Friday, November 30, 2007

Sex Scandal Clean-up Continues At American Red Cross

By Paul Clolery

The American Red Cross (ARC) is undertaking a forensic audit of money spent by deposed Chief Executive Officer Mark Everson to determine if any of the charity’s money was used inappropriately as he romanced a married female subordinate who is now reportedly pregnant.

Everson, whose salary was $500,000, will receive nothing from the organization in terms of termination pay, said Carrie Martin, an ARC spokesman. “There is no severance package. The board has offered Mr. Everson a contribution (under $10K) to assist with medical insurance costs,” Martin responded via email to questions from The NonProfit Times.

The organization just started the review, according to sources. “The board members are livid,” said one ARC staffer with direct knowledge of the situation. “If he spent a dime, or bought a dinner, they are going to want it back.”

According to Martin, “As a matter of due diligence, the Red Cross has been reviewing sources that may potentially unearth evidence of financial or other impropriety. No evidence to suggest this has been found. … Therefore, we cannot speculate as to what actions the organization would take if any were found.”

Everson, 53, married with two adopted children, resigned Nov. 27 during a conference call with the ARC board. He had been on the job just six months. A senior staff member brought the situation to the board nine days earlier. The investigation was not initiated because of a complaint from the female subordinate.

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