Michigan Embezzlement Cases

Employees of Capital Area United Way discovered the embezzlement, which is estimated to have occurred over a period of at least seven years. Former vice president for finance, Jacquelyn Allen-MacGregor, worked for the United Way for 20 years, during which time she wrote more than 300 checks to herself on the United Way account, forging the required signatures of co-signers, then destroying the canceled checks. The checks were not posted to the United Way books but instead were recorded as pledges never received.

In February of this year, Ms. Allen-MacGregor pleaded guilty to the embezzlement, saying she used the stolen funds to purchase horses for her business, Celebration Quarter Horses. This spring the United Way has been able to recover nearly half of the stolen money by cashing three theft insurance policies and by selling some of Ms. Allen-MacGregor’s assets. – Jennifer Moffitt

GRAND RAPIDS, Mich. — A former United Way executive pleaded guilty Thursday to stealing nearly $1.9-million to buy expensive show horses in what is believed to be the biggest embezzlement case in the agency’s history.

Jacquelyn Allen-MacGregor worked in the Capital Area United Way in East Lansing for 20 years before resigning as vice president for finance in November. Prosecutors said she stole the money over seven years, beginning in 1996, and used it to fund her quarter horse business.

In pleading guilty to federal counts of check forging and engaging in an illegal financial transaction, Allen-MacGregor said she once paid $45,000 for a horse.

Allen-MacGregor, 46, faces up to 10 years in prison on each count at sentencing in May. She agreed to let the United Way seize and sell her assets in an effort to recoup the money.

The plea comes eight years after William Aramony, a former chief of the national charity, was convicted of defrauding United Way out of $600,000 to support a lavish lifestyle for himself and his girlfriends.

Under public scrutiny of charitable organizations after the Sept. 11 attacks, United Way of America last month instituted some additional checks and balances in its accounting procedures, said Brian A. Gallagher, president and chief executive officer of the organization in Alexandria, Va.

Allen-MacGregor said she stole the money by writing checks to herself on the Capital Area United Way account and forging the names of required co-signers. When the bank returned the canceled checks to the agency, she destroyed them.

The chapter now uses an accounting firm to reconcile bank statements.

Allen-MacGregor also said she deposited the money into two accounts she shared with her husband, one personal and one for the horse business, Celebration Quarter Horses. She said her husband knew nothing about the transactions because she handled the family’s finances.

Besides the possibility of prison time, she faces a maximum fine of $250,000 and three years of supervised release on each count.

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