Tuesday, December 19, 2023

Federal Grand Jury Indicts Former Sacramento Goodwill CEO for Allegedly Diverting $1.4 Million

Logo-400x88The Sacramento Bee reports that a federal grand jury indictment unsealed last week charges the former chief executive officer of Goodwill Industries of Sacramento Valley & Northern Nevada for wire fraud and identity theft charges arising from his alleged diversion of $1.4 million in funds from the charity for his own benefit. More specifically, the indictment contains "nine counts of wire fraud, aggravated identity theft and three counts of monetary transactions with proceeds of specified unlawful activity." The article reports that the charity, which is not named in the indictment, fired the CEO in July 2021 after a routine audit discovered a series of questionable transactions, which triggered an internal investigation by the Board of Directors. The DOJ also issued a press release, with a link to the indictment.

While we do not have all the details, it is refreshing to see that a charity's internal controls caught up to the alleged wrongdoing despite the CEO's reported extensive attempts to hide them. And it is reassuring to see a charity's board act promptly and thoroughly to address the discovered irregularities.

Additional coverage: CBS News Sacramento; KCRA.

Lloyd Mayer

https://lawprofessors.typepad.com/nonprofit/2023/12/federal-grand-jury-indicts-former-sacramento-goodwill-ceo-for-allegedly-diverting-14-million.html

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