What Board Members Need To Know...

CT Nonprofit Treasurer Guilty of Embezzling over $150,000

Nonprofit corporation board members have the same problem that board members all over the world have; crooked fellow board members.  In Connecticut, Thomas Recck plead guilty to federal crimes for stealing over $150,000 from a nonprofit canine search and rescue organization which he “served” as treasurer..  Unlike many crooked board members who don’t get caught, this one did.  He took the nonprofit’s money and moved it over into a bank account which he exclusively controlled to pay for gambling and other personal expenses.  What were the other board members and officers of the organization doing while Recck committed his crimes; nothing.  Why didn’t they have access to bank statements so that they could review them at least on a monthly basis whenever and wherever they wanted.  This is a question that remains unresolved.  In the meantime, Recck could go away for up to 20 years.  If you’re a board member of a nonprofit, be proactive and watch your other board members and please keep an eye on the money and your entity’s documents.  Otherwise, you’re exposing yourself and the rest of the board to liability.

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