A former West Michigan church deacon who authorities say took $120,000 in cash from the weekly offertory basket has been sentenced to a year in jail.
Joseph Finnigan, 73, was sentenced earlier this week in Ottawa County Circuit Court after earlier pleading guilty to two counts of larceny over $20,000. He was also ordered to four years of probation, 250 hours of community service and he must pay restitution of $120,000.
Finnigan told the court that he took full responsibility for his actions, saying he was “truly sorry” for violating the law and violating the trust of parishioners.
“I really honestly never imagined that I’d be in this position… I’ve always tried to do the right thing but I didn’t this time,” he said. “I must be punished. And I’ll spend the rest of my life trying to make restitution and trying to redeem myself.”
Finnigan had worked as a deacon at St. Patrick’s Catholic Church in Grand Haven for 11 years before being fired in November. Church officials say the embezzlement occurred from 2007 to 2012.
Monday, May 6, 2013
Sunday, May 5, 2013
Former Vicksburg, Michigan principal Greg Tibbetts files insanity defense; investigation expands to embezzlement
FROM MLIVE.COM -
The attorney for Greg Tibbetts, the former Vicksburg Middle School principal accused of having an inappropriate relationship with a Vicksburg student, has filed notice that he is pursuing an insanity defense in the case.
The notice was filed May 1 by attorney Michael Hills in Kalamazoo County Circuit Court, where Tibbetts is facing 13 counts of criminal sexual conduct and using a computer in association with child pornography.
Meanwhile, Vicksburg Assistant Superintendent Steve Goss, who oversees the district's finances, said Friday that district officials are working with the Kalamazoo County Sheriff's Office to investigate about $15,000 in suspicious purchases on a district-owned credit card controlled by Tibbetts.
No criminal charges have resulted yet, authorities say. Word of the probe got out because sheriff deputies are interviewing middle-school staff.
“Vicksburg Community Schools takes its fiduciary responsibility very seriously and has a zero tolerance policy with regard to misuse of funds. Accordingly, the District intends to pursue charges against Mr. Tibbetts to the fullest extent of the law,” Goss said in a written statement issued Friday morning.
Tibbetts, 42, was principal of Vicksburg Middle School for nine years. He resigned his job last fall in the wake of accusations that he was sexually involved with a 16-year-old Vicksburg student.
The sheriff department's report said the boy was first befriended by Tibbetts in 2010, when he was an eighth-grader at Vicksburg Middle School.
The alleged relationship was discovered last September when the 16-year-old's mother discovered a sexually explicit text message exchange between her son and someone who appeared to be Tibbetts.
The police investigation also uncovered another lengthy text message exchange that suggests Tibbetts was texting as he was performing a sex act in front of an Internet camera for the teen.
In addition, deputies found photos of young men on Tibbetts' school-owned iPad. None of the photos appeared to be of Vicksburg students.
Hills could not be reached this morning to comment on the insanity defense.
However, Carrie Klein, chief assistant in the Kalamazoo County Prosecutor's Office, the next step is for a judge to order a psychiatric evaluation at the state forensic center in Ypsilanti.
"They will render an opinion on whether Mr. Tibbetts is mentally ill and whether he meets the level of insanity" that would allow for such a defense, she said.
Klein said that the defense and prosecution also can have their own experts examine Tibbetts and offer their opinion.
In Michigan, a criminal defendant is considered insane if he or she cannot distinguish right from wrong because of mental illness or if the mental illness is such that even though the person understands what they are doing is wrong, there is an overwhelming, uncontrollable compulsion to commit a criminal act.
In cases involving an insanity defense, there are three possible verdicts: Guilty, where the jury rejects the claim of insanity; guilty, but mentally ill, which doesn't impact the sentence but could affect the services that the defendant receives in the prison system, and not guilty by reason of insanity, in which case the defendant is turned over the jurisdiction of the state mental health system.
Insanity "is not asserted often" in Kalamazoo County criminal cases, Klein said, and "in the cases where it is asserted, it's usually not the verdict that is returned."
On the embezzlement investigation, Goss said that the suspicious charges turned up after Tibbetts' district-owned credit card had been compromised by credit card theft unrelated to Tibbetts.
As district officials were studying the credit card statements to rectify that situation, they discovered suspicious purchases made by Tibbetts.
