Action Center for Education and Community Development, Inc.
Outcome
Semeo Doe, Executive Director of the Action Center for Education and Community Development Inc. in Far Rockaway Queens, was indicted in 2019 on nine counts for embezzling hundreds of thousands of dollars of charity funds over nine years, submitting reimbursement claims for deceased employees, forging employee signatures on checks, and wire fraud in connection with misrepresentations to the NYC Department of Youth and Community Development.
Details
Action Center for Education and Community Development, Inc. — Nine-Year Embezzlement Scheme Including Dead Employee Payroll Claims, Far Rockaway (2010–2019)
Outcome: Semeo Doe, former Director and Executive Director of the Action Center for Education and Community Development, Inc. in Far Rockaway, Queens, was indicted in 2019 on a nine-count federal indictment for embezzling hundreds of thousands of dollars from the charity over nine years, including by submitting reimbursement claims for two employees after their deaths, forging employee signatures on checks, and wire fraud in connection with false representations to the New York City Department of Youth and Community Development.
The Action Center for Education and Community Development, Inc. was a Queens-based nonprofit that provided services to children and young adults and provided meals to individuals in need, operating in Far Rockaway — a high-need neighborhood in southeastern Queens. The organization received funding from New York City government contracts, particularly through the NYC Department of Youth and Community Development (DYCD), as well as other sources.
Between 2010 and May 2019, Semeo Doe served as Director and then Executive Director of Action Center. In his position of financial control, Doe executed a multi-method embezzlement scheme that accumulated hundreds of thousands of dollars in diverted funds. Doe directed Action Center funds to pay for his personal expenses, including international vacations, jewelry, luxury cars, and cosmetic surgery.
One of the most notable aspects of the scheme was Doe's continued submission of reimbursement claims for financial compensation for two Action Center employees — after those employees had died. By continuing to submit payroll or expense claims in the names of deceased employees, Doe created a paper trail that directed funds to accounts he controlled.
To cover the scheme's paper trail, Doe forged the signatures of Action Center employees on checks he had issued in those employees' names, then endorsed the checks himself and deposited them into his personal bank account. The forgery and self-endorsement pattern was systematic enough to be charged as a separate basis for the identity theft and wire fraud counts.
Doe was also charged with wire fraud and wire fraud conspiracy in connection with misrepresentations to the NYC DYCD — the primary city government funder of Action Center's programs. The specific misrepresentations to DYCD formed the basis of the government contract fraud aspect of the case.
Primary Source: DOJ EDNY — Former Action Center Director Indicted
How Crucible Prevents This
Automated payroll controls requiring independent verification of active employee status before issuing payroll checks would have blocked the reimbursement claims filed for employees who had died. Dual-signature requirements on checks above a threshold amount would have prevented Doe from unilaterally endorsing and depositing organization checks into personal accounts. A regular independent audit of the organization's reimbursement claims against NYC DYCD contract deliverables would have identified the misrepresentations to the funder.
Don't let this happen to your organization. See how Crucible works.
See How Crucible Works