Saturday, March 29, 2008

White House Aide's Misue of Charitable Funds Caused Resignation

One more story about insider bad behavior and we might as well change the name of this blog to "Inside Edition" or simply, "The Insider."  But then, those names seemed to be taken already.  Today's news regarding a White House staffer's resignation involves, you guessed it, private inurement and excess benefit!  According to the Washington Post, the staffer resigned because the nonprofit organization, Center for a Free Cuba, is suing the staffer for diverting its charitable largess to his "personal gain".  As I mentioned earlier, embezzlement is probably not private inurement but may likely be excess benefit.

Felipe Sixto quit as special assistant to President Bush on March 20 after learning that the nonprofit Center for a Free Cuba planned to take legal action against him, said White House spokesman Scott Stanzel. Sixto was chief of staff at the Washington-based group for about three years before joining the White House's Office of Intergovernmental Affairs last July.

Like Woodward and Bernstein once whispered to Deep Throat, "this [private inurement/excess benefit thing] reaches all the way to the highest levels of the white house!  Follow the money!"  Ok, seriously, we should start following the money, as suggested in the study discussed in the immediately previous post.  Maybe these stories come and go in waves, but they are becoming so regularly that they will eventually have a noticeable negative effect on the entire nonprofit sector.  In the meantime, I am going to Miami to check out some bank accounts managed by "the Committee to Reelect."  My pulitzer can't be far off!

dkj

http://lawprofessors.typepad.com/nonprofit/2008/03/white-house-aid.html

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