Ralph B. DavisManaging Editor
December 18, 2012
PRESTONSBURG — Four months after the state was successful in ousting the David School’s founding director over allegations of questionable spending, the school is taking him back to court in an attempt to force him to repay the school for tax penalties and questionable credit card expenditures.
Attorney Michael Endicott filed a motion on behalf of the David School, seeking to force former director Danny Greene to comply with certain obligations.
According to an affidavit by Ned Pillersdorf, who serves as vice chairman of the school’s board, “The initial allegations made by the Attorney General’s Office, which the Floyd Circuit found to be persuasive, only scratch the surface of the intentional and reckless mismanagement of the school. The affiant has become aware of three areas of concern in which the actions of former executive director Danny Greene continue to threaten the economic stability of The David School.”
According to Pillersdorf, Greene subjected the school to a tax bill of $33,919.33 by failing to pay withholding tax to the government, even after it had been deducted from employee paychecks, and failing to file required forms.
“During the same time frame while these mandatory obligations were not being paid, it appears that Danny Greene paid his own health insurance in the amount of approximately $27,000 per year and paid other expenses that directly benefited him, his wife (Ann Greene) and others,” Pillersdorf said in the affidavit.
Pillersdorf also calls into question school credit card account with a bill of $2,324.74, which he says appears to consist mostly of charges unrelated to the school.
“Most of the charges on the Bank of America credit card do not appear to be school related, although they were incurred at a time that Danny Greene was operating the school,” Pillersdorf says in the affidavit. “For example, there are charges to an adult sex store in Arkansas, various rental car charges, and other charges unrelated to the operations of the David School.”
Copies of credit card bills attached to the motion and affidavit show a single charge of $32.35 to Adult World Factory Outlet, in Widener, Ark.
The final item in the motion concerns a piece of property the school bought from Greene in 2005, at a price of $157,000, consisting of two tracts of land. According to Pillersdorf, due to what appears to be an error, Greene and his wife only signed one of the deeds, leaving ownership of the other piece of land in question. The motion asks for Greene and his wife to sign a quitclaim deed for the other piece of land to resolve the issue.
The motion will be heard Friday morning in Floyd Circuit Court.