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Probe Finds Puerto Rican Day Parade Fundraisers Mismanaged Over $1 Million
By
Lauren Evans
Published Feb 13, 2014
Modified Feb 13, 2014
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By
Lauren Evans
Published Feb 13, 2014
Modified Feb 13, 2014
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As predicted earlier this week, State Attorney General Eric Schneiderman announced today he's replacing the bulk of the Puerto Rican Day Parade organizers, having found that fundraisers willfully mismanaged over $1.4 million in donations since 2008.
The shakeup was announced at a press conference this afternoon, though news of its coming has been circulating for days. According to Juan Gonzalez at the Daily News, the 9-month probe revealed "unreported revenues, massive misuse of donated airplane tickets and non-existent scholarships" perpetrated by the event's longtime fundraiser, Carlos Velasquez. The more stunning findings include vastly under-reported figures for donations made to fund scholarships, as well as $275,000 in flight vouchers that appear to have been redeemed for "personal use by [Velasquez] or his family members, [and for] business purposes unrelated to [the parade].”
The agreement announced today requires Velasquez and his associated Galos Corporation to pay $100,000 to the parade's organizing body, as well as forgive a $1 million debt apparently owed to him. Velasquez and his corporation are also "permanently barred from any future business role" associated with the parade or its organizers.
Ten new directors are being added to the parade's board, and three of its six current directors have stepped down—including President Madelyn Lugo—due to failure to "implement basic financial controls or exercise adequate supervision over Galo's’ conduct."
A statement issued by the AG makes it clear that the intention is not to force the parade's cancellation, despite the overhaul coming just three months ahead of its scheduled date.
“As the parade organizer, this nonprofit has a responsibility to the Puerto Rican community, and to its donors, to ensure that the parade is a source of pride for all New Yorkers," he wrote. "With the reforms we are announcing, the new board can now take responsibility for putting the NPRDP on firm footing, so that the parade can be a success both this year and well into the future.”
The full report is available in the below PDF:
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