THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Tuesday, May 9, 1995 TAG: 9505090281
SECTION: LOCAL PAGE: B1 EDITION: NORTH CAROLINA
SOURCE: BY PERRY PARKS, STAFF WRITER
DATELINE: ELIZABETH CITY LENGTH: Medium: 58 lines
A local man suspected of misappropriating more than $100,000 in Albemarle Area United Way funds was formally charged Monday in Pasquotank County Superior Court.
J. Graham Foreman, 31, of the 1800 block of Rivershore Road, was indicted on 23 counts each of embezzlement and of malfeasance by a corporate agent, said Assistant District Attorney Mike Johnson.
The embezzlement counts each carry a 10-year maximum sentence. The maximum penalty for the malfeasance charges is 15 years each.
``I think it's good news,'' United Way Chairman Jerry Miller said of the indictments. ``That's what we wanted.''
Foreman resigned from his $14,500-a-year executive director job in February. He had been suspended without pay after United Way officials discovered a suspicious second version of the agency's annual financial report.
Johnson said Foreman will likely be served with the indictments early next week. While he would not say whether arrangements are being made for Foreman's surrender, Johnson said he did not expect ``any problem serving those papers.''
Foreman could not be reached for comment Monday.
On top of the criminal charges,Foreman faces a civil lawsuit by the United Way, which is seeking restitution for funds lost by the agency.
``Between March, 1993 and February, 1995 defendant diverted contribution funds from third party contributors to his own personal use and benefit,'' the lawsuit says. ``Most of these contribution funds were to be allocated to the various charitable organizations and agencies in the area.''
The suit alleges that Foreman established a secret bank account at Branch Banking and Trust Co., from which he wrote and signed 118 checks payable to cash or to himself, totaling $83,622.22. Foreman is also accused of writing 19 other checks from the unauthorized account and of ``deceitfully'' obtaining money from a United Way account at Wachovia Bank.
To cover up his activities, the suit charges, Foreman ``falsified documents'' that had been prepared by the United Way's accountant.
``As a direct result of defendant's conversion, misappropriation, breach of trust, concealment, fraud, deceit and unscrupulous conduct, plaintiff suffered damages in the amount of at least $102,143.35,'' the lawsuit says.
The suit seeks to recover the United Way's losses, including attorney's fees and other costs related to the case, and punitive damages.
The discovery of the missing funds led to an announcement in March that the Albemarle Area United Way's 20 member agencies, serving seven northeastern North Carolina counties, would not receive quarterly funds totaling about $45,000.
The United Way is still trying to collect on a $35,000 fidelity bond, which will determine if agencies receive funding next quarter, Miller said.
KEYWORDS: EMBEZZLEMENT UNITED WAY by CNB