Chair of Manhattan Chamber of Commerce Implicated in Nonprofit Embezzlement

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August 10, 2011; Source: Crain’s New York  |  Jeffrey Bernstein resigned his position as the chair of the Manhattan Chamber of Commerce one day after he was implicated in a $2.3 million embezzlement scheme allegedly carried out while he ran the Albert Ellis Institute, a nonprofit psychotherapy center. The institute has filed a lawsuit against J.P. Morgan Chase & Co. in which it claims that the bank allowed Bernstein to make 65 unauthorized transactions from the institute’s accounts from April 2010 to February of this year. As always, we have to wonder where the board was during this 11-month period.—Ruth McCambridge

  • Gayle Gifford

    It seems to be the month for embezzlement — the controller of the Mark Twain House in CT pleaded guilty after a bank employee questioned a signature on a check. Turned out she had been embezzling $1 million over 10 years.

    It’s hard to prevent all theft, despite even the best internal controls. But that it could have gone on so long… The need for two eyes on all accounts.