The president of every company and non-profit has a legal duty to do what’s in the best interest of their organization, rather than in their own self-interest.
National Arts Club scandal put to rest with $950k settlement
Jul 10, 2013, Dan Orlando, New York Business Journal
Aldon James agreed today to pay $950,000 to settle allegations by the offices of New York Attorney General Eric T. Schneiderman that he committed the acts of “self-dealing and breach of fiduciary duty.”
James allegedly defrauded the not-for-profit National Arts Club by using the group’s funds for his own personal gain before being ousted as president in 2011.
Schneiderman says that the settlement “allows the club to close the door on a year of bitter discord and start to recover from the havoc that Aldon James and his cohorts wrought.”
The cohorts that the attorney general is referencing include James, his brother John and friend, Steven Leitner.
James is accused of using his former position to utilize the organization’s funds for his personal shopping sprees as well as taking up residence in various locations, including the group’s Manhattan HQ without paying rent.
“The message is clear,” said Schneiderman. “Those who abuse nonprofits for personal gain will be held accountable by my office.”
The club will receive the bulk of the settlement, while the remaining $50k will be absorbed by the state to cover the investigations expenses.