“During the last several months, multiple purchases approved by Mr. Tibbetts appeared suspicious in nature," Goss said in his written statement. "Digging deeper, the district discovered a possible pattern going back approximately a year where Mr. Tibbetts seemed to have used district and lacrosse team money for personal expenses.”
Goss said the purchases includes gift cards, prepaid cellphones and minutes, clothes and groceries.
One especially suspicious purchase was a surveillance camera disguised as a clock radio. Tibbetts told Goss that he made the purchase to uncover petty theft in the middle school central office and that the camera/clock was returned.
However, the middle-school office staff said they were unaware of a petty theft problem and the vendor who sold the clock said it had not been returned.
Goss said the district anticipates "100 percent recovery" of any money spent on unapproved expenditures, with restitution coming from either Tibbetts or the district's insurance.
Goss said the district also reviewed its controls on the 15 credit cards it issues to employees. He said that the cards are used to streamline "everyday purchases, such as school supplies," and typically two employees are required to sign off on purchases and review monthly statements.
In the case of Tibbetts, Goss said, unbeknownst to central administrators, "he had taken over control of the card and eliminated" the review by the second person.
"It was a situation unique to that individual and that building," Goss said.
In addition, Goss said, the system involves a level of trust that Tibbetts appeared to violate.
"Frankly, he was a highly, highly trusted member of our administration team," Goss said, adding that it goes to show that "trust is no substitute for financial controls."
The attorney for Greg Tibbetts, the former Vicksburg Middle School principal accused of having an inappropriate relationship with a Vicksburg student, has filed notice that he is pursuing an insanity defense in the case.
The notice was filed May 1 by attorney Michael Hills in Kalamazoo County Circuit Court, where Tibbetts is facing 13 counts of criminal sexual conduct and using a computer in association with child pornography.
Meanwhile, Vicksburg Assistant Superintendent Steve Goss, who oversees the district's finances, said Friday that district officials are working with the Kalamazoo County Sheriff's Office to investigate about $15,000 in suspicious purchases on a district-owned credit card controlled by Tibbetts.
No criminal charges have resulted yet, authorities say. Word of the probe got out because sheriff deputies are interviewing middle-school staff.
“Vicksburg Community Schools takes its fiduciary responsibility very seriously and has a zero tolerance policy with regard to misuse of funds. Accordingly, the District intends to pursue charges against Mr. Tibbetts to the fullest extent of the law,” Goss said in a written statement issued Friday morning.
Tibbetts, 42, was principal of Vicksburg Middle School for nine years. He resigned his job last fall in the wake of accusations that he was sexually involved with a 16-year-old Vicksburg student.
The sheriff department's report said the boy was first befriended by Tibbetts in 2010, when he was an eighth-grader at Vicksburg Middle School.
The alleged relationship was discovered last September when the 16-year-old's mother discovered a sexually explicit text message exchange between her son and someone who appeared to be Tibbetts.
The police investigation also uncovered another lengthy text message exchange that suggests Tibbetts was texting as he was performing a sex act in front of an Internet camera for the teen.
In addition, deputies found photos of young men on Tibbetts' school-owned iPad. None of the photos appeared to be of Vicksburg students.
Hills could not be reached this morning to comment on the insanity defense.
However, Carrie Klein, chief assistant in the Kalamazoo County Prosecutor's Office, the next step is for a judge to order a psychiatric evaluation at the state forensic center in Ypsilanti.
"They will render an opinion on whether Mr. Tibbetts is mentally ill and whether he meets the level of insanity" that would allow for such a defense, she said.
Klein said that the defense and prosecution also can have their own experts examine Tibbetts and offer their opinion.
In Michigan, a criminal defendant is considered insane if he or she cannot distinguish right from wrong because of mental illness or if the mental illness is such that even though the person understands what they are doing is wrong, there is an overwhelming, uncontrollable compulsion to commit a criminal act.
In cases involving an insanity defense, there are three possible verdicts: Guilty, where the jury rejects the claim of insanity; guilty, but mentally ill, which doesn't impact the sentence but could affect the services that the defendant receives in the prison system, and not guilty by reason of insanity, in which case the defendant is turned over the jurisdiction of the state mental health system.
Insanity "is not asserted often" in Kalamazoo County criminal cases, Klein said, and "in the cases where it is asserted, it's usually not the verdict that is returned."
On the embezzlement investigation, Goss said that the suspicious charges turned up after Tibbetts' district-owned credit card had been compromised by credit card theft unrelated to Tibbetts.
