BRUNSWICK, Maine — The indictment earlier this month of a Lewiston man accused of embezzling $62,000 from the Knights of Pythias in Brunswick has left the group — founded on the principles of friendship, brotherhood and charity — reeling with betrayal. With just $6,200 in the bank, group members wonder if this year might be their last.
Michael Peterson, 27, of Lewiston was indicted on Aug. 10 by a Cumberland County grand jury on one count of Class C theft after allegedly stealing the funds between June 2009 and August 2011. He had been keeping the books for the fraternal organization.
Established in 1864, the Knights of Pythias was founded on the principles of friendship, brotherhood and charity, secretary Michael Sanborn said Monday from the lodge on Turner Street.
The Brunswick Lodge has 24 members. Dues are $18 a year. They meet every Monday evening to see friends and often sponsor fundraisers such as the Christmastime auction which this year benefited the Ronald McDonald House.
“This type of an organization — everybody you meet is friends with you,” Sanborn said.
So the members feel particularly betrayed that Peterson — who they trusted with their money and friendship — allegedly betrayed both and may cost them their lodge.
As members aged — Gerald Teatreault is 96 — another lodge member recommended Peterson as secretary and treasurer because “it would be nice to have a nice young guy to keep the lodge going,” Sanborn said.
Fred Goldrup, 78, a fourth-generation Knight who serves as prelate of the lodge, said Monday that had the members known Peterson was a registered sex offender, they never would have allowed him to join.
On Jan. 16, the Knights of Pythias reported to Brunswick police that they suspected that Peterson had been embezzling funds, Brunswick police Capt. Mark Waltz said.
Detectives spent several months collecting bank records and reviewing meeting minutes, which Waltz said “should contain authorized expenditures.”
They learned that $62,000 allegedly had been removed without authorization from the accounts.
Police interviewed Peterson in July and discovered he was on probation after having pleaded guilty in Portland Superior Court in January 2007 to gross sexual assault, Waltz said.
He was summoned in July by his probation officer for a probation violation and a judge ordered him held without bail “based on the severity of the theft,” Waltz said.
In 2005, the Knights sold their former lodge, the brick building at the corner of Maine and Pleasant streets that still bears the name of the organization, for $500,000, Sampson said. They purchased the Turner Street building for $250,000 and after renovations had “a little over $300,000” in the bank.
While Peterson was indicted in connection with the theft of $62,000, according to Waltz, Sanborn thinks he took more, “but I can’t prove it.”
According to Sanborn, Peterson moved the funds among accounts and CDs in three banks.
“He was drawing out cash sometimes three or four times a day,” Sanborn said. “He took the books and bank statements home with him. We weren’t privy to them.”
Then Peterson stopped coming to meetings, Sanborn said, “and wouldn’t answer our calls.”
When Sanborn took over as secretary, he received a letter from the bank notifying him of an overdraft.
“I said, ‘We can’t be. We’ve got over $100,000,’” he said. But the bank official informed him the account was $96 overdrawn.
Today, the Knights account contains $6,200 — just $700 more than a year’s worth of operating expenses.
Waltz said he hopes other nonprofit organizations take note of the loss suffered by the Knights of Pythias.
“We are more frequently than we would like to seeing cases where nonprofit organizations have their funds embezzled,” Waltz said. “We think the problem might be that everyone assumes people engaging in an organization to serve the public good [can be trusted], and they trust each other, but not everyone is trustworthy.”
Peterson was given “easy access to money,” Waltz said, and noted, “I think it’s important that any business do background checks on anyone handling money. There [should be] a checks and balances system so no one person can take money without another knowing about it.”
While Sanborn said “there was supposed to be checks and balances right along,” the only way they could have insisted Peterson return the financial documents would have been for Commander Daryl Pratt to have called for a vote of lodge members to demand Peterson return them, and Pratt was ill.
Pratt’s voice mailbox was full on Monday.
At this point, the Knights’ only hope, Sanborn said, is to rent an unfinished space at the end of the building.
“Then again, I don’t know if we have enough money to fix it up,” Sanborn said. “Either that, or we’re going to close the doors.”
What kind of a low life would steal from such an organization? Too many embezzlers in Maine get, at worst, a slap on the wrist. The Romans would feed thieves to wild beasts. Don’t suppose we can do that anymore.
For some the access to the $ is too tempting. It starts out as ‘borrowing’ until a check comes in so they can repay it.. then it slowly just becomes a habit. We had our ex treasurer steal from a fishing club. The answer is to have a coupler of different club officers with access to the account and timely, accurate reporting of debits & deposits.
The police said they get this all the time from many groups..some even charitable organizations.
What can happen, once an embezzler is tried and convicted, is that once he is in the custody of the Dept. of Corrections, any earnings he gets while incarcerated can be reduced by a set amount, to be paid toward restitution the inmate owes. This includes money sent to canteen for incidentals. Inmates complain about this, but I think it is perfectly fair and reasonable that they should have to pay back what they stole.
Unfortunately, given the age of the club members, they won’t live long enough to receive any repayment from this low life scum. Perhaps the community can hold a fundraiser to help replace some of the stolen money.
This speaks volumes for the necessity of having the treasurer and anyone else who has access to the financial assets of any organization to be covered by a fidelity bond or be insured against theft for the full amount of all financial assets. For the small amount that it costs, it is well worth the security it would provide. Also, requiring more than one signature for any financial transaction would have also headed this off. So sad to see this happen to too many good organizations.
Very disturbing that this Peterson thief preyed on these trusting gentlemen.
This is more than stealing; it’s elder abuse!
Good point!
When I hire someone one they get a full background check. That includes looking at social media to see what they are up to.
Many of these organizations, such as the Elks for instance, do complete background checks on anyone wishing to become a member and they well should. And also as Cranky said, the members that are selected to oversee any of the financials are bonded.
Looking at social media is a whole other subject which many (myself included) will say, is an invasion of privacy. Do you actually ask to see their FB page, or ask for their passwords?
FB profiles are in the public domain. If they aren’t set to private, what ever is posted the whole world can see. It’s fair game.
I don’t ask for passwords.
I am sorry to hear about this. It appears that the men in the lodge were operating on the assumption that this character had character. I just hope that they are able to bounce back from this, and learn to have more of a checks and balances system so this does not happen again. Unfortunately, some people don’t even know the meaning of the word Integrity, much less have any.
They won’t have to disband. They appear to be between 70 and deceased anyway.
Joking aside, it’s terrible that someone stole from them. They seem like trusting, older gentlemen who never hurt anyone. Taking advantage of the elderly is horrible.
not AT ALL funny
Embezzling from a non profit organization and sexual assault? That could be cumbersome on judgement day.
Usually communities and organizations come together to help out in time of need. This organization seems to have a lot of friends. I’m willing to bet they get offers of help and end up making it through this ordeal. I certainly hope so, as I hope the perp gets what he has coming to him. Wonder what he has for assets…
Embezzlers steal more than your money. They steal your trust.
A lot of these organizations bring members in upon recommendations of fellow members. It’s a shame when they turn out not to be the best of individuals. I learned that lesson the hard way also.
Only 24 members isn’t a lot for a lodge of that age or size. Maybe they should up their membership, get some members in with skills to donate towards revitalizing the lodge.
$62,000 ain’t nothing when it come to embezzling in Maine.
Don’t you remember that 14 years ago the executive director of the Maine Grocers Association walked off with $705,000?
I remember it well because they couldn’t afford to hire quality entertainment for their annual meetings for several years.
And milk from Fort Kent to Kittery went up 2 cents a quart.
The humble Farmer
a simple fix would have been to have 2 people to have to sign the checks.