Embezzlement at a Not-For-Profit: New Day Products and Resources

• In Event: Research in Progress

Abstract

This case details an embezzlement scheme at a not-for-profit. New Day Products and Resources is a community therapy program that operates as a not-for-profit 501(c)(3) company. New Day employs individuals with disabilities who perform a variety of services. In 2011, employees at New Day discovered a long-standing case of embezzlement that had been perpetrated by the recently terminated CEO, Nancy John. Ms. John used a variety of schemes to enrich her personal wealth at the expense of New Day. In the court documents, New Day representatives estimated damages between $175,000 and $600,000. Ultimately, Ms. John was convicted of one charge of felony embezzlement and sentenced to a ten-day prison term, ten years of probation, and was ordered to pay $20,000 in restitution.

Authors

• Stacy Ann Mastrolia, Bucknell University

• Curtis M Nicholls, Bucknell University