Posted on 2/6/2004, 4:17:33 AM by Libloather
Homestead racked up thousands in travel
2-5-04
By Lex Alexander, Staff Writer
News & Record
Posted 7:30 a.m.
GREENSBORO — More than a dozen cruises, with expenses topping $112,000, were paid for with credit cards belonging to nonprofit home builder Project Homestead between 1997 and 2001, city records show.
The records, compiled during the city’s recent audit of Homestead and released this week, also document other non-cruise travel purchases for places such as St. Thomas and the Bahamas with corporate credit cards issued to senior employees of the nonprofit. Some of the travel paid for by Homestead involved people who were not Homestead employees, which city auditors have said is improper.
The cruises date at least to late 1997 and became more frequent during the period covered by the audit. The business purpose, if any, of these trips remains unclear, and the records indicate that only about a third of all personal expenses charged to Homestead credit cards during the period were repaid.
Use of Homestead credit cards for personal expenses was improper, city auditors say in the documents. Use of city grant money for purposes unrelated to Homestead’s tax-exempt purpose of building affordable housing would violate the nonprofit’s agreement with the city. Under some circumstances, it also could constitute a violation of federal tax law by the nonprofit, its employees or both.
A criminal investigation of the nonprofit’s finances, involving city, state and federal agencies, began this past summer. No charges have been filed.
Because funds from many sources were “commingled,” or kept together in one Homestead account — another violation of Homestead’s agreement with the city — auditors cannot say how much city money might have been spent on the travel and expenses paid for with credit cards, but auditors state in the documents that it is logical to conclude that some was.
Greensboro gave Homestead almost $5.8 million during the years covered by the audit, 1997 through 2001. The nonprofit was supposed to use the money to build or renovate housing for low- and moderate-income families. Since its 1991 founding, it has built or renovated about 700 homes in Greensboro and about 300 elsewhere in the state, and has received more than $17 million from the city.
After the city’s critical audit report, the organization filed for Chapter 7 bankruptcy liquidation this past week.
Most of the cruise expenses were charged to Homestead credit cards belonging to the Rev. Michael King, Homestead’s founder and president, and Randolph Mitchell, then the nonprofit’s chief operating officer and chief financial officer.
King was found dead
Dec. 6 at his lakeside home in Rockingham County. The state’s chief medical examiner has not ruled on a cause of death, but foul play is not suspected.
Mitchell left Homestead in December 2001 and sued King and the nonprofit in May 2003, alleging violation of a termination agreement. Messages left for him and his attorney, Randolph James of Winston-Salem, were not returned Wednesday.
The exact number of cruises is not clear because some groups of expenses falling on the same day, or very close to one another, could be for the same cruise or different ones.
The records also document thousands of dollars in expenses for lodging, air fare and retail purchases such as jewelry in such locations as Florida, the Bahamas, Grand Cayman and Jamaica during the periods of these cruise expenses, as well as thousands of dollars in other travel expenses apparently not related to cruises.
The records often don’t say definitively who took the cruises or explain the purpose of airline trips. In one case, records show that airline tickets to and from Miami were paid for on the same day in June 2000 as a purchase for the M/S Norway, a Norwegian Cruise Line ship that at the time was based in Miami. The airline tickets were issued in the names of King and his wife, Charles Etta; Mitchell and his wife, Renee; and John Underwood and his wife, Paula.
John Underwood, formerly a key Homestead employee, manages the Krispy Kreme doughnut shop in the Dudley-Lee Professional Center on East Market Street, in which Homestead was a majority investor until recently.
Underwood said Wednesday that he recalls going on only one business trip with King, a 2000 trip to suburban Washington for a conference sponsored by the U.S. Department of Housing and Urban Development. He said he went on one cruise in 1998 or 1999 with other members of his church, Garden of Prayer Baptist, where King was pastor, but paid his own way.
Renee Mitchell said Wednesday that she recalls going on two cruises related to Homestead. The first, in September 1999, was a “company cruise” intended as a team-building exercise for Homestead employees, she said She did not work for Homestead at the time, but her husband paid for her to come along, she said.
