Calls for accountability reveal theft, misappropriation of public funds, and failed internal controls

By Sr. Correspondent, Antoine Craigwell

(New York, NY) - Ten months after the cancellation of "Pride In The City," there has been no comprehensive explanation from any of the so-called leaders to the New York Black gay community on what happened and why, after 21 years, People of Color in Crisis (POCC) was shut down. Financial irregularities and discrepancies unearthed at the New York State Black Gay Network (NYSBGN) led to unraveling an intricate web of deceptions, thefts, collusion, clique-ism - "sistahs" or "girlfriends," secrecy, intimidation, and falsifications and probing questions being asked about an almost $2.5 million POCC budget.


 

Copies of documents obtained by GBMNews.com, including a letter and an Aug 2008 site visit report from the U.S. Centers for Disease Control (CDC), one of POCC's major grant funders, which provided 50 percent of the organizations funding on three grants; detailed a laundry list of findings and recommendations, culminating in a decision to terminate all grants effective Aug 31, 2008. Additionally, a number of people, who were either employed by the NYSBGN or POCC, who now live in fear of retaliation, have come forward and are quoted as anonymous sources.
POCC was founded in 1988 and according to its still active Website, its mission is "…
to build community and improve the quality of life and health among gay men, bisexual, men who have sex with men and trans-gendered individuals of African decent through advocacy, education and direct services."

In New York's Black gay community, stories circulating about the failure of POCC mostly focused on publicized reports of charges filed against former executive director Michael Robeson for misappropriation of funds. Robeson, was employed at POCC in 2000, was a program director with responsibility for the Many Men, Many Voices or the 3MVs program, and was executive director from Apr 2007 until he was terminated in Jul 2008.

According statements made by David Watkins, POCC former board chair, in the CDC site report, Roberson was terminated for "incompetency, no checks and balances, lack of internal controls, poor communication with funders, and lack of professionalism."

 

August 2007,  Opening Night Ceremonies. Brooklyn, Marriott. Former POCC Execituve Director Gary English (left) receives an award from then  POCC Executive Director, Michael Roebson. Photo by Ocean Morriset

 
Yet, the real story is centered on a letter from the CDC signed by Roslyn Curington, grants management officer in the Procurement and Grants Office, dated Aug 28, 2008, which said that POCC failed to provide proper and adequate stewardship of federal funds and has materially failed to comply with the terms and conditions of the award [contracts], which include funds used for personal expenditures, funds used for other projects, funds used for travel unrelated to contracts, absence of a financial management system, no internal controls, and no separate accounting system. The decision to terminate the contracts, the letter continued, was arrived after observations made at a site visit during what was planned for the Pride In The City celebrations.

Among the list of observations, the letter stated that there was evidence of manipulation, falsification, alteration of accounting records and supporting documents. Citing the site visit report, the letter mentioned that brochures for the Pride In The City celebrations had highlighted clubs and parties for men who had sex with men, but did not address HIV testing or prevention messages at these events. The CDC letter left a 30-day window open for POCC to appeal the decision, which was not filed.

Watkins at one point denied that he was the board chair when the CDC and the state terminated their contracts, but changed his position when it was revealed that he was named as the board chair in the letter and site visit report, and then retreated into "no comment" status when asked about the Board's financials and composition, such as how many members made up the body and if the organization filed IRS 990 returns for fiscal years ending Dec 2007 and 2008.
Claiming to be a marketing entrepreneur living in the NYC, Watkins acknowledged that POCC officially ceased operations earlier this year and is in the process of being closed because of fiscal mismanagement by the executive director and the previous management.

"We got the organization after a lot of mismanagement had happened. When we found out, we shared the information with the CDC and with the AIDS Institute, and asked for their assistance and didn't get it," he said.

Evelyn Williams, the former interim executive director, who was appointed and assumed office on Aug 4, 2008 to conduct an agency-wide assessment and develop an interim work plan to be shared with funders, acknowledged the systemic failures of the organization, and pointed out lessons, which she hope would rise from this scandal, including recognizing the need for efficient management and leadership skills, possessing an understanding of how to manage other people's money, and those accepting Board positions to safeguard the responsibilities to ensure the organization remains alive.

"We need to move away from the drama and sensationalism that surrounded POCC. In the last year, there has been lots of talk about what was done at POCC, but no one has asked what we have learned," said Williams, who previously worked, since 2001, with POCC as a program consultant.

 

But, the back story, according to Mark McLaurin, a former POCC Board Chair, from Jan 2006 to Apr 2007, and former NYSBGN executive director, from Mar 2006 to Oct 2007, who in a previous story on GBMNews.com, "Understanding the failure of the Black gay Network," Jun 5, 2009, and who was blamed as the cause of the failure of the Network and accused of theft and mismanagement; came forward to attempt to clear his name. He insisted that during the time when he was board chair and executive director, Gary English, current NYSBGN interim executive director, had held two positions - executive director of POCC and treasurer of the Network - with direct oversight of the Network's finances. English confirmed in an interview that he was executive director with POCC from 1998 until Apr 2007 when he resigned, and was Treasurer of the Network from 2007 to 2008.

