Salvation Army Embezzler was a Serial Offender

And another financial manager pleads guilty to a $385,000 fraud for issuing phony rental assistance checks.

A few months back we talked about Wilfred Keaton, accused of embezzling about $166,000 from the Salvation Army ("Oversight: Salvation Army Accounting Flaws Escape Notice").  Now Mr. Keaton has been sentenced, and it has come out that he used some of the money to make fraud restitution to a previous (for-profit) employer, in a case where he remains on probation until 2009.  At the sentencing hearing, Judge Renee White said, "I hope you do not get yourself another bookkeeping job." 

Meanwhile, in Newark, former Salvation Army finance manager Leroy Brown* has pleaded guilty to embezzling $385,760 in rental assistance checks from the Salvation Army between 1995 and 2002.  (Indictment full text.)  The accusation was that he cashed about 585 checks with Susan Bigelow, who was not a Salvation Army employee.  But Mr. Brown himself also created phony client files and check requests to support the fraudulent checks.

* As a policy we try to avoid jokes based on people's names.

Two things about this:  one, that nonprofit fraud is a constant risk, even among large organizations.  Two, that there is often a double standard in coverage, with United Way missteps receiving relative more coverage than embezzlement against the Salvation Army. 

Comments

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Here is more information about mismanagement at the NYC Salvation Army including a link to the New York times article confirming the accounting fraud mentioned.

http://angryinhisname.blogspot.com

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