Last updated: July 18. 2013 6:51PM - 301 Views
Ralph B. Davis
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PRESTONSBURG — The Floyd County Times has learned that the Attorney General’s Office will seek a state takeover of the David School, during a hearing next week in Floyd Circuit Court.

Prestonsburg attorney Ned Pillersdorf said he has been in close communication with the AG’s office about the investigation into the David School and was told this week that the state would seek to oust director Danny Greene and appoint an emergency school board to operate the school. Pillersdorf said he has been asked to serve on that board.

The state has been investigating payments that the school made to Greene over the last 10 years, recently filing a motion seeking to force the school to comply with requests related to that investigation. In the motion, the state pointed to two instances in which Greene was paid twice in the same pay period.

Pillersdorf said the AG’s office is filing a pleading explaining its reasons for the takeover request and a hearing will be held next Thursday on the matter. Personnel in the circuit clerk’s office said Thursday, however, that they had not yet received a copy of the pleading.

“I sincerely believe the attorney general’s office’s efforts are the last and best hope of rescuing the school from the economic situation that has arisen under Danny Greene,” Pillersdorf said Thursday.

Pillersdorf said Thursday that the David School does not have a “functioning board of directors,” a lapse that could serve as enough of a basis for a takeover. However, the allegations of misappropriated funds are also expected to factor strongly in the request.

He also said Greene must be “excised” from the school in order to right the ship. He said he knows of several past donors who will no longer contribute to the school, simply due to Greene’s leadership of it.

“Danny Greene has gone from being the best friend that the school could ever have, to being the greatest threat to its continued existence,” Pillersdorf said.

Pillersdorf said that nonprofit groups that face such allegations are often liquidated to cover their debts and then dissolved. However, he said his conversations with the AG’s office lead him to believe that is not the case in this instance, and that he believes the state has an interest in seeing the school continue and recover from its current troubles.

“Usually, what they do is liquidate the nonprofit and put it to sleep,” Pillersdorf said. “What they are doing here is a resuscitation.”

Messages left for Greene at the school and on his personal cell phone voicemail, seeking comment on the developments regarding the case, were not returned.

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