BANGOR, Maine — A former employee of the charitable arm of Eastern Maine Healthcare Systems has been accused of taking roughly $55,000 from the nonprofit.
Healthcare Charities discovered the missing funds in early March through a regular accounting review, according to President and CEO Michael Crowley. The organization is investigating, with an outside auditor, to determine the full scope of the losses, but most of the donations involved were likely smaller cash gifts misappropriated over the past several months, he said.
The employee, who has since left the organization, worked in a clerical position in the charities’ Bangor office, Crowley said. He declined to specify the worker’s length of employment.
Crowley said he couldn’t speculate about the former employee’s motives, other than to say the money was taken for personal gain. The person is believed to have acted alone.
“An organization like ours is built on trust and confidence and we take every dollar quite seriously,” Crowley said.
Eastern Maine Healthcare Charities raises $10 million to $15 million each year to benefit the health organizations that fall under the EMHS umbrella, including Eastern Maine Medical Center.
So far in the investigation, it appears the affected monies were intended for wellness, patient care and patient education programs, Crowley said.
The nonprofit is working with the Bangor Police Department to investigate the alleged misuse of funds, he said. No charges have been filed against the former employee.
Healthcare Charities sent letters this week to all of its current donors to alert them to the losses.
“As painful as this might be, we feel it’s important we notify all of our stakeholders, as well as do all we can to recover the funds,” Crowley said.
The nonprofit’s board was notified Monday, according to board vice president Lynne Spooner.
The letter sent to donors states that some personal checks may also be missing in addition to the cash gifts.
Healthcare Charities has instituted new internal controls since the discovery of the missing funds, including requiring that two staffers be involved in receiving and processing donations and making deposits, Crowley said.
The nonprofit will also run criminal background checks on all new employees, he said. That requirement was was not in place when the former worker accused of taking the funds was hired, Crowley said.
Healthcare Charities employs 21 people throughout eastern and northern Maine.
The organization’s board is confident in the new protocols and pleased with the executive team’s swift and decisive action upon discovering the missing funds, according to Spooner, a senior vice president at People’s United Bank.
“We’re confident that the added checks and controls Healthcare Charities has put into place will prevent this from happening again,” she said.
Healthcare Charities has set up a hot line for concerned donors. The number is 866-348-4078. Donors who wrote checks to the nonprofit that have not been deposited in a reasonable period of time are urged to call the hot line.
Anyone with information about the missing funds is asked to call Bangor Police Detective Tim Cotton at 947-7382. To remain anonymous, call and press 6 to leave a message on the tip line.
We haven’t had a good embezzler story for a while. A nice break from the bath salt stories.
Well when is the last bath salts story
Actually, the money was used to buy bath salts. :-)
Trust me I’m a DOCTOR
TIMES ARE TOUGH ALL OVER I GUESS !
Not surprising considering the accounting practices that are implemented throughout the Healthcare system.
Perhaps the 25 bed hosptial in Skowhegan could help replenish the fund, they seem to have a lot of extra money to spend.
Not surprising, considering the accounting practices withing the Healthcare System.
“No charges have been filed against the former employee.”
I hope they mean:
No charges have been filed against the former employee, yet.
I’m not surprised, but saddened none the less. Times are very tough, but stealing from those less fortunate than even you are is not okay. I see why this person is not employed for EMH Charities anymore.
When, will we finally come around and issue the max for these crimes. So far what little slap on the hands they get does nothing to prevent the next person from doing it yet once again. Like in Newburgh, a theft of 1/2 million dollars over 10 years and they get 18 months. Now, that’s a great deal. The lack of Justice pushes people to continue to steal or even steal for the first time. The crime is well worth the time.
WHY WHY WHY have no charges brought against this person??? This sure won’t help you fund raising cause.
