December 07, 2007
Red Cross Clears Ousted CEO of Financial Wrongdoing
By Ben Gose
Mark W. Everson, the former president of the American Red Cross, did not improperly use the charity’s money while having an affair with the head of a Red Cross chapter in Mississippi, the Red Cross has announced.
Mr. Everson, who is married, resigned last month after an employee in the national office told the charity’s board about the affair. The board said it had lost confidence in his ability to continue to lead the organization.
The review of Mr. Everson’s spending focused on travel costs and expense reports, according to Carrie Martin, a Red Cross spokeswoman. It was conducted by the charity’s office of investigations, compliance and ethics, under the direction of the general counsel.
“This was just a matter of due diligence,” Ms Martin said. “We started looking into this as soon as we heard the news. It’s a question that is immediately raised in any kind of situation like this, and the Red Cross has a responsibility to determine that there was no misuse of donor dollars.”
Mr. Everson did not immediately return a phone call seeking comment.
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This is exactly the sort of cover-up I expected from the folks at the Red Cross. Meanwhile, I continue to hear from ARC insiders and others involved with HRP who have forwarded tons of information showing both Mark Everson and Paige Roberts involved in collusion. This is still called embezzlement and theft.
— Kirby_Sommers Dec 7, 01:29 PM #
Red Cross insiders continue to step forward with information about Mark Everson, Paige Roberts and the corruption within the American Red Cross. Below see one of the many letters I’ve received. This one from an ARC “insider” urging me to continue my efforts for an independent oversight of the Red Cross.
ALERT ALERT ALERT in Mississippi 100 Homes in 100 Days Program
I also want to alert everyone in Mississippi who has had contact with the American Red Cross NOT TO SIGN ANY PAPERS if approached by ARC employees/volunteers.
The Red Cross just yesterday began going door to door to the homes of those in the 100 homes, 100 days project (and perhaps others) — making folks sign a statement of the work/other given to them by ARC. These families do not know what they are reading, nor are they given a copy of the letter they are signing for the Red Cross.
IF YOU OR ANYONE YOU KNOW HAS ACCESS TO THESE FAMILIES, PLEASE ADVISE THEM NOT TO SIGN THIS LETTER!!
The Red Cross is once again looking for ways to cover-up and continue to deceive the American public and the world. Let us not allow that to happen! Not to Katrina survivors, not to anyone!!
Kirby Sommers
~~~~~~~~~~~~~~~~~
“Dear Ms. Sommers,
I just wanted to encourage you to continue to push for a robust system of fully independent oversight to be implemented at the American Red Cross, the Enron of relief agencies.
I have witnessed firsthand and from within the organization the kind of abuse, incompetence, discrimination and malfeasance that infects the organization’s culture.
Regardless of its theatrical protests to the contrary whenever a scandal breaks out, ARC management and top leaders are incapable of taking appropriate measures to ensure accountability, transparency, and to grow a culture befitting the nation’s largest humanitarian organization.
Any honest and alert “Red Crosser” would attest to the sorry state of the organization at both the national and local level. But few are willing to do something about it. In short, not unlike an addict, the agency needs urgent outside intervention.
Many in ARC leadership (both paid and volunteer) continue to behave with impunity because of high-up political support from primarily moneyed Republican powerbrokers, while taking full advantage of the agency’s uniquely hybrid legal status as both a private charity and a federal instrumentality.
Many in the leadership shamelessly feed off of ARC’s hard-earned 126-year brand as a charity to exploit America’s naive generosity during times of disaster to raise millions they are not fit to spend.
In the wake of Katrina, politicians spent years in meetings and investigations and millions of dollars to overhaul ARC’s governance for the first time in 60 years, culminating in the 2007 ARC Modernization Act.
Sadly, the Act has no teeth, because it fails to impose on the agency truly independent oversight (e.g. by the State Attorney General).
With foxes assigned to mind the hen house, no wonder we continue to hear such a cackle. Americans deserve better than this from a national relief agency.
Thanks to you and a small but credible chorus of determined voices (such as Paul Light and Richard Walden), perhaps more Americans will care enough to stop ARC from getting away with it. Otherwise, they may wish they had the very first day they become vulnerable enough to have to depend on it.
Please keep it up.”
NAME WITHHELD
— Kirby_Sommers Dec 7, 09:01 PM #
Kirby,
You sound very bitter and your posts seem to have a tone of “jealousy”. Being a 10 plus year employee of Red Cross I will tell you we are not perfect, but you find me another non-profit (heck even a for profit) organization that accompliches anywhere near the level of service delivery we do. There isn’t one!
By looking at your website it is obvious you are self centered and care what people think of you…why else would you post that “glammer shot” of you on your website? Move on Kirby!
