The former treasurer of the Sebring, Florida, EAA chapter has been charged with stealing $65,000 from the chapter’s bank accounts and trying to get another $60,000. According to AOPA, Thomas Justin Smith, 32, was arrested July 31 for systematically removing funds from five separate accounts held by Heartland EAA Chapter 1240 and trying to cover his tracks while doing so. Smith has a maintenance business on the field and some of the money allegedly moved through his shop’s accounts. He was arrested shortly after another member of the chapter executive checked the accounts, expecting to see tens of thousands of dollars and discovering a negative $250 balance. Smith has pleaded not guilty to grand theft, obtaining property worth $50,000 or more, and using a communication device to facilitate a felony. He has been released on a $5,000 bond and is due back in court today (Aug. 31).
In a statement quoted by AOPA, Chapter President Gregory Griffin said the chapter is now broke but members and local businesses are rallying to get it back on its feet financially to keep its numerous programs operating. “Our greatest assets have always been the people behind these programs—our volunteers, pilots, educators, donors, aviation businesses, community partners, and the students themselves,” said Heartland EAA Chapter 1240 President Gregory W. Griffin. “Their response over the past several weeks has reinforced that in a way I will never forget.” The chapter is taking donations to rebuild the coffers.
All the more reason to ensure that TWO signatures are required on all checks and financial disbursements.
At our N.G.O. two signatures are required for every cheque written. Not a guarantee, but a good safeguard. Yes, don’t steal…the government hates competition!
A buddy of mine is a forensic auditor. The horror stories he tells will just blow your mind. Everyone thinks they will get away with it and everyone gets caught. Unless they are in government, but that is another story altogether.
Wow! I used to run one of the largest EAA Chapters, 1114, Cox Field, Apex, NC. We watched the money closely but never had more than a few thousand in cash at any given time. I am impressed that this chapter was able to accumulate that level of funds.
Me too, I was very surprised to hear that a local chapter had so much money on hand.
I’ve been treasurer of two EAA chapters over the years and never had much more than $6500 in the bank. Must have been a really rich chapter!
So much money and such little oversight from the board. Unless this fraud all occurred in between board meetings, then the entire executive board has culpability here.