A former finance director of the Fay-Penn Economic Development Council is set to face a preliminary hearing next week on charges of stealing nearly $17,000 from the nonprofit. The accusations involve misuse of company credit cards for personal expenses and forgery. However, the accused claims she was terminated unjustly after reporting alleged conflicts of interest within the organization. An independent audit revealed significant unauthorized expenditures, leading to her dismissal. Legal proceedings have ensued as both parties present their cases.
Accusations of Financial Mismanagement and Retaliation
The allegations against Melony Reed center on her use of company resources for personal gains, including household items, veterinarian bills, and other purchases. Evidence suggests that Reed accessed credit cards under false pretenses, resulting in substantial unauthorized charges. Additionally, an independent audit uncovered discrepancies amounting to almost $17,000. Despite these claims, Reed maintains that her termination stemmed from whistleblowing activities concerning internal misconduct.
In greater detail, Reed is accused of using her position to make unauthorized purchases, totaling nearly $17,000. This includes household necessities, veterinary care, and even alcoholic beverages. According to reports, she borrowed credit cards from colleagues, claiming she had not yet received her own company card. Furthermore, several Amazon purchases were directed to her personal residence. During police interviews, Reed admitted to some personal purchases but attributed others to mistakes or miscommunication. She also faces charges of forging signatures on bank documents related to these transactions. Despite the evidence, Reed asserts that her firing was retaliatory, following her disclosure of potential conflicts of interest among board members and improper loan practices.
Call for Independent Investigation Amidst Organizational Concerns
Beyond the individual legal battle, concerns have arisen about the broader functioning of Fay-Penn. State representatives are urging an independent investigation into the organization's financial dealings, citing the lawsuit’s revelations of preferential loan practices and potential misuse of taxpayer-supported funds. These allegations challenge the integrity of the nonprofit's mission to support economic development.
State Rep. Charity Grimm Krupa has called for an independent probe by the state attorney general's office, emphasizing the importance of transparency and accountability in organizations like Fay-Penn. According to Reed's lawsuit, qualified community members were denied loans in favor of board affiliates, raising questions about fairness and impartiality. Approximately 70% of loans were reportedly allocated internally or to board members, leaving only 30% for external applicants. Such practices, if proven true, could signify a betrayal of public trust. Reed claims she reported these issues to higher authorities but faced retaliation instead of resolution. The controversy surrounding Fay-Penn highlights the necessity for thorough investigations to ensure ethical standards are upheld in organizations tasked with fostering community development.