As district officials were studying the credit card statements to rectify that situation, they discovered suspicious purchases made by Tibbetts.
“During the last several months, multiple purchases approved by Mr. Tibbetts appeared suspicious in nature," Goss said in his written statement. "Digging deeper, the district discovered a possible pattern going back approximately a year where Mr. Tibbetts seemed to have used district and lacrosse team money for personal expenses.”
Goss said the purchases includes gift cards, prepaid cellphones and minutes, clothes and groceries.
One especially suspicious purchase was a surveillance camera disguised as a clock radio. Tibbetts told Goss that he made the purchase to uncover petty theft in the middle school central office and that the camera/clock was returned.
However, the middle-school office staff said they were unaware of a petty theft problem and the vendor who sold the clock said it had not been returned.
Goss said the district anticipates "100 percent recovery" of any money spent on unapproved expenditures, with restitution coming from either Tibbetts or the district's insurance.
Goss said the district also reviewed its controls on the 15 credit cards it issues to employees. He said that the cards are used to streamline "everyday purchases, such as school supplies," and typically two employees are required to sign off on purchases and review monthly statements.
In the case of Tibbetts, Goss said, unbeknownst to central administrators, "he had taken over control of the card and eliminated" the review by the second person.
"It was a situation unique to that individual and that building," Goss said.
In addition, Goss said, the system involves a level of trust that Tibbetts appeared to violate.
"Frankly, he was a highly, highly trusted member of our administration team," Goss said, adding that it goes to show that "trust is no substitute for financial controls."
Top Ten Tips for Preventing Theft and Embezzlement
It seems like a new story breaks every week about a charity being exploited by an insider. Charities lose an estimate of 7%-13% percent of their annual profits to theft, embezzlement, or fraud, to the tune of approximately 40 billion dollars a year.
Nonprofit organizations are often hesitant to report these losses to authorities for fear of tarnishing their reputation. Don’t fall prey to this instinct: not reporting these losses jeopardizes insurance coverage and communicates the wrong message to employees and funders. If the individual had substantial influence, the loss may also be an excess benefit transaction reportable on Form 990. Tips to help tighten an organization’s asset control include the following:
Institute Strong Financial Oversight Policies. An organization should have in place strong, specific financial oversight and financial control policies that are tailored to the specific organization including a strong whistleblower policy. Periodically review finances and finance management to ensure that the Board, as well as employees, is consistently using the policies.
Ensure Theft is Covered by Insurance Policies. A general liability policy that covers employee theft and embezzlement is a must for nonprofits with significant assets.
Educate Staff. Educate staff about online fraud scams and other financial concerns. Foster an environment of responsibility.
Have More Than One Set of Eyes on Finances. Specifically, have someone other than a signer on a transaction review the transaction and regularly balance the books. Audits are good, but are not designed for catching fraud or theft unless you specifically request this type of audit. Require dual authorized users for administrative security changes and for online transactions, as two separate authorized users on separate devices reduces exposure to asset loss. Require that original invoices be reviewed before checks are signed, and that original receipts are used.
Implement a Signature Authority Policy. Implement a policy that requires progressive authorization (e.g., CEO, CEO plus one board member, Board Resolution) based on the size of the transaction or the duration of a contractual obligation.
Know your Team. Institute background checks on Board Members, staff, and any key volunteers with access to the organization’s assets. Conduct a criminal background check as well as speak to at least three references. Research shows that most nonprofit embezzlement is perpetrated by trusted insiders and that a surprising percentage (up to 15%) of offenders have been convicted of a similar offense in the past.
Keep Authorizations Up to Date. When an authorized signor or approver leaves the organization, notify the bank immediately to have that person removed. Shred and destroy any out of date card stock, credit cards, and signatory stamps. Collect any credit cards, keys or other asset-control related items from departing staff or Board Members. Also, keep anti-virus software up to date
Lock Up Assets. Keep credit cards, check stock and signature stamps under lock and key.
Set a Schedule to Conduct Fixed Asset Inventories. If the organization owns a significant amount of fixed assets or equipment, conduct fixed asset inventories annually.
Know the Signs. Often, a person trying to steal from an organization acts in peculiar ways. They may be strangely reluctant to take time off, and may regularly work weekends or evenings after everyone else has left, out of step with the habits of others. Take note of late, erratic, or incomplete financial asset reporting, or frequent excuses blamed on technology, as such behavior is common. Also, in our experience, the perpetrator is most often motivated by a drug habit or a gambling addiction and is often a person in a highly trusted position.
