This red hot Red Cross sex scandal has sent shockwaves throughout the nonprofit community. But is there something more sinister here? A conspiracy perhaps? Could the Red Cross' quick as lightning firing of Everson be a cover-up for a much more serious offense?

The Red Cross has stated it is undertaking a forensic audit of monies spent by Everson to determine if any of the charity's money was used inappropriately as he romanced Roberts. If, indeed, he is found to have dipped into Red Cross funds, then isn't this called "embezzlement?" Don't people go to jail for this?
The whole thing is moving very quickly - too quickly for this sluggish bureaucratic agency to make sense to those of us who have kept an eye on their every move for the past several years as we've waited for Katrina recovery donations and grants to filter down to needy survivors.

Personally speaking, I've witnessed so much suffering on the part of individuals and families that every misspent, missing or misappropriated dollar is one dollar too much to spare. I'd rather see, as I imagine would all who donated to the Red Cross and all who remain in need, Katrina donations and grants used to relieve the mass human suffering which still exists.

During the past few days, I've noticed a lot of Red Cross information regarding embezzlement and fraud within the Red Cross disappear from websites - even AOL web pages! In fact, the entire website for the Southeast Red Cross chapter is gone! All that's left is their address, phone number and the words: "Website under construction."

I noticed the same thing right after the Red Cross was forced to publicly speak about the Means to Recovery program. Other volunteers and a few journalists also witnessed the changing and disappearance of information.

There is no doubt in my mind that Everson misused Katrina donations. He was having an affair with someone connected to Katrina - and with both parties being married those dalliances had to be paid with money neither one's spouse could trace. Red Cross money. Katrina donations. Survivors' money.

The questions everyone should demand from the Red Cross are: How much money was misappropriated - in addition to the $10,000 the Red Cross gave Everson upon his departure for "health care" - and why is the Red Cross not referring to possible misappropriated funds as embezzlement?

I'll tell you why: Having the CEO of the American Red Cross accused of embezzlement would mean he would go to jail. And it would stop people and corporations from donating, which would be even more disastrous to the Red Cross than any other fiasco to date - the Everson-Paige affair included.

For this reason, I suspect the Red Cross will never disclose its findings of impropriety against Everson - and possibly Roberts, if they look into the Southeast Mississippi chapter's records - citing confidentiality concerns. The Red Cross will then publicly pat themselves on the back for having done a splendid job and close the door on the whole sordid episode.

But, wait ... there have been serious fraud and embezzlement problems we can trace. I'll list some of them here:

Red Cross misappropriated donor dollars: Quick review

1. Eileen Therese Saxon of the Asheville, North Carolina, Red Cross chapter was charged with embezzling $165,000 - 9 percent of the chapter's $1.25 annual budget. (Source: Ashville Citizen Times)

2. Karen Shuerger, former assistant director of accounting at the Orange County, California, Chapter of the Red Cross, has been sentenced to six months in federal prison and ordered to pay restitution in the amount of $110,000. When she is released, she will also serve three years of supervised release and six months of home detention. (Source: NY Times)

3. Red Cross Director Jonathon A. Jarrell of Virginia was indicted on one count of embezzlement. Jarrell allegedly embezzled about $16,452 from the chapter between November 2004 and July 2006.

4. Joseph Lecowitch, CEO of the Hudson County Chapter in New Jersey, and his bookkeeper, Catalina Escoto. Escoto gave herself $75,000 in bonuses. According to prosecutors, these two stole well over $1 million Red Cross donor dollars, squandering them on gambling and each other. (Source: NY Times)

This doesn't include all the money that was lost to volunteers and paid staff during the early days of Katrina, nor does it include reports by Red Cross personnel about bags and bags of cash disappearing.

In a New York Times piece by Stephanie Strom, titled "Red Cross Quietly Settles Case of a $120,000 Theft," Strom states that the Connecticut chapter of the American Red Cross settled for less than half of the money from its insurance company. And she adds that this isn't an isolated case.

If the Red Cross is accustomed to going to their insurance company and taking less than what has been stolen, rather than pursue the matter in court just to keep it out of the headlines - then both donors and their intended recipients have been wronged.

Daniel Borochoff, president of the American Institute of Philanthropy, a charity watchdog group, has said that the Red Cross should be subject to state oversight like other charities. The Red Cross is only subject to federal oversight - which they claim is enough vigilance. Apparently not.

The $1 million New Jersey Red Cross theft is reported to have been discovered due to sloppy bookkeeping. I would venture to guess this would not be the case if Mark Everson is discovered to have used Red Cross money inappropriately. As the former head of the IRS, Everson would have knowledge of the most intricate schemes imaginable. It makes the mind race with all sorts of heart crushing scenarios.

According to The NonProfit Times, there have been cases during the past few years where the charities involved refuse to make the full facts known to the public. "In our view," they state, "this sort of selective disclosure (spin) is wholly inadequate. When a charity is using funds raised from the general public, it has a duty to account fully to the public. If that is not happening, then it is time to make it happen."

If Everson is found to have ripped off donor dollars, he should go to jail. Additionally, the Red Cross should replace every stolen dime from all sources and put this money back into the till. No more lies, no more spin. Give us accountability or don't continue at all.
Donors to the American Red Cross should be outraged.

Copyright ©2007. Kirby Sommers is the founder and president of Katrina Home Drive. She can be reached at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

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