THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, July 29, 1995 TAG: 9507290276
SECTION: LOCAL PAGE: B3 EDITION: NORTH CAROLINA
SOURCE: BY PERRY PARKS, STAFF WRITER
DATELINE: ELIZABETH CITY LENGTH: Medium: 66 lines
The man charged with embezzling more than $100,000 from the Albemarle Area United Way admits wrongdoing in a civil lawsuit that has been settled, court records show.
James Graham Foreman, the former part-time executive director of the Albemarle Area United Way, agreed to pay $150,000 to his former employer, according to records.
Foreman still faces 23 criminal counts each of embezzlement and malfeasance by a corporate agent on charges that he used about $102,000 in agency funds for personal expenses over two years.
``It is admitted that between March 1993 and February 1995 the defendant diverted contribution funds from third-party contributors for his personal use and benefit,'' Foreman's answer to the civil complaint reads.
``It is further admitted that these diverted contribution funds were to be allocated to various charitable organizations and agencies in the area.''
The loss of money prevented the Albemarle Area United Way from distributing quarterly funds to its 20 member agencies in seven northeastern North Carolina counties in the spring.
Foreman's answer, filed by Elizabeth City attorney John S. Morrison earlier this month, acknowledges that Foreman set up a bank account at Branch Banking and Trust Co., but it denies that he did it secretly.
The United Way's civil complaint alleged that Foreman had opened the account ``without the consent, knowledge or approval'' of United Way officials.
The answer admits that Foreman used the account to write and sign 118 checks payable to cash or to himself totaling $83,622.22, and 17 checks to U.S. Cellular totaling $12,599.08. Foreman either denies writing or denies knowledge of other specific checks he was alleged to have written.
Foreman also acknowledges in his answer to the civil complaint that he concealed his misappropriations by falsifying documents prepared by the United Way's accountant.
The discovery of a second version of the United Way's annual audit this winter prompted Foreman's suspension Feb. 3 and began a criminal investigation that resulted in indictments May 8.
``It is admitted that the defendant acted willfully, wrongfully and fraudulently in diverting contributions made to his employer to himself for his personal benefit,'' Foreman's answer says.
``It is further admitted that he breached his employment obligations to the plaintiff.''
As partial repayment, Foreman's settlement offer turns over his share of a house on Rivershore Road, which was willed to Foreman and his sister when their mother died this winter. The house is up for sale.
Foreman resigned Feb. 6 after being suspended without pay when United Way officials found the second audit report. He was released on $46,000 bond after surrendering to Elizabeth City Police May 15.
Assistant District Attorney Mike Johnson said Friday that Foreman's admissions in the civil case could possibly be used as evidence if his criminal case goes to trial.
Foreman has yet to be arraigned, but, Johnson said, the case likely will come up in August.
KEYWORDS: CIVIL LAWSUIT UNITED WAY EMBEZZLEMENT THEFT by CNB