The other cruise, she said, was a Caribbean cruise in May 2001.
About a month before his death, King called the News & Record and insisted that the May 2001 cruise was for business purposes. King said he was worried his funding sources might be cut off at some point and that he hoped to find a benefactor who would help Homestead. For example, he appealed to TV talk-show host Oprah Winfrey and her mother, but without success, King said.
King said he then tried to contact Tom Joyner, a nationally syndicated radio host. King said he hoped Joyner might give Homestead publicity that could attract benefactors.
Attempts to get an appointment with Joyner failed, King said, but an employee of the parent company of Greensboro’s WQMG (97.1 FM), which carries Joyner’s show, suggested in multiple memos to King that if he and other Homestead officials took part in an annual cruise Joyner organizes over Memorial Day weekend aboard a Royal Caribbean ship, King could get a chance to talk to Joyner and possibly get “face time” with other celebrities as well. Past cruises, for instance, have featured the comedian Sinbad and actress Kim Fields, who played Tootie on the 1979-1988 TV show “Facts of Life” and is now a director and producer.
Joyner’s annual cruise benefits his foundation, which in turn provides scholarship money to historically black colleges and universities. This year’s cruise, information on which can be found on Joyner’s Web site (blackamericaweb.tomjoyner.com), invites “you and whomever else with a good credit card and a thong.” Fares range from $1,950 to more than $4,700, depending on size and location of room.
Records show that Homestead paid about $20,000 directly to Tom Joyner Enterprises or the cruise line for the 2001 cruise, plus about another $8,000 in charges during the period of the cruise for “other vacation-type expenses,” as the auditors called them, such as air fare and lodging. The documents do not specify why expenses related to the cruises were categorized separately.
A call to Joyner’s personal assistant had not been returned late Wednesday.
Asked during an interview with the News & Record late last summer whether he considered the Joyner cruise a business trip, King replied, “Everything I do is business.”
City editor Mark Sutter and staff writer Stan Swofford contributed to this report
Cruise and vacation expenses charged on Project Homestead credit cards, 1997-2001
Date Expense Value
Jan. 18, 1997 Omni’s (jeweler) - St. Thomas jeweler $5,999
Aug. 28, 1997 Princess Casino $64.99
Aug. 28, 1997 Princess Casino $312.10
Aug. 28, 1997 Princess Casino 312.10
Aug. 28, 1997 Princess Casino 64.90
Sept. 10, 1997 Carnival Cruises 1,185.00
Sept. 10, 1997 Carnival Cruises 1,185.00
Nov. 7, 1997 Princess Casino 84.00
Nov. 10, 1997 Bahama Princess 210.00
Nov. 10, 1997 Bahama Princess 210.00
May 29, 1998 Princess Casino 680.00
May 30, 1998 Membership fee (Spouse) 55.00
July 15, 1998 Carnival Cruises 1,286.00
July 15, 1998 Carnival Cruises 954.00
July 27, 1998 Carnival Cruises 332.00
Aug. 9, 1998 MV Fantasy (Carnival Cruises) 699.55
Aug. 18, 1998 Grand Bahamas Vacations 323.00
Aug. 24, 1998 Grand Bahamas Vacations 28.00
Jan. 3, 1999 Steamship - Woods Hole 94.00
Jan. 5, 1999 Royal Caribbean 798.00