No charges and no names . Wonder how that is going to help when they ask the public for help. We need to recover these funds and try to make sure it dose not happen again. If they let this slide how many people will refuse to donate? I is not saying EMHS is a business or the highest integrity. But to let stealing from the less fortunate go unpunished would be a worse crime than the theft in my book .
i give hefty donations to this organization, considering not too now.
Please DK, It was someone elses donations that were stolen..they keep it seperate in jars with the donors names on them.
What the heck you talking about
I think that was meant to be a joke, dkenzie……not funny when it’s someone’s donations going to ??? where????
Thank you i didnt find it funny that he or she said it. Just for that i will cut the donations to them off for there actions.
I’m confused by your post dkenzie, why would you punish the victim in this crime?
I wont but im mad that commentor found it funny that they have jars. Its rude i still will send donations to them via company
Do you think its funny
David, apparently you were right since the organization is asking donors to call in with questions about their donations. How did you know they kept all the money separate? Are you an insider?
I bet he or she is the culprit
I hope you don’t mean me, dkenzie. I despise thievery almost as much as I despise lying. Criminality isn’t funny business to me at all.
No not you, it was davidsgolaith
Let me take a shot at this one, all speculation of course.
I am thinking the large donors, the ones that wrote the big checks were not the ones that had their donations picked off. I am guessing it was from the smaller donors, the cash donors. Perhaps the one taking the cash at specific fundraisers that had their hand in the cookie jar. I did make a donation to this organization so I will call the number and post what they tell me.
I dont think they are gonna care about a change donation at a store container. Because i doubt very highly with your attitude that you made more than a fifty cent donation
I would think that they would immediatly charge him/her for this crime! why wait?
Arrest them like a common criminal..
Healthcare Charities is fully cooperating with the ongoing
criminal investigation, and it is expected that criminal charges are likely to
be filed when the investigation is completed. We thank all our donors and the
community for their support. The charitable mission of EMHS is vitally
important to the patients of our region, and our work will go forward.
Liz Martin
Director of Philanthropy Communications
Thank you, Liz. We wish you well.
What do you mean we? Is that the royal We?
I’m sorry. You are correct. My wife was standing here talking to me and I kind of just included her. “I wish you well.”
Just some friendly advice. The BDN web site has millions of readers. 99.99999999% do not post on this board. The ones that do, 99.99999999999999999% do not reveal their identity which allows them to say anything, even if just playing devils advocate, on any subject, anytime, without any recourse what-so-ever. I would not be posting anything on this blog for anyone to read representing any company if I were you at anytime. There is absolutely no benefit and the reward vs. the risk is so insignificant anyone of your superiors would tell you the same, including your lawyer.
Like I said, friendly advice, very friendly, super duper friendly. Get it?
There is no harm in what she said. Most of the time the company in question says nothing and everyone’s critical. You spent a whole lot of time on your “friendly” advice. Seriously.
Unless it is in print, any internet record or comment can be purged. Any anonymous poster can be tracked down should there be a need to do so. Anonymous postings and tips are important. There has always been value in “undisclosed sources.”
Reporting is notorious for writing that misrepresents statements and facts. While it is prudent, for everyone, not to post without due consideration, and, without substance, a statement like the one made only states what the article omitted, and nothing more.
On the other hand, your warning, your strong caveat, to the organization gives the impression that you are in a profession, no – that you are directly involved – with one or more of the organizations as counsel, or might be at some point, leading the reader to suspect that there are, in fact, serious questions to be raised regarding all associated organizations’ financial practices, when, so far, nothing of the sort has been put forth in evidence.
The result is that now, with questions put directly to the organizations(s), if there is no response, that most definitely could be perceived as highly suspect; and suggests that your caveat carried great weight due to inside knowledge of wrongdoing, or your own suspicions.
A random thought: does this perhaps have anything to do with Carlson?
Why no name or pic?
Watch where you put your money…..
Cross the street to Hollywood Slots and start looking.