Following these 10 proactive steps to protect your organization’s assets will greatly reduce the odds that your organization will have its reputation and balance sheet stained by theft and embezzlement.
St. John's University in New York President Donald Harrington Resigns Amid Scandal
Father Donald Harrington, president of St. John's University in New York City, announced Friday in a campuswide email he will resign on July 31, while barely alluding to the embezzlement scandal plaguing his administration.
"For quite a while, I have been thinking about when would be the best time to relinquish the leadership role to younger, perhaps more energetic, individuals," Harrington wrote in the letter. "The urgings of many members of the Board of Trustees and others persuaded me to remain longer than I had originally planned. But the difficulties for everyone during the past year have convinced me, after much prayer and reflection, that the time to leave the presidency has now come."
Harrington boasted about increases in donations to St. John's and a growth in the university's investment portfolio during his 24 year tenure. He avoided mentioning Cecilia Chang, a former dean and vice president of international relations at the university, who was accused of embezzling more than $1 million from St. John's prior to her November suicide.
New York magazine reported in February that Chang and Rob Wile, Harrington's chief of staff, lavishly spent university money on overseas shopping trips and expensive hotel stays. Wile also took out secret loans from a former St. John's Board of Trustees chair to help fund a real estate venture with Harrington, according to New York. The duo did not disclose the loan or the real estate project to the board.
Wile also resigned, but according to the New York Post, his resignation doesn't take effect June 30. An investigation into alleged misuse of university money on the part of both Wile and Harrington is ongoing.
New York Police Commissioner Ray Kelly, a St. John's Law School graduate, praised Harrington in a statement Friday.
"As an alumnus of its law school, I’ve witnessed with pride as Father Harrington strengthened St. John’s academically and physically with new facilities and buildings, while holding fast to the Vincentian mission that has drawn so many of the University’s alumni to public service," Kelly said.
Cardinal Timothy M. Dolan also celebrated Harrington in his own statement.
"Father Harrington has been a beacon of light for Catholic education in the United States for decades," Dolan said. "His leadership and thoughtful planning of growth for one of this country’s largest Catholic universities have brought a very high level of success to the St John’s community. And tens of thousands of students, alumni and faculty have been enriched by his spiritual leadership
Friday, May 3, 2013
Chesterfield, Virginia school cafeteria worker accused of embezzlement
A Chesterfield cafeteria worker is facing charges Thursday night – accused of stealing money from the school where she worked.
Tabatha Heyman has been charged with felony embezzlement. Chesterfield Police received the report last week.
Heyman allegedly stole at least $200 from Monacan High School.
She's due back in court June 24.
Thursday, May 2, 2013
Banks broke us, Collier County, Florida school says
A defunct Naples school has sued two national bank chains, claiming their actions contributed to the school’s financial ruin and closure.
Journeys Academy, a private, nonprofit school serving children with disorders such as autism, ADHD and Down syndrome, closed after its chief financial officer was accused in 2009 of embezzling $360,000 from the school. The accused, Larry Christopher, was indicted in federal court but died before he could serve time in prison. Now a lawsuit filed in federal court this month claims PNC Bank and Liberty Bancshares could have prevented the theft if they had better safeguards.
“They allowed a nonauthorized person to masquerade as Journeys Academy,” according to Tucker Byrd, an Orlando attorney representing the school.
But an attorney for the defense said there’s no way his client could have known.
Christopher allegedly made several unauthorized wire transfers from the school’s PNC account and deposited the money in a Liberty account he fraudulently opened in the school’s name, according to his federal indictment. He then withdrew that money for himself.
Byrd said the fraudulent transfers should have raised numerous red flags. PNC was in the habit of contacting Journeys directly whenever a large sum was withdrawn from its account, and Journeys had never before made a wire transfer. But no one notified the school’s administration when 43 such transfers were made in six months, according to the lawsuit.
Craig Goddy, a Naples attorney representing Liberty Bancshares, said there is no way his client or PNC Bank could have known Christopher’s dealings were fraudulent.
“I think Liberty did everything they could have done to make sure this didn’t happen,” Goddy said. “And basically as soon as Liberty found out about all this, accounts were shut down or frozen and ... what money there was returned to Journeys.”
Byrd said Christopher had drained the school’s funds.
