Feds: CEF Chief Bilked $90K From Charity
Posted on Wednesday, 24 of September , 2008 at 9:26 am
NEW YORK—Thomas M. Kelly, the former executive director of Community for Education Foundation (CEF), a New York based charity, has been indicted in connection with two schemes to allegedly defraud CEF of over $90,000.
According to the complaint unsealed in Manhattan federal court, CEF is a non-profit corporation that was founded in1992. CEF’s purpose is to assist children ages five to 18 years with the development of life management skills like the ability to communicate effectively, set goals, and make decisions. To do this, CEF provides curriculum materials, training, and support to public schools throughout the United States.
Kelly, 51, of Jersey City, NJ, was employed as CEF’s executive director from 2005 until he was fired on or about March 31. As executive director, he was responsible for CEF’s day-to-day management including supervision of its finances and the sales of its educational products and services to school districts nationwide. Kelly reported to CEF’s founder and chairman of the board and to CEF’s Board of Directors.
Prosecutors say Kelly engaged in two schemes to defraud CEF out of over $90,000. As a part of the first scheme, Kelly established an entity known as “Downtown Jersey City Scholarship Fund”, prosecutors said, which he falsely represented was a part of CEF. Kelly then allegedly used DJCSF to solicit and receive donations totaling approximately $52,481 that he deposited into a bank account that he opened in the name of “Community for Education Foundation/Downtown JC Scholarship Fund”. He then diverted much of the donated money to his personal use.
The second scheme involved the alleged diversion by Kelly of approximately $53,100 that a public school district outside of New York State paid to CEF for certain educational materials. In October 2007, the school district placed an order for CEF’s curriculum materials to use in schools within school district. Prosecutors say Kelly never reported the district’s order to the founder and the board, but instead provided the school district with instructions to wire payment into the DJCSF Account he controlled rather than to CEF’s legitimate checking account.
In January 2008, the school district wired approximately $44,100 into the DJCSF Account. In addition, Kelly deposited a $9,000 check sent by the district into the DJCSF account.
A total of approximately $117,159 was deposited into the DJCSF account. Of this amount, Kelly withdrew approximately $46,500 in checks made payable to himself and diverted an additional approximately $45,000 by issuing a check to an acquaintance.
Kelly is charged with one count of mail fraud and one count of wire fraud. 9-25-08
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Category: Business, Children, Consumers, Courts, Crime, Education, Government, New York State
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