Be Careful my comment got removed when i mentioned this name. Alot of happy flaggers on here like that place and just remember no crime has ever happened since they came to Bangor
I have very little to give, and when I give, it is to my local non-profits. Library, school, food bank. Useful local charities that give DIRECTLY back to my community. Outside of that I feel as though I am paying someones outragous salary: or, in this case, some thief….
Unfortunately, any charity or business, regardless of size can have dishonest employees who steal- whether it’s money or an actual product.
If I were Crowley, I might ask to have the layout of this article changed a little-at first glance it appears that he is the low life bum who would steal money donated to a charity. From what I understand sometimes charges are slow because the legal system does not give the District Attorney’s office a second chance. Make sure all the ducks are in a row before you charge and arrest. I hope this is the case, because I have donated money to this organization and I would like to know who this loser is.
I don’t find Eastern Maine Healthcare Systems on Charity Navigator. That probably doesn’t mean much. There are listings on GuideStar for Eastern Maine Healthcare Systems. http://www2.guidestar.org – enter the name for the search. But not with the name Healthcare Charities.
There’s Eastern Maine Healthcare Systems, there is the Eastern Maine Healthcare Charities. (No more acronyms!) These two are related, yet separate?
Well, going on this merry path anyway, the Annual Report for Healthcare Charities dot org, is a a different name than “Eastern Maine Healthcare Systems,” http://healthcarecharities.org/about-us.aspx?id=30658 wait — so the employee worked for Healthcare Charities dot org, and not for Eastern Maine Healthcare Systems.
On their Annual Report for Funding Year 2011 page, which is then linked to Eastern Maine Health Services, on page 16/17, there are some niggling figures, and yet another combinations of words for the name —
Bottom right http://www.flipseekpubs.com/publication/?i=103778
“EMHS Benefit to the Communities We Serve
Unpaid cost of public prgrams
Medicare $41,621,101
Medicaid $42,664,900”
Are they saying that the charity by whatever name pays out this amount? That can’t be right, but given the section of the report, that’s what it says. Are they saying that they will never receive the State or Federal funds that are due to them?
Then, there is:
“Uncovered interest cost of funds used to subsidize state Maine/Medicaid underpayments of
73 million” — $4,571,458.
There is also a line for Charity Care at $220,455.
On pages 6-7 in the Annual Report: Affiliated Healthcare Systems, (AHS), “provided more than $244,000 in donations to Healthcare Charities in support of EMHS hospitals and care providers, as well as more than $18,000 in charitable contributions and support to non-EMHS organizations.” They clearly state that they are a taxable business, that does business with EMHS.
The bottom line on the text block says: “$3,325,247 is the total amount of donor funds used for community benefit through Healthcare Charities of EMHS.” That’s a different name, and the total given out is over 3 million, but the EMHS System Benefit at the top gives the figure of $126,889,957.
I am at a loss to explain just what those various acrononyms and organizations have to do with each other and why the figures look so strange. The article says the charity raises $10 to $15 million a year.
Input, please? You will need to get past the cancer stories – best to go to page 14/15 to start. I can’t begin to understand the remaining pages and what this all boils down to in terms of funds raised, monies expended, CEO position salaries, things for which there is reimbursement – eventually…
Update: It looks like Healthcare Charities is a private fund-raising/management business. Here is an article from February of 2011 from the website of WealthEngine, a business that appears to be another contractor for Healthcare Charities: http://www.wealthengine.com/nonprofit/community/best-practices-action/healthcare-charities
I note that they: “Use data mining to compare major donor files with patient records to target grateful patients.” And, “Benefits Realized – The team has found the wealth data invaluable in analyzing past donor attributes and compiling targets for direct-mailings. They look at charitable giving history, stock holdings and pensions, real estate holdings, hard assets, and propensity to give scores and gift capacity ranges.” HIPPA laws do not apply? Finance and insurance must be part of the protections so there is no patient discrimination.
