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July 25, 2008

Shriners Investigative Committee Finds Possible Wrongdoing

The Shriners of North America fraternal organization and the Shriners Hospitals for Children violated ethics policies and may have knowingly filed incorrect information on federal tax forms, according to an internal investigation by the group, reports The New York Times.

The committee found that the chairman of the Shriners Hospitals Board of Trustees, Ralph Semb, had tried to dismiss a fund-raising executive who refused to use a direct-mail company that had close family ties with another board member, Gene Bracewell, thereby violating the group’s conflict-of-interest code.

The report also found that another executive had accused the group of falsifying financial information on its tax returns. However, the investigative committee that was appointed to examine accusations of wrongdoing was disbanded in June before it could further examine those claims, says John C. Nobles, a member of the committee.

When another committee member, Mahlon W. Hessey, tried to present the committee’s findings at the annual Shriners meeting in St. Louis in June, he was booed off the stage.

Mr. Semb and Mr. Bracewell said they did not try to influence the choice of the direct-mail company, and the board did not punish them.

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