— Fred Dec 9, 04:51 PM #
This kind of name calling is not productive. If you have specifics, let’s see them. Otherwise, to quote the King of Spain, please “shut up!”
— DC Lawyer Dec 10, 03:51 AM #
Though I am an outsider, I am also inclined to err on the side of caution and agree with Kirby’s stance that independent oversight is needed. If Fred is truly a long-term employee of the Red Cross, his inappropriate personal attacks (calling Kirby self-centered, bitter, and jealous) only further tarnishes the ARC’s image for me.
— Katie Dec 10, 08:58 AM #
I am surprised at these comments and know that there is little truth to any of the accusations that have been presented by Sommers.
You first talk about a “cover-up” from the Red Cross. How can an organization who’s own internal policies and procedures uncovered inappropriate action by an employee and then who publically separated that employee be covering-up anything? The Red Cross has been much more open about this than other companies and charitable organizations have been during simular instances. Your critique about the 100 HOMES IN 100 DAYS PROGRAM is nonsensical. You don’t mention what the papers people are being asked to sign are, in your opinion, unacceptable. You even state that the Red Cross is “making folks sign a statement.” The Red Cross can’t “make” anyone sign anything. You never indicate why you think that being asked to sign a statement of what was provided to a resident by a charity is unacceptable. You merely imply that the Red Cross is guilty of doing something unethical. Furthermore, you fail to state that the 100 HOMES IN 100 DAYS PROGRAM is a local charity of which the Red Cross is only a partner, agreeing to help fund the homes from its Hurricane Recovery Fund. There are 5 other charities involved as partners in this project, but you fail to mention these. All of this information is easily accessible to the public at http://www.100homes100days.com/home.html
The American Red Cross is chartered by Congress and as such, accountable to the Congress. That is the oversight.
The Red Cross is not a governent agency, but is accountable to the United States Congress, its volunteer, elected Board of Directors, its donors and volunteers. That is the oversight. Mr. Everson’s departure is an example of that oversight working, not failing. Please work on getting your facts clearer.
— Withheld Dec 10, 11:19 AM #
I am in deed a long-tem employee of the Red Cross. Take a moment to do a little research on Kirby and it will become painful clear much of her ranting and raving is in far left field, baseless and driven by nothing more then her personal agenda.
— Fred Dec 10, 01:09 PM #
I’ve said it before and I’ll say it again. If the Red Cross were an agency of cover-ups and greed, why didn’t they wait until after the new year to expose this incident? Most of the nearly 200 chapters of the American Red Cross rely on their Holiday and/or Year-End financial campaigns to sustain their organizations for an entire year. The Board’s accountability to the American people took prececence, however, and many chapters are suffering. Our very own government didn’t oust President Clinton when he used his status (gained by our trust) and our tax dollars to globally embarrass and discredit our country and its people for decades to come, and we still love him and our government. Yet we admonish and abhor an organization that controls no one and indiscriminantly outpours generosity upon anyone who needs it, when this organization seflessly rejects immorality and incompetence at a crucial fundraising time. I am prouder than ever to say that I am an employee of the Red Cross, even if it means that I won’t be getting my raise this year thanks to Everson and Kirby and people like them. May your homes never destroyed by fire or other disaster; may you never need CPR, first aid, a lifeguard’s rescue, or a CNA at your hospital bedside; and may you never need to tell a loved-one on active duty overseas that they need to come home to attend a funeral. But if you do, we’ll still be there for you because we are—above all—humanitarians.
— AY Dec 10, 02:52 PM #
Correction: there are 756 chapters of the ARC. I meant to type “nearly 800 chapters.”
— AY Dec 11, 10:05 AM #
Here is a follow up on the 100 Homes 100 Days problems. I interviewed 8 insiders for this. BTW: I have worked probono on behalf of Katrina survivors since 8-31-05. In addition to having helped them to DIRECT access to donor funds – whether it was a home or a meal. I’ve been stunned by what has come to my attention and what I have personally seen on the part of the Red Cross. If the Red Cross has nothing to hide, then it should offer the public an outside audit.
RED CROSS IN RED HOT SEAT AGAIN: 100 Woes, by Kirby Sommers
Program Allegedly Misappropriated Katrina funds
A Red Cross program, 100 Homes in 100 Days, formed to address the biggest issue remaining in Katrina recovery: affordable housing for families impacted by Hurricane Katrina in Pascagoula, Mississippi is being accused of alleged mismanagement of funds, poor oversight, and defrauding dozens of unsuspecting families.
A Red Cross Press Release dated March 26, 2007 states:
“Five organizations lead a coalition effort to renovate and rebuild 100 homes in 100 calendar days. The American Red Cross, Salvation Army, Mississippi Home Again, Hope Has a Face Foundation and Jackson County Community Services Coalition have created a project process that focuses on rebuilding entire neighborhoods in a compressed timeframe.”
