Posted on 12/08/2004 4:25:42 AM PST by Timeout
The former director of Camillus House surrendered Tuesday on charges he defrauded the well-known agency for the poor by using homeless labor and charity dollars to renovate his privately owned homes.
Dale Simpson, 58, was booked into the Miami-Dade County Jail on two counts of grand theft, three counts of sales-tax fraud and one count of petty theft. He is accused of using more than $10,000 in materials and labor for personal gain. Simpson posted $15,000 bond and was released.
The charges stem from a Herald investigation into his use of homeless clients, Camillus employees and charity credit cards for renovations on two homes he owned in Miami between 2002 and his resignation in March.
Simpson has denied the allegations, and argues he paid every personal renovation bill that was submitted to him by the charity's work program.
''These charges will be vigorously defended [against],'' said Simpson's attorney. Richard Marx. ``He will plead not guilty. We look forward to going to trial and to deposing witnesses in this case.''
He decried the charges as ``comical.''
''It's sad that it was filed at this time when the impact on Camillus is going to be serious and all negative,'' Marx said. ``If this is all they've got it's pathetic, it really is.''
Miami-Dade State Attorney Katherine Fernández Rundle said the timing of the charges had nothing to do with Camillus' holiday fundraising. ''The timing was dependent on when he decided to steal from the homeless,'' she said. ``It's a breach of our trust because all of us believe deeply, and still do, in Camillus.
''What he did is not tolerated by Camillus House, by us, or by the public,'' she said.
A 25-page arrest affidavit filed by the Miami-Dade County Inspector General's Office details an alleged pattern of Simpson asking homeless clients to renovate two homes with materials purchased on tax-exempt charity credit cards.
HOME IMPROVEMENTS
Clients built a wooden deck, remodeled a kitchen, installed brick pavers, added a garage apartment, moved power lines and various other projects, the affidavit said.
''Simpson used his position and authority . . . to fraudulently obtain tax-exemptions and commit grand theft ... and abused the loyalty of his employees in order to commit these crimes,'' wrote investigators Dylan J. Hughes.
Simpson resigned -- with a secret $115,000 severence package from Camillus -- in March amid Herald inquiries and complaints from employees about his heavy-handed management style.
In March, The Herald reviewed internal records, conducted dozens of interviews and examined two years of credit-card receipts on three charity accounts.
Among the findings:
• Camillus maintenance workers used Camillus' tax-free credit accounts to purchase $4,447.97 in materials they say were for Simpson renovations between Jan. 1, 2002 and Dec. 31, 2003. Simpson wrote reimbursement checks totaling $2,310.
• A half-dozen maintenance workers -- with help from homeless clients -- say they spent hundreds of hours on Camillus time doing work for Simpson. The work ranged from home additions to ferrying his pet Doberman to the groomers.
• Some of the laborers received special favors at the charity's expense. Two received rent-free Camillus apartments. One former client who installed brick pavers in Simpson's driveway was given a free donated minivan.
THE CHARGES
The affidavit charges Simpson with three counts of sales-tax fraud involving 55 separate transactions on the charity's tax-exempt credit cards at three different stores from 2001 through 2003. The purchases totaled $2,999.18.
There are two counts of grand theft. One centers on $5,149.92 in labor costs for 12 employees on 20 separate tasks; the other on $1,018.65 in labor and materials for furniture he bought and had delivered to his home in Stuart.
According to investigators and Camillus executives, the charges only touch on Simpson's abuses. Last month, Camillus House lawyers sent Simpson an invoice for about $20,000 in labor and nearly $4,000 in materials for work done at his homes. ''The issue that's important for us is we sent him a bill a month ago and he hasn't paid it,'' said Bob Dickinson, Carnival Cruise Lines CEO and chairman of the Camillus board.
Dickinson said initial publicity over Simpson's alleged fraud in March caused donations to the charity to plummet by as much as $300,000 for the quarter. He said donations have picked up since.
Simpson's trouble began in late 2003, when employees began contacting The Herald with stories of his alleged abusive behavior in the office. The reports -- along with Herald inquiries -- prompted the charity's civilian board to take up its own investigation.
The Little Brothers of the Good Shepherd, the Catholic missionaries who run Camillus, immediately came to Simpson's defense. In a November 2003 letter to Camillus staffers, head Brother Savio Charron threatened lawsuits for slander against employees making ''defamatory statements'' about Simpson.
