Lay Mission Helpers Association

“On April 28, 2014, the Organization's Executive Director identified irregularities while reviewing supporting documentation for an expense reimbursement requested by Charles Sebesta (Sebesta), the Fund Development Consultant for the Organization. An internal investigation revealed information that pointed to the suspicion that Sebesta and his assistant, Christine Rowe (Rowe) had misappropriated $177,942 from October 2013 to April 2014, by diverting funds payable to vendors. The results of the internal investigation were given to the Los Angeles Police Department and Sebesta and Rowe were arrested in May 2014. They were charged by the District Attorneys Office with grand theft, and this criminal case is outstanding. The Organization filed a civil lawsuit on June 27, 2014. A Settlement Agreement was executed on September 8, 2014 in favor of the Organization providing for the recovery of damages, including costs in the amount of $869,074. By December 31, 2014 the award was paid in full to the organization. The organization has recorded misappropriation expense of $136,718 in 2014 ($41,224 was reported as part of this misappropriation on the organization's 2013 990).IN ADDITION TO PROSECUTING THE TWO PERPETRATORS TO THE FULLEST EXTENT OF THE LAW AS DESCRIBED ABOVE, MANAGMENT HAS RECEIVED CONSULTATION FROM THE ORGANIZATION'S AUDIT FIRM TO IMPROVE THEIR ACCOUNTING PROCEEDURES AND INTERNAL CONTROLS IN AN EFFORT TO REDUCE THE RISK OF FUTURE MISAPPROPRIATIONS AND HAVE IMMEDIATELY IMPLEMENTED THEIR RECOMMENDATIONS.”

“the Form 990 was provided to the entire board for review prior to finalizing and filing the return.”

“Form 990 part vi section b-12c annual reaffirmation by all board members that no conflict of interest exists sec c. Disclosure if requested the executive director will provide a copy of the whitstle blower and conflict of interest policy. If past years form 990 requested - provide or direct to guidstar.”