THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Saturday, December 17, 1994 TAG: 9412170240
SECTION: LOCAL PAGE: B1 EDITION: FINAL
SOURCE: BY MIKE MATHER, STAFF WRITER
DATELINE: VIRGINIA BEACH LENGTH: Medium: 83 lines
A telemarketing company that solicits money for at least three local law-enforcement organizations is under investigation for embezzling cash donations, police have confirmed.
On Thursday, police using search warrants raided two offices of N.A.S. Advertising, Inc. and the home of company president Steven Agrios, according to documents filed in Circuit Court Friday.
Police confiscated several boxes of business and financial records and at least two computers, said Sgt. R. D. Markle.
Markle said computer specialists and accountants from the state police will examine the records next week.
The investigation began after an N.A.S. Advertising employee, David Cross, told Detective A.D. Hallingshead last month that company employees pocketed cash donations that businesses intended for various police groups. Some of the cash donations were to be used to buy food baskets for the needy, police said.
Cross said several local businesses and individuals contributed cash to N.A.S. Advertising for the police groups this year, but police say only one bank deposit has included cash.
Donations by check apparently had been properly deposited in the various accounts, police said.
Agrios' attorney, Glen Thompson of Pender & Coward, said his client isn't guilty of wrongdoing.
``I think this is a situation where one or two former employees have caused the investigation to happen,'' Thompson said. ``I believe N.A.S. will be vindicated, and then the investigation should center on the former employees.''
Thompson and police said Agrios is cooperating.
``I feel it is unfortunate that a business can be disrupted by the actions of former employees,'' Thompson said.
No one associated with N.A.S. Advertising has been charged with a crime relating to the embezzlement investigation as of Friday.
Cross, named in an affidavit as a police informant, told investigators the embezzlement was widespread during his nine months with the company. Cross said that the day after he spoke to Hallingshead, he was fired from N.A.S. Advertising.
N.A.S. Advertising solicits donations by phone for the Virginia Beach Police Supervisors Association, the Virginia Beach Police Benevolent Association and the Virginia Coalition of Police and Sheriffs.
An office employee usually visits contributing businesses to collect the money.
Investigators said they still are trying to determine what other non-police groups contracted with N.A.S. Advertising. Cross said the company worked with organizations throughout the state.
According to a search warrant affidavit, Cross told police that ``he has personally seen employees of N.A.S. Advertising take cash donations'' collected for police groups ``and embezzle those funds for their personal use.''
The affidavit also alleges that N.A.S. Advertising employees threw away cash receipts ``to hide evidence of cash donations accepted.''
Police said one of the company managers was also under in-ves-ti-ga-tion.
Markle, the police sergeant, said he expects the investigation to be lengthy.
Wrongdoing has not been alleged against any of the police groups that used N.A.S. Advertising to collect donations, police said.
N.A.S. Advertising was incorporated on Dec. 23, 1991. State Corporation Commission records show Agrios, of the 2300 block of Wheatstone Court, is listed as president and director.
Police say the company has two Virginia Beach addresses - a suite at 127 South Witchduck Road, and 303 34th St.
Police are asking anyone who has given cash to police or nonpolice organizations through N.A.S. Advertising to call Detective Hallingshead at 427-4101. ILLUSTRATION: POLICE SEEK HELP
Police are asking anyone who has given cash to police or
nonpolice organizations through N.A.S. Advertising to call Detective
Hallingshead at 427-4101.
KEYWORDS: INVESTIGATION DONATIONS by CNB