Jan. 5, 1999 Royal Caribbean 1,596.00
Jan. 7, 1999 Royal Caribbean 798.00
Jan. 8, 1999 Royal Caribbean 96.00
Jan. 24, 1999 Hard Rock Café - San Juan 16.00
Jan. 24, 1999 Hard Rock Café - San Juan 61.46
Jan. 25, 1999 Sunglass Hut 24.99
Jan. 25, 1999 Wyndham - Old San Juan 300.61
Jan. 26, 1999 Princess Jewelers - St. Thomas 1,710.00
Jan. 26, 1999 Wyndham - Old San Juan 5.99
Jan. 27, 1999 Ashbury’s - St. Marten 46.40
Jan. 27, 1999 Ashbury’s - St. Marten 88.00
Jan. 27, 1999 Ashbury’s - St. Marten 53.50
Jan. 27, 1999 Cuzzins - St. Thomas 42.75
Jan. 29, 1999 Carnival Cruises 700.00
Jan. 29, 1999 Nordic Empress (Royal Caribbean) 772.34
Jan. 29, 1999 Nordic Empress (Royal Caribbean) 577.50
March 1, 1999 Carnival Cruises 100.00
March 1, 1999 Grand Bahama Vacations 992.00
March 19, 1999 American Airlines 400.00
March 22, 1999 National Leisure Group 88.00
May 7, 1999 Gordano’s of Kissimmee 52.00
May 8, 1999 Golden Corral 29.02
May 8, 1999 Shell 20.00
May 8, 1999 Shell 30.00
May 8, 1999 Tropical Management (gift) 59.87
May 9, 1999 Gala Furniture (gift) 49.19
May 10, 1999 Orange Lake 25.48
May 11, 1999 Carnival Cruises - Miami 350.00
May 11, 1999 Carnival Cruises- Miami 6,078.00
May 12, 1999 Carnival Cruises - Miami 700.00
May 12, 1999 Destination Miami - (tour packages) 1,440.00
May 12, 1999 The Trane Co. - (tour tickets) 119.98
May 14, 1999 Grand Bahama Vacations 656.00
May 24, 1999 Carnival Cruises 400.00
June 21, 1999 The Travel Co. 350.00
June 21, 1999 The Travel Co. 350.00
June 24, 1999 Carnival Cruises 350.00
June 25, 1999 Carnival Cruises 100.00
June 29, 1999 Carnival Cruises 152.00
July 26, 1999 Carnival Cruises 2,275.00
July 26, 1999 Carnival Cruises 10,141.00
July 26, 1999 The Travel Co. - Orlando 359.00
Aug. 2, 1999 The Travel Co. 1,678.00
Aug. 9, 1999 Carnival Cruises reservation 375.00
Aug. 9, 1999 Carnival Cruises reservation 1,153.00
Aug. 17, 1999 Carnival Cruises reservation 1,141.00
Aug. 24, 1999 Cruises Only (cruise sales agency) 1,652.00
Aug. 25, 1999 Carnival Cruises 200.00
Aug. 27, 1999 Cruises Only (cruise sales agency) 834.00
Aug. 30, 1999 Cruises Only (cruise sales agency) 128.00
Sept. 7, 1999 Carnival Reservation Cruise 1,699.00
Sept. 8, 1999 Brien Boulevard (Grand Cayman) 38.50
Sept. 8, 1999 Kirk Jewelers 1,178.00
Sept. 11, 1999 M/V Imagination (Carnival Cruises) 1,589.88
Sept. 11, 1999 M/V Imagination (Carnival Cruises) 226.61
Sept. 11, 1999 M/V Imagination (Carnival Cruises) 1,321.20
Sept. 11, 1999 M/V Imagination (Carnival Cruises) 753.49
Sept. 11, 1999 M/V Imagination (Carnival Cruises) 870.01
Sept. 11, 1999 Top of the Port Restaurant (Miami) 14.00
Sept. 14, 1999 Beach Club Colony 13.00
Sept. 14, 1999 Beach Club Colony 19.45
Nov. 24, 1999 Explore Cars - Aruba 120.00
Nov. 24, 1999 Unknown restaurant - Aruba 132.00
Dec. 6, 1999 Cruises Only (cruise sales agency) 1,159.98
Dec. 6, 1999 Cruises Only (cruise sales agency) 1,159.98
Dec. 9, 1999 Cruises Only (cruise sales agency) 1,159.98
Feb. 4, 2000 Cruises Only (cruise sales agency) 1,147.00
Feb. 4, 2000 Cruises Only (cruise sales agency) 1,147.00
Feb. 4, 2000 Cruises Only (cruise sales agency) 1,147.00
Feb. 29, 2000 Cruises Only (cruise sales agency) 2,442.00
Feb. 29, 2000 Cruises Only (cruise sales agency) 2,442.00
