Monday, October 31, 2016

New York provides whistleblower protection to fired nonprofit employees, but does not investigate nonprofits for misuse of funds - unless the nonprofit under investigation is linked to a presidential candidate of the "wrong" party

An employee of a private non-profit school reported the school's principal for using the school's fund for a personal vacation with some alumnis to Cuba - where, as the lawsuit alleged,

"[t]wo seniors from scandal-scarred Poly Prep shared a hooker, booze and cigars on a school-financed “rite of passage” Cuban getaway hosted by a top school official, a stunning new lawsuit charges", and where, reportedly

the son of the school principal and a son of a "famous musician" participated in the trip.

After blowing the whistle on that misuse of funds, the employee was allegedly harassed by the director of the school, fired - and sued for non-compliance with the new Non-Profit Revitalization Act of 2013.

The lawsuit alleges, among other things, that hush money were paid out of the non-profit funds to silence an alumni who was on the trip and witnessed the alleged debauchery of the two students.

The Kings County Supreme Court has recently found for the employee, allowing her whistleblower portion of the lawsuit to continue.

Non-profits handle not only direct donations from individuals, but also act as recipients and "pass-through" agencies for state and federal grants, and it is extremely important for taxpayers to know whether their money is pilfered by high-ranking officers of such non-profits.

This decision, by New York judge Loren Bailey-Schiffman,



is a true step, although a small and incomplete step (the judge dismissed the breach of contract and defamation claims of the fired employee) forward to fight waste of taxpayer money in the State of New York.

Yet, the judge demonstrated courage when, in our day and age, she at least ruled for the employee on the whistleblower issue and allowed this lawsuit to continue - even though it may have involved a child of a celebrity.

Let's see whether this decision will be overruled on appeal.

And, my question is - with the news of reported misuse of nonprofit funds, where is our fearless New York State Attorney General and why do we not hear about criminal charges filed against the school's principal and those who authorized the payout of the trip money and the "silence money"?

Or, is New York nonprofit law good enough for the New York State Attorney General to use only to attack the Republican presidential candidate in the crucial months before the election, for the NYS AG's own personal political gain - but NYS AG is too timid to touch a case that may involve (as it reportedly does) a son of a rock star?





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