Case Study Review

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The Metropolitan Council on Jewish Poverty (Met Council) terminated Executive Director and Chief Executive Officer William Rapfogel in August of 2013 after the Board of Directors became aware of specific information regarding financial irregularities and apparent misconduct in connection with the organization’s insurance policies. As one of New York City’s largest human services agencies, providing over 100,000 New Yorkers each year with assistance in their fight against poverty, the Met Council took this information seriously. In order to ensure the Met Council’s operations are conducted with integrity and that their commitment to uphold high values is continued, the respected leader for over forty years promptly retained outside counsel to perform a full investigation into the matter (Metropolitan Council on Jewish, 2013). Mr. Rapfogel was charged with conspiring to inflate insurance payments and keeping one million dollars for himself, most of which was stashed in his Manhattan apartment that he shared with his wife. Some of the money was funneled to politician’s campaigns, who then kept his nonprofit flush with government funding. The twenty year scheme is alleged to have skimmed five million dollars from the venerable charity. (Hawkins, 2013). The case was brought to light by someone known as a whistle-blower. A whistle-blower is a person who reports illegal activity of their employers or of their organization to authorities (Colorado State University-Global Campus, 2014). Cases such as this raise questions about nonprofit organizations and their ability manage finances and the oversight that may or may not be present. Mr. Rapfogel is expected to face charges of grand larceny. According to Colorado State University-Glo... ... middle of paper ... ...tor in the community. Works Cited Buettner, R. (2014). More charges in scheme to defend a charity. The New York Times. Retrieved from http://www.nytimes.com/2014/01/08/nyregion/more-charges-in-scheme-to-defraud-a-charity.html Colorado State University-Global Campus. (2014). Module 7 – Criminal Law. [Blackboard ecourse]. In MGT 320 – The Legal and Ethical Environment of Business (p. 1). Greenwood Village, CO: Author. Hawkins, A. (2013). Charity bigwig charged in $5 million scheme. Crain's New York Business, 29(39), 2. Metropolitan Council on Jewish, P. (2013). Met Council Announces Termination of CEO William Rapfogel. Business Wire Rashbaum, W. (2013). Charity’s fired chief to face grand larceny charges. The New York Times. Retrieved from http://www.nytimes.com/2013/09/24/nyregion/charitys-fired-chief-executive-is-expected-to-face-grand-larceny-charges.html?_r=0

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