In the six years Simpson headed the popular charity, the Brothers nearly doubled his salary to $182,000, provided him with a $43,000 sport utility vehicle, and gave him an expense account that in his last year averaged nearly $2,000 per month in meals, gasoline and business travel.
The Little Brothers also loaned Simpson $35,000 from the charity to buy a home, then forgave remaining debt -- $32,570 -- after receiving only eight monthly payments.
Simpson was replaced in April by Miami consultant Paul Ahr, who says changes have been instituted to make sure similar abuses are prevented.
''It was an unfortunate event,'' Dickinson said. ``But now my focus is on the future of Camillus House.''
Lawyer words.
In the six years Simpson headed the popular charity, the [Little Brothers of the Good Shepherd, the Catholic missionaries who run Camillus], nearly doubled his salary to $182,000, provided him with a $43,000 sport utility vehicle, and gave him an expense account that in his last year averaged nearly $2,000 per month in meals, gasoline and business travel.
The Little Brothers also loaned Simpson $35,000 from the charity to buy a home, then forgave remaining debt -- $32,570 -- after receiving only eight monthly payments.
Perfect example of how "non profits" are out of control. I hope Justice reads this.
Miami Freepers:
Is the community up in arms yet about all this corruption?
Not long ago it was a politician (the mayor?) who was convicted of this sort of thing.
Then last year there was that huge scandal with Pat Tornillo, the head of the teachers union...that was a classic!
Severance pay was 115,000$
Florida, in general, however, seems to be filled with corrupt charity and real estate schemes.
Another charity to never give money to - along with Glenmary and Maryknoll.
Of course! I meant to list that one, but lost track of the outrages.
Consider: He has NOT paid the charity for the $20,000 they billed him for goods and mat'ls, but he was able to post $15,000 bail.
As an accountant, it's just amazing to me how many organizations operate with no internal controls to prevent things like this. When you pay someone that kind of salary and perks, most people assume that's enough to keep them honest. Instead, there's this psychological phenomenon that makes them feel MORE entitled to free perks and use of organization funds. I don't know how they live with themselves, but I've seen it over and over and over. I remain astounded that people are unaware of this, especially board members. And I'm not just talking about charities...it's rampant among mid-size businesses, too. And don't even get me started on unions and tax-exempt groups like the NAACP.
They are amateurs and goo goo eyed trusters in a version of human nature that does not steal because they and their family don't. My cousin had a problem in a Jewish day school she was principal of. They were ripped off by the treasurer or secretary. 60 thousand. Punishment was minimal. Theft is endemic to charitable organizations.
IIRC--The Miami Herald illustrated numerous charities that were shorted because of the severance.
Did the teachers union guy, Tornillo, ever go to jail?
If this clown could not afford the improvement to his home(s!!) on his salary and bennies, he should have sought a real job!
Don't know. Wasn't living in Florida at the time. Was in the area on business, and the United Way story was all over the news.
Miami Herald survey of charity salaries, published in April.
* Camillus House $10,051,907
Dale Simpson $182,000
* Jewish Community Services $12,640,412
David Saltman $161,009*
* James E. Scott Comm. Assoc. $9,009,230
Dorrin Rolle $147,796*
* Bayview Ctr for Mental Health $11,794,437
Robert Ward $146,904*
* Miami Beach Community Health Center $12,909,874
Kathryn Abbata $130,000
* Charlee of Dade $8,858,161
Mary Cagle $140,000
* Children's Psychiatric Cente $14,401,543
Robert Nolan $156,481*
* Little Havana Activities & Nutrition Center $12,448,495
Ramon Dorrbecker $125,000
* Community Partnership for Homeless $9,804,613
Dan Vincent $124,000
* The Village South $12,273,952
Matthew Gissen $173,000*
* New Horizons Comm. Mental Health Ctr $12,453,038
Eva Bestman PhD $120,000
* United Cerebal Palsy Association $11,355,638
Debra Terenzio, EdD $111,132
* Douglas Gardens CMHC $8,491,141
Dan Brady PhD $100,761
* Miami Rescue Mission $ 9,243,625
Frank Jacobs PhD $ 85,028
* Reflects salary as of the end of fiscal year 2002.
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