of $72,600 and then $250,820 after “employee misconduct.”

-          The Health and Welfare Fund 1253 for the Brotherhood of Electrical Workers Union in Wallingford suffered losses of $272,306 after the plan administrator made unauthorized withdrawals and “misappropriated funds.”

-          The Newington Volunteer Ambulances Corp discovered in 2008 funds had been taken over a four year period. They expect the “individual responsible” to replace the funds.

-          The American Legion in Bristol reported for two years a diversion of assets. Their form states a finance officer misused funds, and prosecution is ongoing, at the time the form was filled out.

-          The Ancient Free & Accepted Masons of Connecticut in Waterbury reported in 2011 an officer had misappropriated funds for a total of $17,060. The officer was removed and has started to repay the taken money.



Washington Post Database: 11 Connecticut Non-Profits Suffered from Embezzlement, Theft

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