Follow us on

Sunday, May 19, 2013 | 4:06 p.m.

Powered by The Atlanta Journal-Constitution

Web Search by YAHOO!
 

Posted: 12:01 p.m. Tuesday, Nov. 27, 2012

Former employee accused of stealing more than $1.4 million from Woodruff Arts Center

Related

Woodruff arts center photo
Kent D. Johnson, kdjohnson@ajc.com
Woodruff Art Center officials Larry Gellerstedt, board chairman, and Virginia Hepner, president and CEO, speak in a press conference on Nov. 27, 2012.

By Christian Boone

Staff

Woodruff Arts Center officials said Tuesday that a former employee submitted $1.438 million in fraudulent invoices over the last five years.

They didn’t find out about it until the unnamed “mid-level” administrator, employed since 2004, left the center at the end of October for reasons unrelated to the alleged embezzlement, said Woodruff President and CEO Virginia Hepner.

A few days after his departure, some “suspicious” invoices were brought to Hepner’s attention and an internal investigation was conducted. It quickly became apparent that the departed administrator had bilked the arts center out of a substantial amount of money, officials said at a Tuesday morning news conference.

“This individual was able to find a weakness in our interior controls,” said Woodruff Board Chair Larry Gellerstedt. “No one here knew any of this was going on.”

According to Hepner, the alleged thief acknowledged culpability when confronted with evidence uncovered by the arts center’s internal investigation.

The suspect has not been charged but Hepner said she has alerted the U.S. Attorney’s Office and plans to share findings with prosecutors.

In the meantime, officials are seeking to reassure donors their money is being used responsibly. While the embezzled funds account for just a fraction of the $100 million in revenue Woodruff takes in annually, the culprit easily exploited what were gaping holes in the arts center’s oversight processes, officials said.

“The first way to re-establish credibility is to let folks know this happened,” Gellerstedt said. “We take it very seriously, and we’re on it.”

Hepner said Woodruff has, in recent weeks, added outside auditors, creating a new layer of oversight.

“We think we have very good people and processes in place now,” she said.

Return for updates.

More News

 

Today on MyAJC.com

Highway rules

Your commute: Rules for new highway lanes could breed confusion

The lanes are designed to offer choice and efficiency for metro drivers, but the AJC reports they could also confuse drivers and cause accidents.

Minor leagues cast an allure of their own

Things to do: 3 minor league stadiums close to Atlanta offer family fun

Today's Go Guide takes you to the home fields for the Gwinnett Braves, Rome Braves and Chattanooga Lookouts -- and offers ideas on how to enjoy them.

Jeff Schultz

Jeff Schultz: A few legitimate concerns about the Braves

Sports columnist Jeff Schultz admits that it's still early, but he points to some hiccups for the home team.

Mark Arum Weekend Construction outlook

Updated every Friday, Mark Arum tells us where we can find construction, events and anything else to slow us down on the roads this weekend.