Treasurer Loots Charity Ambulance Company

Three key employees plead guilty in a concerted scheme to steal millions from a large company in suburban Philadelphia from 2001 to 2005.

Without checks and balances, an organization can really get taken.  Plymouth Community Ambulance Association (EIN 23-7240541 Form 990) is the largest ambulance service in Montgomery County, Pennsylvania (Philadelphia suburbs) and it is organized as a 501(c)(3).  The Philadephia Inqirer (Anthony Wood) reports that the former treasurer Harvey Grossman pled guilty to theft of $2.2 million from the organization. 

According to the press release from the district attorney's office, Mr. Grossman personally received $1.3 million by writing PCAA checks to himself, using credit cards for personal expenditures, and writing PCAA checks to private vendors for his purchases.  Board chair Jeffrey Cohen and operations chief George Gilliano also benefitted from the schemes, Mr. Cohen receiving $338,751 and Mr. Gilliano $558,136.  In addition, former vice-president Ruth Volinskie is accused of spending $109,672 of the organization's funds on personal purchases. 

Apparently the fraud came to light by way of a tip to the local police department in late 2005.  The story emerged in 2005 with coverage by the suburban newspaper the Norristown Times Herald (Dan Kelley & Margaret Gibbons): "Plymouth Ambulance Corruption Probe" (12/1/2005) (grand jury probe), "Two Suspended by Board" (12/24/2005), "Home Raided in Ambulance Probe" (1/19/2006) (this is the most fun, with the reporter there while the police raid Mr. Grossman's home, removing most items), "Trio Hauled Away" (3/3/2006), "Fourth arrest warrant issued" (5/18/2006), "Ex-treasurer pleads guilty" (1/5/2007), "Two more admit guilt in PCAA embezzlement scandal" (1/10/2007).

Worth noting is that the names of some board members are not mentioned in the Form 990, such as Ed Ekker, Jr., who is identified in news reports as being a board member.  Just the operating personnel are listed, with the notation that they work "20 to 40 hours" per week and receive no compensation. 

In addition, there is a mention of a loan to Mr. Grossman in the 2003 form.  Other than that, there is little to suggest the massive diversion of funds. 

The size and prominence of this organization (fee revenue of $3 million and a staff of 38) raises the question of whether any organization is safe and what can an organization do to protect itself.  The answer to the first question is simply that no organization is safe, that this can happen anywhere. 

What to do:  at the very least, an organization this size needs to be audited.  If the organization were to receive this much revenue in contributions, an audit would be required.  But if it receives it in fees for service, there is not legal requirement for an audit.  But in practical terms it is needed as a basic cross-check on management. 

The second simple solution is to have several people on the board with a financial background monitoring the financial status of the organization.  It looks like this was not done in this case. 

Can we expect small charities to adopt these simple steps on their own?  I think the answer is no, as this case shows.  There needs to be legislation establishing these basic requirements, at least for organizations as large as this one. 

Comments

[バーバリーマフラー]

ところが、十津川村野尻では増水した川が村営住宅２棟をのみ込んで２家族が流され、五條市大塔町宇井では多数の行方不明者が出ていたことなどから、川上村の被害が広く知られることはなかった
今も現場は土砂に覆われたままだが、迂回（うかい）路も通り、土砂の除去も少しずつだが進む。管轄の吉野土木事務所は「来年４月中旬ごろをめどに、崩落箇所に仮の橋をつくり通行できるようにしたい」としている。
こうした復興のつち音は響いているものの、観光への風評被害は続く。村の観光の中心でもある「ホテル杉の湯」などは通常通り営業しているが、迂回部分に立地するため見逃されがち。

[ティンバーランド]

ティンバーランド１２日に判明した政府の社会保障分野の一体改革素案（骨子案）は、来年の法案提出を検討してきた受診時定額負担制度の見送りを容認するなど、負担増を先送りしようとする民主党の主張に大幅に譲歩する内容となった。公務員の特権に切り込むことが期待された被用者年金一元化でも、公務員の優遇措置の存続に道を開く文言が盛り込まれた。「公平な負担」を旗印とした社会保障改革の看板は大きくゆがみつつある。

　ティンバーランド骨子案は、病院を訪れるたびに患者が１００円を上乗せして支払う受診時定額負担制度について「（導入見送りを掲げた）民主党ワーキングチームの報告を踏まえる」と記した。７０～７４歳の窓口負担の２割への引き上げでは「平成２４年度の対応については調整」と、その後の引き上げに含みを残したが、党側の猛反発で撤回に追いやられるのは確実な情勢だ。