No conclusions can be drawn from any of this, at this point, but, at minimum, it would seem that Healthcare Charities should clearly define itself as a for-profit business or a 501(c)3, or other nonprofit designation, and should not be so interwoven with EMHS’ publicity and financial statements that it is, at first glance, impossible to see that they are a separate entity.
I hope that the Director of Philanthropy Communications will address all of the above, as well as the spokespeople for the member hospitals and organizations.
I think you will find that the non profit EMHS is the parent organization of many non profit hospitals/companies, including healthcare charities, and that AHS is a a for profit company associated with the company.
I would say that Healthcare Charities is a private business that EMHS contracts with for fund raising and other services, and that the individual EMHS bits also do their own fund raising. AHS is straightforward about its relationship, and for-profit status.
The light of a new day has not made the entire picture appear more palatable. I hope there is other evaluative, evidential assessment made.
If I were Michael Crowley I’d be a *little* annoyed that my picture was below that headline.
If I was Mike Crowley I would be a little annoyed that one of my employees that I trusted and supervised stole 55K while getting paid to make sure the operation runs smoothly. Oh, and a nice 6 figure salary to boot. I am glad I am not Mike.
Yep. When I saw it, I thought he was the bad guy.
Crowley is responsible for this failure, and should be sent packing. There is absolutely no excuse for this, none whatsoever.
And what leap of super intelligence has lead you to this conclusion. Mike Crowley is one of the finest and most honest men in the entire state of Maine. You on the other hand are a clueless and rude malcontent looking to make an unfounded and absurd accusation.
Crowley is responsible for seeing that controls are in place to prevent such a crime. This is a horrible crime, especially with the funds from people donating to this facility. He obviously failed to see that the controls were in place, or to test them once in a while to verify that fact. Crowley; Guilty!
I guess we have to another BS “jeans day” at Acadia Hospital Hospital to make up for the lost. Employees are charged $2.00 or a donation (more) to be able to wear jeans. Somehow , the funds never get to the “identified cause.” Employees are scared for their jobs to ask where the monies went.
In addition, despite the so called budget cuts at the Acadia Hospital, they recently hired a “Director of Development” A position not involved in direct patient care. Do we really need that? What does a Director of Development do?
Oversees development is my guess.
The Director of Development would locate, write, and secure grants and sponsorships, or they should. The question I would ask is whether Crowley’s organization, whatever it’s name, is doing that for the hospitals and other institutions who are already “members.”
You, and others, should most definitely be able to get an answer to your question. There should be a clear answer. If there is not, then there may be job protection through whislteblower laws.
Don’t wear jeans.
Exactly. I have never worn jeans or “dressed down” on days like that. Same for the holidays when people get all christmassy or halloweeny. I just wear the same uniforms I always do. It’s a personal choice for cryin’ out loud.
Are you forced to wear jeans? Do you have to participate? Don’t pay the two bucks and wear something else. Be an outlier. Acadia is becoming the definition of whiners. PS: a development director raises money for programs – maybe that two dollar jeans day, in addition to being an attempt at creating some fun, benefits progams? Give me that option – I’d pay $2 to wear jeans everyday!
That person probably thinks they are forced. I personally can’t stand those casual days. Especially the Jeans thing.
Who is the woman that stole the cash? “enquiring minds want to know”
I didn’t see in the article that the gender of the thief was stated.
Me either but Bangor is a small town.
Its a ” white collar crime”.
No big deal.
Steal 10’s of thousands $$, slap on wrist. maybe a dirty look and
SHAZZAM , you are free.
Why weren’t the checks and controls put in place BEFORE this happened? Seems to me people should be looking at the accounting supervisors, chief financial officer and Michael Crowley for not doing their job!
