Former President and CEO of the Minneapolis Regional Chamber of Commerce Pleads Guilty to Fraud
I am including this case in my research library in the folder,” That’s Where the Money Is.” The folder is a collection of cases of local public corruption from across the U.S.
This case involves the Minneapolis Chamber of Commerce which is not a local government but these days the line between government and non-profit organizations is becoming more and more blurred, especially here in Cincinnati.
Moving forward, we will be including reports about fraud involving non-profits in the folder.
In this case, the guy was very, very greedy. Most embezzlers have some human condition such as gambling or drug addiction, substantial debt, or the need to finance an extramarital affair, or some other secret life. This guy was making $275,000 a year but felt the need to embezzle another $213,000 to fund an even more privileged lifestyle.
He used 5 different embezzlement schemes over the course of several years. which is extraordinary.
By my count, Cincinnati grants funding to almost 200 non-profits (including 2 local Chambers of Commerce) with little or no oversight. As I have stated previously, in my view, the city’s practice of funding so many nonprofits is a high risk for fraud.
