THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Wednesday, September 14, 1994 TAG: 9409140486
SECTION: FRONT PAGE: A3 EDITION: FINAL
SOURCE: STAFF & WIRE REPORTS
DATELINE: ALEXANDRIA LENGTH: Short : 46 lines
The government charged the ex-president of United Way of America and two fellow executives with conspiracy, mail and tax fraud Tuesday, accusing them of lavishly spending the charity's money on vacations, real estate and air travel.
The 71-count federal indictment named William Aramony, 67, president of United Way from 1970 until 1992; Stephen J. Paulachak, 49, a United Way executive between 1971 and 1988 and also president of an indicted spinoff company; and Thomas J. Merlo, 63, chief financial officer of the charity from 1990 until 1992.
The diversion of funds, previously reported in news stories, caused a shake-up at the national charity organization known to virtually all AmericansContributions to local United Way organizations decreased as a result.
Mike Hughes, president of United Way of South Hampton Roads, said Aramony's indictment could help the local fund-raising campaign, which was launched Thursday.
``I am hoping,'' he said, ``it has a positive effect from the standpoint people know there has been a follow-through and this guy didn't get away with anything. As a matter of fact, he is being brought to justice.''
Hughes emphasized that United Way of America is a trade association that provides services to local United Ways but is not a parent organization and does not dictate policy to them. United Way of South Hampton Roads will pay $68,000 in dues to the trade association in 1994, he said. That total is less than half of 1 percent of the $15.3 million the local United Way raised last year.
For its money, the local United Way receives training and media support like United Way TV spots during National Football League games. The national organization also provides data from other United Ways. ILLUSTRATION: Photo
Aramony
KEYWORDS: MAIL FRAUD TAX FRAUD UNITED WAY by CNB