First of all i find you very ignorant to even make a comment that way. Second of all my keyboard stinks in the office and third of all i make a decent amount of money since i own apartments and a business, spelling and language has nothing to do with. Enjoy your day and thanks for you comment NOT
I will make you a deal you go in there and ask people you dont know where they are from, i did it when they opened in the new place, the first 40 i talked to were transfers from other companies that own Hollywood casino
Well i hope you do not have any either and thank you very much for the nasty comment but i have a very beautiful eight year old daughter, enjoy your day Mr Bushfan , go drink a few more Beers
Bonehead? Are you really an engineer? I was replying to the We wish you well. What organization does unconditioner speak for? Critical thinking much this morning?
I did not flag your post, Engineer. I believe in 1st amendment like true-blue Americans do.
Donations from “grateful patients.” “Grateful patients” is a standard term utilized in the fund-raising game. It makes sense that some people will wish to give a donation to a medical institution that served their needs.
However, given that two unrelated people in the same household cannot access information about someone they may be caring for, according to HIPPA requirements, one must look at the irony, and wrongdoing, of sharing patient information with fund raising business and businesses. Authorizations to sign off on all rights may well be presented to patients at some point, but what regular person, especially seeking health care, understands the depth and breadth of how information will be used, and will refuse to grant permission to share information?
Here are two links to different points of view on the subject of medical databases utilized for fund raising and HIPPA: (I post them in good faith that providing links does not constitute copyright infringement).
https://www.blackbaud.com/files/resources/downloads/WhitePaper_EthicalConsiderationsOfProspectResearchinHealthcare.pdf
http://www.ahp.org/advocacy/us/HIPAA/Analysis/Pages/HIPAAFAQs.aspx
(Note that opt-out language, as interpreted here, is not nearly specific enough as to the type of information that can be disclosed. If the opt-out stated, “You relinquish the right to disclosure of your medical condition to any party that could remotely be called deemed “healthcare-related,” that phrase, in itself, being pretty darn broad, how many would agree to it.
Whether or not patient diagnosis is shared with outside fund raising businesses, subcontracting that business, as Healthcare Charities seems to do, is another expense line to them, which would then effect the bottom line value of contributions made with the intention to “do good.”
Even if patients do not care what information is shared, even if nothing about health condition is shared, then making donations that given with specific instructions as to where that money will be spent — “dedicated” donations, as opposed to non-specific giving, makes sense.
Those people who donated to any of the named businesses or institutions may or may not have been able to write them off their own taxes. Many, I’d bet, may not need to do more than fill out a short form, not be amongst those people profiled as having sufficient wealth to justify solicitation.
PS I think the EMHS “grateful patients,” shown on the website, with their heartfelt quotes about their cancer care, shows disregard for these patients in the utilization of their experience for funding purposes. A disgrace.
Institutions need to raise money. How they do it, is another matter.
It’s very misleading to use Crowley’s picture as accompaniment to this story. If you don’t read the story and/or just see the blurb on the homepage, it looks as though he is the one being accused of embezzlement. Perhaps a more generic picture of EMHS would be more appropriate?
It’s misleading to use Crowley’s photo as accompaniment to this story. Without reading the article or in simply seeing the blurb on the homepage, it looks as though he’s being accused on embezzlement. Perhaps a more generic photo of EMHS would be more appropriate?
And so the story dies, as it vanishes from the front page. And no one from the entities involved are heard from again, at least, maybe, until the ‘perpetrator’ is charged. The newest chase is the only chase.
I’ll solve the whole thing: it was Col. Mustard,Colonel Mustard, Professor Plum, Miss Scarlett,
Mr. Green, Mrs. Peacock, and Mrs. White, in all rooms of the mansion.
Good people go bad. In place audit trails are in place to catch the theives, what happen here ?
I liked it when Crowley said, we will do background checks. What is that going to accomplish ? Maybe getting an employee who hasn’t got caught stealing ,yet. These folks that do this usually are not in a position of trust and have no record. We need to up the punishment so it does indeed deter. That is the only way, not prevent some part time pot smoking person or a repeated parking meter offender from gaining meaningful employment. These are the folks you most likely can trust….. Why do CEO’ s believe they think with logic, it does not work when you are out of touch with Main St.