The Center for Ethics, Governance, & Accountability
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The Center for Ethics, Governance, & Accountability
What a Scandal!
posted by Sam Stephens on Tuesday, February 19, 2008 - 05:40 AM
If any of you were watching CBS Evening News last night, you probably remember the story about the attorneys who kept Fen Phen settlement money from their clients
, formed a non-profit to pay themselves -- and the Judge -- salaries for many years, and even purchased a professional, and well known, race horse. Unbelievable! You can read more about it yourself here: http://www.cbsnews.com/stories/2008/02/18/eveningnews/main3842859.shtml?source=RSSattr=HOME_3842859
This is one of the only examples in recent memory that involves all three sectors -- public, private, and non-profit. And, unfortunately, the non-profit sector was abused terribly so that a few individuals could pay themselves money that was not theirs.
What the news story did not mention was the outcome of the non-profit organization, and the harm it did to the non-profit sector as a whole. Scandals like these lead to increased scrutiny and stricter regulations for all non-profits. Here at The Center, we strongly believe that non-profits have incredible potential to bring about positive, powerful social changes. We work hard to help non-profits that are committed to excellence achieve and demonstrate that commitment, so they can distinguish themselves from scandals like this one and show the public that so many non-profits are focused on important and very respectable causes.
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This is probably the most outrageous incident I have ever heard about. It seems to touch on every sector: public (courts), private (lawyers), and even the nonprofit that was used to flow the money. Incredible! It will be interesting to follow this story as it continues to unfold. Thank you for sharing this, Sam.