Feb. 29, 2000 Cruises Only (cruise sales agency) 2,442.00
April 10, 2000 Cruises Only (cruise sales agency) 100.00
April 11, 2000 Grand Bahama Vacations 1,232.00
April 20, 2000 Carnival Cruises - Miami 900.00
June 3, 2000 American Airlines (To and from Fla.) 1,010.00
June 3, 2000 American Airlines (To and from Fla.) 1,010.00
June 3, 2000 American Airlines (To and from Fla.) 1,010.00
June 3, 2000 American Airlines (To and from Fla.) 1,010.00
June 3, 2000 American Airlines (To and from Fla.) 1,010.00
June 3, 2000 American Airlines (To and from Fla.) 1,010.00
June 3, 2000 M/S Norway 2,483.32
June 5, 2000 Grand Bahama Vacations 612.00
June 23, 2000 Grand Bahama Vacations 68.60
June 23, 2000 Grand Bahama Vacations 29.00
June 23, 2000 Grand Bahama Vacations 514.40
July 7, 2000 Cruises Only (cruise sales agency) 200.00
July 7, 2000 Cruises Only (cruise sales agency) 200.00
July 7, 2000 Cruises Only (cruise sales agency) 200.00
July 7, 2000 Cruises Only (cruise sales agency) 200.00
July 11, 2000 Grand Bahama Vacations (credit) -29.00
July 11, 2000 Grand Bahama Vacations (credit) -514.40
July 11, 2000 Grand Bahama Vacations (credit) -68.60
July 11, 2000 Grand Bahama Vacations (credit) -63.00
July 11, 2000 Grand Bahama Vacations (credit) -480.40
July 11, 2000 Grand Bahama Vacations (credit) -68.60
July 20, 2000 Carnival Cruises 573.75
Aug. 6, 2000 Classic Custom Vacations 3,343.11
Aug. 13, 2000 Tower Tours - San Francisco 123.00
Aug. 30, 2000 Carnival Cruises 288.75
Sept. 15, 2000 Carnival Cruises 2,178.00
Nov. 25, 2000 Carnival Cruises 500.00
Dec. 5, 2000 Tom Joyner Enterprises (Royal Caribbean) 1,000.00
Jan. 16, 2001 Tom Joyner Enterprises (Royal Caribbean) 1,268.00
Feb. 2, 2001 Tom Joyner Enterprises (Royal Caribbean) 1,000.00
Feb. 7, 2001 Tom Joyner Enterprises (Royal Caribbean) 1,534.00
Feb. 19, 2001 Tom Joyner Enterprises (Royal Caribbean) 1,266.00
March 9, 2001 Tom Joyner Enterprises (Royal Caribbean) 1,534.00
March 20, 2001 Tom Joyner Enterprises (Royal Caribbean) 4,600.00
March 20, 2001 Tom Joyner Enterprises (Royal Caribbean) 2,066.00
April 9, 2001 Tom Joyner Enterprises (Royal Caribbean) 1,532.00
April 17, 2001 Tom Joyner Enterprises (Royal Caribbean) 4,500.00
May 27, 2001 Smart Carte Miano 20.00
May 28, 2001 Chulani (Jamaica) Ltd. 68.80
May 29, 2001 Elizabeth Morehead Consulting - Fla. 85.00
May 29, 2001 Royal Caribbean - Miami 500.00
May 29, 2001 Tropical Trader Marlet & Bar (Grand Canyon) 181.00
May 30, 2001 Everglades Hotel - Miami 428.00
June 2, 2001 Triumph (Carnival Cruises ship) 851.17
June 2, 2001 Triumph (Carnival Cruises ship) 5,864.18
June 2, 2001 Triumph (Carnival Cruises ship) 202.94
June 29, 2001 Triumph (Carnival Cruises ship) 305.07
Note: While not specifically noted in the audit report, research indicates listings for Princess Casino refer to a casino in the Bahamas.
Source: City of Greensboro Internal Audit Division
King was found dead
Dec. 6 at his lakeside home in Rockingham County. The state’s chief medical examiner has not ruled on a cause of death, but foul play is not suspected.
Lightning strike?
I'd like to know what took them so long to find out about all the abuse.
Who were Homestead housing there, cops?
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