DAVID — The David School is the target of a investigation into money paid to Director Daniel Greene, and the state Attorney General’s Office filed a petition Thursday in Floyd Circuit Court, seeking to force the school to turn over documents related to Greene’s compensation.
The filing questions compensation arrangements between Greene and the school, alleging that Greene is believed to have used the school’s funds for his own profit.
“Upon information and believe, for a period beeginning no later than 1 October 2005, Defendant Daniel Greene, during his service as director and administrator of The David School, utilized his positions to unlawfully divert, convert or otherwise misappropriate charitable assets of The David School for his own use or private benefit, including but not limited [to] paying himself twice for two pay periods without any authority from the Board of Directors,” the petition reads.
According to the petition, the AG’s office issued a Civil Investigatory Demand to the school on Feb. 29, seeking a number of documents related to money Greene has received from the school. The material requested by the AG’s office includes:
- “All board of directors materials, including but not limited to minutes, agendas, material districbuted at the meetings, presentation materials, etc., for the period beginning 1 July 2007 to and including the date of this letter.
- “Any contract or agreement between the nonprofit and Mr. Greene that is or was in effect at any time from 1 July 2007 to and including the date of this letter.
- “All financial records of the nonprofit relevant to the preparation of the 2008 and 2009 Internal Revenue Service Form 990s, including but not limited to the nonprofit’s general journal, all subsidiary journals, bank statements, cancelled checks, work-papers or schedules, and financial reports or statements (inluding the trial balances, balance sheets, income statements, cash flow statements) for period beginning 1 July 2007 to and including the date of this letter.
- “All board of directors material regarding Mr. Daniel J. Greene’s compensation (as that term is defined for purposes of completing Sub-part c of Part IV of the Internal Revenue Service’s Form 990-EZ) by The David School Inc., for period from 1 January 2000 to the present.
- “All board of directors material regarding any transactions between The David School, Inc., and Mr. Daniel J. Greene involving any disbursements, payments, transfers of property, financial transactions, or other monetary or financial benefit for any purpose other than Mr. Greene’s compensation (as that term is defined in the preceding question). (This request covers the period from 1 January 2000 to the present.)”
On March 9, the school sent copies of Greene’s W2s from 2006 to 2011, a copy of a deferred compensation check to Greene dated August 11, 2006, bank statements dated from 2009 to 2011 and a copy of the school’s 2009 tax forms. Along with those documents was a letter from Greene, explaining he would be going to the school the following weekend and would send the remaining materials.
On March 22, Greene sent an email to the AG’s office, saying, “We have been making copies and will get to your office as soon as possible.”
Despite those assurances, the petition says that no further documents have been forthcoming.
The petition goes on to say that the AG’s office has “a concern that Defendant, The David School, may not be able to pay its debts as they become due in the usual course of affairs,” and notes the school filed its 2009 IRS 990 form late and has failed to file an IRS 990 form for 2010.
The petition seeks to force the school to comply with all requests in the Civil Investigatory Demand.
Attempts to reach Greene and the school have thus far been unsuccessful.