“I believe there’s collusion on the part of Mark Everson and Paige Roberts on the 100/100 program,” one recovery specialist, who wishes to remain anonymous, told me during a recent interview.
You read it right: that would be the same Mark Everson who just got canned from the Red Cross and the same Paige Roberts who was named as Everson’s married mistress — CEO of the Southeast Mississippi Red Cross chapter.
The recovery specialist added, “Working with the Long Term Recovery Committee we have roundtable meetings and everyone has oversight. Except for Paige, she told us she had been given a waiver from the national office, so all they did was ask for money with just the person’s name, no receipts, no paperwork, and got as much as $30,000.00 for each home.”
According to an article in the Mississippi Press dated July 5, 2007, the project ended on the 4th of July with only 65 homes completed.
Jim Yancey of the Jackson County Community Services Coalition is quoted in the article as saying “We will finish all 100 homes.”
Here’s where we can start dissecting this. First, it is not 100 homes, the real number of homes in the project is 99. At some point someone decided 100 was better for generating publicity and it became known as the 100 Homes 100 Days Project.
100/100, as it is referred to within the agencies, was funded through the Red Cross’s Means to Recovery program (another heavily criticized Red Cross Katrina help project) allotting a cap of $20,000 to be used per home. The Salvation Army added another $10,000.
Roberts has allegedly tapped into all funding available for every home in the project. But none of the families in homes either demolished or yet to be completed know their portion of the money has been used up.
“Where is the money?” A second recovery specialist, also wishing to remain anonymous, asked with concern. “If you request funding once, you can’t go back and ask for more funding. You have to follow the proper channels and that wasn’t done. The Red Cross broke its own rules. All of us have to follow Red Cross’s rules. But not Paige.”
And there’s more. None of the families were given a case worker, although each one was assigned one with Red Cross. Then there’s the issue of extra money Roberts is reported to have requested and received from national headquarters in Washington, D.C. to hire more case workers.
“You can’t draw $30,000 for someone’s home and put $5,000 of it in that home and then use the other $25,000 somewhere else. The Red Cross did that in every case that I can think of!” A former relief group director, who also wishes to remain anonymous exclaimed. “I have relatives that have a home in that area and I haven’t disclosed this to them because I don’t know what to do after that. There was no accountability, no oversight.”
Every person I spoke with said they contacted ARC’s national headquarters about the problem but their pleas for help went unanswered.
Another well known nonprofit, which I won’t mention here, has spoken with some of the local groups about finishing the project. The problem is all parties are concerned they won’t be able to do this without exposing misappropriated donor dollars on the part of Paige Roberts and the Red Cross.
Wait a minute: where’s the concern for the well being of survivors? In my opinion, they come first. That’s who the money was intended for. But, by now, it’s pretty clear Red Cross has lost sight of their mission in the Hurricane Recovery Program.
Accountability and disrespect for donor dollars is at the heart of the matter. The Red Cross, despite its countless debacles and cries from the public for transparency, continues to operate with virtually no oversight.
On December 7th just days after firing Mark Everson the American Red Cross quietly stated they found no financial wrongdoing on the part of their ousted Chief Executive Officer.
According to Carrie Martin, a Red Cross spokeswoman, the review of Mr. Everson’s spending focused on travel costs and expenses reports. It was conducted in-house by the charity’s office of investigations, compliance and ethics, under the direction of the general counsel.
A forensic audit was supposed to have taken place. These types of audits aren’t usually concluded as quickly as Everson’s was. No documentation was ever produced to the public, nor is any forthcoming.
And how is it that CEOs of large organizations and politicians caught with their pants down normally get ravaged by the media with their follies as front page fodder for days, even months on end but this juicy tidbit within the largest nonprofit on the planet, gets only three mentions in the press? One of which was local.
The buzz stayed on the internet.
With the media protecting the Red Cross and not caring enough to cover any more Katrina related topics, thank goodness for outlets like blogs and news forums and online publications. Which, of course, leads to more revelations…
Did I mention Everson sent his daughter to stay in Roberts home for three weeks to work as an interim during the summer? Hmmm….
And, as for whether or not Mrs. Roberts, who is now expecting Everson’s child will get fired or not – seems she’s got the upper hand.
It is rumored the Board of Directors have requested her resignation, among other things. But the Mississippi Queen has no intention of going anywhere anytime soon. Someone is stepping down, but it isn’t Paige Roberts. Off with their heads, the Queen has commanded.
Kirby Sommers
2007 Copyright
— Kirby_Sommers Dec 14, 09:41 AM #