Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, April 4, 1995                   TAG: 9504040100
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-1   EDITION: METRO 
SOURCE: Associated Press
DATELINE: ALEXANDRIA                                LENGTH: Medium

CHARITY LEADER GUILTY

A federal jury deliberated more than seven days before finding Aramony guilty of 25 counts of fraud, conspiracy and money laundering. Aramony showed no emotion as the verdicts were read.

Aramony was charged along with Thomas J. Merlo and Stephen J. Paulachak with siphoning off money that had been donated to the charity by businesses and individuals. Merlo was convicted of 17 counts; Paulachak, of eight.

``This verdict sends the message that society won't tolerate individuals who are charged with protecting the precious assets of charity diverting those assets for their own personal use,'' Assistant U.S. Attorney Randy Bellows said.

The charity has installed new financial controls and a code of ethics since Aramony's departure, United Way of America president Elaine Chao said Monday.

Aramony and Merlo could get about five years in prison. Paulachak could get about two years. All three plan to appeal and are free on bond pending a June 14 sentencing hearing.

The government depicted the 67-year-old Aramony as a dictatorial executive who treated girlfriends and cronies to vacations and tried to intimidate or buy off those who might expose him.

Prosecutors said he repeatedly propositioned younger women and romanced them with United Way money, billing the charity for getaways to London, Paris, Egypt, Las Vegas and other spots.

The defense contended that Aramony, who led the charity for 22 years until he resigned in disgrace in 1992, suffered from brain atrophy that made him more impulsive and less able to reason.