Goddy couldn’t comment on Liberty’s specific procedures for verifying accounts, but said precautions were taken.
Christopher opened the Liberty account using a corporate resolution — a document that supposedly gave him authority to open an account in the school’s name. Goddy said there’s no way Liberty could have known the resolution was forged.
“It’s really not like someone came in off the street,” Goddy said. “This was a bad guy inside the company.”
Goddy filed a motion last week to dismiss the lawsuit. He expects a ruling on the motion in about a month.
Journeys filed the lawsuit in Collier County Circuit Court in March, but the case was since removed to federal court.
Miami attorney John Bustard, representing PNC Bank, declined comment.
Byrd said the school, which catered to children everyone else had given up on, collapsed after its bank account was emptied.
“The school was built on the promise to build character and encourage self discovery in students of all abilities,” according to the lawsuit, “and to inspire them to achieve more than ever thought possible.”
Journeys Academy, a private, nonprofit school serving children with disorders such as autism, ADHD and Down syndrome, closed after its chief financial officer was accused in 2009 of embezzling $360,000 from the school. The accused, Larry Christopher, was indicted in federal court but died before he could serve time in prison. Now a lawsuit filed in federal court this month claims PNC Bank and Liberty Bancshares could have prevented the theft if they had better safeguards.
“They allowed a nonauthorized person to masquerade as Journeys Academy,” according to Tucker Byrd, an Orlando attorney representing the school.
But an attorney for the defense said there’s no way his client could have known.
Christopher allegedly made several unauthorized wire transfers from the school’s PNC account and deposited the money in a Liberty account he fraudulently opened in the school’s name, according to his federal indictment. He then withdrew that money for himself.
Byrd said the fraudulent transfers should have raised numerous red flags. PNC was in the habit of contacting Journeys directly whenever a large sum was withdrawn from its account, and Journeys had never before made a wire transfer. But no one notified the school’s administration when 43 such transfers were made in six months, according to the lawsuit.
Craig Goddy, a Naples attorney representing Liberty Bancshares, said there is no way his client or PNC Bank could have known Christopher’s dealings were fraudulent.
“I think Liberty did everything they could have done to make sure this didn’t happen,” Goddy said. “And basically as soon as Liberty found out about all this, accounts were shut down or frozen and ... what money there was returned to Journeys.”
Byrd said Christopher had drained the school’s funds.
Goddy couldn’t comment on Liberty’s specific procedures for verifying accounts, but said precautions were taken.
Christopher opened the Liberty account using a corporate resolution — a document that supposedly gave him authority to open an account in the school’s name. Goddy said there’s no way Liberty could have known the resolution was forged.
“It’s really not like someone came in off the street,” Goddy said. “This was a bad guy inside the company.”
Goddy filed a motion last week to dismiss the lawsuit. He expects a ruling on the motion in about a month.
Journeys filed the lawsuit in Collier County Circuit Court in March, but the case was since removed to federal court.
Miami attorney John Bustard, representing PNC Bank, declined comment.
Byrd said the school, which catered to children everyone else had given up on, collapsed after its bank account was emptied.
“The school was built on the promise to build character and encourage self discovery in students of all abilities,” according to the lawsuit, “and to inspire them to achieve more than ever thought possible.”
Police investigate possible embezzlement of West Pelzer Elementary PTO account in South Carolina
Police are investigating a possible embezzlement of at least $3,300 from a West Pelzer Elementary School PTO account, police and school officials said.
“We do have a suspect,” said West Pelzer Police Chief Mike Clardy.
A forensic audit will have to be done going back about two and a half years to determine how much money is missing, he said, which could take a couple of weeks.
“It’s an ongoing investigation,” he said.
David Havird, associate superintendent of Anderson District 1, said the money was taken from a PTO account.
“We are wrapping up the investigation and feel pretty comfortable that we have recovered the majority of the funds,” Havird said.
PTO funds aren’t under the school or school district’s control, he said.
“We do have a suspect,” said West Pelzer Police Chief Mike Clardy.
A forensic audit will have to be done going back about two and a half years to determine how much money is missing, he said, which could take a couple of weeks.
“It’s an ongoing investigation,” he said.
David Havird, associate superintendent of Anderson District 1, said the money was taken from a PTO account.
“We are wrapping up the investigation and feel pretty comfortable that we have recovered the majority of the funds,” Havird said.
PTO funds aren’t under the school or school district’s control, he said.
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