CFO of the nonprofit association ARCH, her husband faces fraud, charges of theftNews
A former finance director of a regional coalition for the homeless and her husband were accused this week of stealing nearly $ 120,000 from the non-profit agency, according to the state comptroller’s office .
Julie Beale has been indicted by a Washington County grand jury on one count of theft over $ 60,000, conspiracy to commit theft over $ 60,000 and money laundering.
Julie Beale worked for the Appalachian Regional Coalition on Homelessness, or ARCH, an agency that provides support to homeless citizens of Northeast Tennessee.
Her husband, Sam Beale – who occasionally did maintenance work for ARCH – has been charged with one count of theft over $ 60,000, conspiracy to commit theft over $ 60,000 $, a count of financial exploitation of an elderly or vulnerable person and a count of theft. over $ 2,500.
State Comptroller investigators working with the Office of the Inspector General of the US Department of Housing and Urban Development alleged that Julie Beale had embezzled at least $ 119,582.
“This case underscores the importance of not giving sole control of financial operations to one person,” said Controller Jason Mumpower. “The segregation of key financial tasks and increased oversight help reduce the risk of fraud going undetected. “
Julie Beal was accused of embezzling association funds between November 2013 and March 2018.
The Office of the Comptroller alleged that Julie Beale and Sam Beale embezzled $ 75,630.06 by making 150 ARCH payments to Sam Beale for work he did not perform. Sam Beale worked as ARCH’s intermittent maintenance provider during his wife’s tenure at ARCH, and also secured two larger construction projects to complete for ARCH in 2016 and 2017, according to the investigation report. .
The Office of the Comptroller also alleged that:
- Julie Beale made fraudulent ARCH payments totaling $ 32,937.43;
- Julie Beale made fraudulent ARCH payments to another family member totaling $ 5,081.69;
- Julie Beale used ARCH’s money to pay rent for her personal residence totaling $ 3,375;
- Julie Beale used the ARCH debit card to make a total of $ 2,183.47 in personal and unauthorized charges; and
- Julie Beale issued a fraudulent ARCH check to pay a personal debt of $ 375.
Investigators reported that they identified numerous instances where Beale covered up his scheme by stamping false signatures on checks, making false entries in ARCH’s accounting records and creating false invoices.
Julie Beale resigned from her position at ARCH on March 2, 2018.
The comptroller’s office said Julie Beale signed the name of ARCH’s executive director without authorization on at least 304 checks to facilitate her fraudulent payments to herself and her family members.
She also allegedly signed on behalf of the executive director without authorization on at least 23 occasions to transfer funds between ARCH’s bank accounts, according to the investigation report, “to effectively cover up the decrease in bank account balances resulting from her embezzlement. of funds “.
Investigators said she also fabricated at least three bills totaling $ 893.78 to cover up checks she wrote to herself and her husband. The controller’s staff performed a forensic examination of the ARCH computers assigned to Julie Beale and located the accounting software used to create the invoices, as well as the three invoices created.
ARCH’s accounting records showed that payments for these invoices had been made to Cartridge World, a legitimate ARCH supplier; however, ARCH’s bank records revealed that the three checks were in fact paid to Julie Beale and Sam Beale, according to the investigation report.
The report said the checks included forged signatures and were deposited into Beales’ joint checking account.
To view the investigation report, go to: comptroller.tn.gov/office-functions/investigations/find.html, or use the shortcut bit.ly/2USl9lQ.