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Thursday, May 15

Seattle lesbian health group shuts down after embezzlement charges

Source: KING5 TV
SEATTLE -- Verbena Health, a non-profit that provides health services focused on lesbians in Seattle, has announced that it will temporarily halt all services while charges of embezzlement are investigated.

The head of Verbena Health has been accused of helping herself with the group's donated money.

KING5 reports the Seattle non-profit devoted to helping women filed a report of embezzlement with Seattle Police claiming its executive director "has been misusing company accounts."

Vebena has posted this notice on its website:

It is with great sadness that the Board of Directors of Verbena Health, a health care service provider for lesbian, bisexual and transgender women, is announcing that it is immediately halting all services. This action is being taken to safeguard the integrity and future of the health care programs offered by Verbena until a thorough investigation  of the allegations of financial mismanagement is completed.

It is our hope that at the end of our investigation, the Board of Directors, with the full support of the community, will find a way to continue to provide these essential health  care services, which so many people in the lesbian, bisexual and transgender community have come to rely upon.

KING5's Bernard Choi reports that on Saturday, board members filed a police report claiming they had uncovered evidence showing its executive director had been misusing company accounts, including questionable purchases at Caesars Palace in Las Vegas.

A spokesperson for Verbena Health declined to answer KING5's questions related to the alleged embezzlement. When asked the amount of money involved or the extent of the theft, board member David Haack said, "We just really don't know."

According to the group's IRS Form 990 from 2006, the last year available online, it had annual revenues of $416,000, the bulk of which came from gifts, grants and contributions. The non-profit had expenses of $356,000, for programs like cancer support groups, health workshops and tobacco prevention work. The executive director who joined the group midway through 2006 was listed as having earned $33,750 for that year.

Board member Haack says the group plans on sending out a more detailed letter explaining the situation to donors in the coming days. "The board, the staff, we are all very sad about the situation," Haack said.

According to the police report, board members say they had just learned of the alleged embezzlement over the weekend. They told police they were planning on firing the executive director and going to her West Seattle home to take back her work laptop.

Verbena shares office space on Pike Street with GayCity Health Project, but operates with a separate board and management team.

Full article: Local health provider halts operations to investigate embezzlement claim | KING5
Head of local non-profit accused of embezzlement | KING 5 via MSNBC

hattpip: Slog

Posted by NewsEditor on May 15 2008, 10:02 AM [Permalink]


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