Former Goodwill CEO arrested for allegedly embezzling $1M+ from nonprofit

Former Goodwill CEO Arrested for Embezzling Over $1 Million from Nonprofit

In a shocking turn of​ events, Richard Alan Abrusci, ⁤a former regional CEO ‌of Goodwill,‌ has been apprehended and charged ‍with multiple counts ‍of fraud and theft from the nonprofit organization. The U.S. Attorney’s Office for the Eastern District of California​ released a statement detailing the allegations against Abrusci, including nine counts of‌ wire fraud, one ‍count ⁤of aggravated identity theft,⁣ and three ‍counts of ​monetary transactions with‍ proceeds‌ of specified unlawful activity.

The investigation revealed ⁤that Abrusci managed to ⁢divert a staggering $1.4 million by ⁢funneling funds into a fictitious subsidiary ​under his control. The release explained that Abrusci ‍orchestrated the fraudulent payments by utilizing false documents such as invoices and purchase orders, deceiving the⁣ organization and its subsidiary.

Abrusci’s illicit activities spanned from 2016‍ to 2021, during which he held various positions within the nonprofit, ultimately rising ‌to the role of ⁢president and CEO. The nonprofit in question was identified as Goodwill Sacramento ‌Valley and Northern Nevada,​ as reported by KCRA-TV.

One particularly audacious act involved Abrusci forging ⁣a letter from an attorney representing the organization‍ to convince the CFO ‍to authorize ⁤a payment of $55,000​ to the fictitious subsidiary.⁤ The funds were purportedly for information-technology⁤ services, lawsuit settlement assistance, and support for ​call centers during the COVID-19 pandemic. However, ⁤it was later discovered ⁣that none of these services were ever provided by the subsidiary.

The embezzlement scheme was uncovered during internal audits conducted by the organization, prompting​ them to alert law enforcement. ⁣Goodwill spokesman Sam ⁢Singer expressed deep disappointment, stating, “Goodwill itself as an organization is based upon⁤ good will, and this was a real breaking of the ⁣good will by‌ this CEO.”

Abrusci​ appeared in court and pleaded⁤ not guilty to all charges. If convicted, he could face up to 32 years in prison and substantial fines. A status conference is scheduled for February to further​ address ​the case.

Source: Ex-Goodwill CEO Arrested for Allegedly ‌Stealing Over $1 Million from Nonprofit – The Western Journal

What charges is Richard Alan Abrusci facing and what are the potential ‍penalties if convicted?

Reporting. If convicted, Abrusci could face severe penalties, including significant fines and a lengthy prison sentence.

Goodwill, a well-known nonprofit organization that aims ⁤to provide job training ⁣and employment opportunities ‍for individuals‍ with barriers to ⁣employment, ‌was founded in 1902. Over the years, it‍ has established itself as a trusted and respected organization, ⁢with​ branches all across the United States.

Richard Alan Abrusci, who served as the regional CEO of Goodwill, was entrusted with the responsibility of overseeing the organization’s operations, ensuring‌ its mission and values were upheld. However,​ it appears that he used his position of power ⁢for personal gain, engaging in fraudulent activities to embezzle over $1 million from the ⁢nonprofit.

The U.S. Attorney’s⁤ Office alleges ​that Abrusci engaged in‍ a scheme that​ involved redirecting funds meant for the organization into his personal accounts. ⁣Wire ⁣fraud,‍ one of the charges against him, refers to the use of electronic communications to defraud others. In this case, it seems that Abrusci manipulated financial transactions, diverting money intended for Goodwill to his own benefit.

Additionally, ​Abrusci is charged with aggravated identity theft, a serious offense that involves the unlawful use of another person’s identity to commit a ​crime. It ‍is ‌truly disheartening to think that someone trusted with leading⁣ such a noble organization could be involved⁤ in such nefarious activities.

The embezzlement scandal came to light when irregularities were discovered​ during an internal audit conducted by Goodwill. The organization immediately reported its findings to the appropriate‌ authorities, who swiftly launched ⁤an investigation. ‍The evidence gathered during the investigation led to the arrest and subsequent charges against Abrusci.

Such incidents of embezzlement not only‍ tarnish the reputation of the organization involved but‍ also undermine public trust in nonprofits as a whole. Goodwill is a highly ⁣regarded⁤ institution that has positively impacted countless individuals and​ communities. The alleged actions⁢ of Abrusci are in direct‍ contradiction ‌to the values and principles ​that Goodwill stands for.

It‍ is crucial for ⁢nonprofit organizations to have robust internal controls and oversight mechanisms​ in ⁢place to prevent and detect fraud. Regular⁢ audits and thorough financial reviews are essential to identifying any irregularities and holding individuals ​accountable for their actions.

In this case, it is commendable that Goodwill acted promptly ⁣and cooperated fully with the authorities.​ Their swift response⁤ demonstrates their commitment to transparency and integrity. The nonprofit also ensures that the beneficiaries it serves are not adversely affected by Abram’s alleged actions.

This incident serves as ⁤a reminder ‍that no ⁤organization is immune⁣ to the threat of fraud and‌ corruption, no matter how reputable or well-established it may be. It emphasizes the⁣ importance of leadership accountability and the need to maintain a strong ethical culture within nonprofit organizations.

As the legal proceedings against Richard Alan ⁢Abrusci unfold, it is crucial ⁤to remember the positive impact that Goodwill has made ‌over the years. The actions of one individual should ⁢not‍ overshadow the collective ⁢efforts of the organization’s dedicated staff and volunteers.

Nonetheless, this ​embezzlement scandal should serve as a ‌wake-up call for all nonprofit organizations to re-evaluate their internal controls and risk management practices. By learning from incidents such​ as this, organizations can ‍take proactive measures to protect themselves from similar fraudulent activities‌ in the future.

The arrest of Richard Alan Abrusci highlights the importance of ⁢trust and ‍accountability in the nonprofit​ sector. It is imperative that organizations remain vigilant and committed to their mission, ensuring ⁤that funds intended for their beneficiaries are used for their intended purpose.

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