McLaurin said that even though he was on his way out as POCC Board Chair, despite his protestations about Robeson's unsuitability, and support for a much more qualified candidate, English pressured the POCC's Board to appoint Robeson as the executive director.

English said that while he may have recommended Roberson to the POCC three-member personnel search committee, he didn't have any undue influence on the selection process, and acknowledged that it was up to Robeson to carve out his own path as executive director. He said that as part of the three-man search committee for an executive director for the Network, he voted for McLaurin.
"How is it that an executive director who resigned, demand a severance package with health insurance coverage for a year - unheard of in non-profits, nine months salary - between $65,000 and $75,000, to be paid as a lump sum in cash, and to remain as a consultant for Pride In The City?" McLaurin asked. "Gary wanted Michael in there [POCC] because he wouldn't tell on Gary and he would do what he's told. Michael was Gary's fall guy," he said.

English said that when he resigned, he was a consultant with POCC for five months to assist with the transition to the new executive director, and that the health insurance benefits he received was normal for the nine years he worked with the agency, but ended up paying for the benefits himself after six months because POCC hadn't paid the bill.

At the time of the site visit, Jul 30 to 31, 2008, the CDC team met with Watkins. At the meeting, according to the report, the team was informed by Watkins that English was said to be misrepresenting himself on behalf of POCC, "Mr. English should 'no longer represent and/or speak on behalf of any and all official POCC matters.'"
In response English said as a co-founder, with Leo Wilton, PhD., assistant professor, Human Development and Africana Studies at the State University of New York, Binghamton University, of the 3MV program; he was involved with a research study which ended in 2007, and as the principal investigator, or person in charge, he was responsible for following protocols. But, after Roberson's termination, POCC declared that English no longer had any relation with the study, which he said was incorrect since data was still being tabulated.

A person familiar with POCC's finances, who resigned in Jun 2008 after alerting the organization's funders of the corruption, challenged McLaurin's assertions of "no thievery," which included falsification of documents and the manipulation of accounting procedures such as funds to purchase airline tickets for personal travel and assisting with "floating" payroll at POCC.

The CDC's site visit report stated that a request was made for documents supporting authorization of all travel, such as name of traveler, dates of travel, place of travel, purpose of trip, estimate number of days, mode of travel, and associated travel costs, including travel advances, if applicable, and copies of travel checks disbursed to applicable travelers; materials which were never supplied.

Putting a tangible face on Robeson's behavior, a former employee suggested imagining a $75,000 grant awarded to POCC to perform services; Robeson would have spent more money than the value of that contract.

"The over expenditure concerned me. There were a lot of items purchased, such as personal bills were paid: hair cuts, vacations, plane tickets, shopping at boutiques for $500 shoes, gifts for people Robeson was dating or involved with, and the organization's credit card for charges, including Rent-a-Center and buying Viagra online, all valued at about $90,000. Today the memory of my relationship with POCC leaves a bad taste in my mouth," the source said.

According to the CDC's report, the federal agency had evidence that both English and Roberson used the POCC's credit cards for personal use. But, English stated that POCC's credit cards were linked to his Social Security number and as such were his cards. He denied that any personal charges were billed to the CDC or the NYDOH and is dealing with American Express who has sued him for outstanding bills. The CDC report, however, claimed that there is $100,000 outstanding in bills and payment arrears for over two months. Also, while POCC's employees had not been paid for six weeks or three payroll cycles, Roberson had in Jun 2008, written himself a payroll check.

The report also stated that an independent CPA was unable to conduct the 2007 audit due to a lack of financial statements. Rebutting that charge, English said that up to the time when he resigned, all the reimbursement vouchers were up to date, and POCC had an oversight audit company, Wall St.-based BTQ Financials, monitoring the organization.

However, while previous efforts to locate Robeson for a response to the allegations were unsuccessful, unconfirmed reports suggest that he is now employed with the Harlem-based Minority Task Force on AIDS, dba FACES, as a program director for the 3MV program, the same program which the CDC said in its report on areas for improvement at POCC, that the program staff didn't have sign-in sheets for retreats, incentive logs were unavailable, and was similarly mismanaged.

Now, with less than two months to go, a source confirmed that while community organizations such as Gay Men's Health Crisis, GMAD, and FACES, have joined with party promoters, including Fred Pierce, James Saunders, and Calvin Smith, and have had two planning meetings for Jubilation, a form of Pride In The City, they have invited English, because of his previous experience with the event, to be a consultant.