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View Full Version : Advice needed...real personal dilemma here


kimmers318
10-09-2006, 07:06 AM
After thinking about things WAY too much the last few days, I realize that I need to get something off my chest and seek others opinions on some moral, ethical and legal issues that have been dropped into my lap and I am being forced to deal with.
As some of you know, I am very involved in my local veteran club. I am the vice president/membership chairperson for our auxiliary unit, and also a part of the riders club. I have been the vice president for almost 10 years now, and although on occasion the responsibility can be heavy...it is a wonderful organization that does a lot of good, and I am proud to be a part of it. Most of my family has been involved in one way or another at some point. Approximately 5 years ago, our treasurer, a wonderful woman who had kept our financial books pristine for over 15 years was taken from us by cancer. Another lady took the treasurer position over temporarily and made such a mess of things that we took our books back and they were handed over to me. I straightened out all of the discrepancies and took care of all of our financial business for almost 2 years on top of the responsibilities I already had. 2 years ago another person was nominated to take over the treasurer position because I was really way too swamped to hold 2 offices, one being a dual office already. That person was my sister. I expressed my feelings to our officers on the nomination, withheld from the voting, and let it go at that. Although not as organized as I was, she still did an okay job with things, and the president and myself just picked up the slack to make sure deposits were made on time etc. My sister basically was just a bookkeeper needing to log all deposits/checks and balance it monthly with the statement, and report to us at our monthly meetings. We normally do not have meetings in the summer with so much else going on, and if any decisions need to be made myself and the president make phone calls to get authorization for expenditures and turn the receipts over to our treasurer, my sister. (Yes, I know, I keep repeating my sister....it is a big part of my dilemma and I feel the need to stress "my sister") A little background on my relationship with this sister might be in order to help everyone understand some things at this point. Her and I seldom see eye to eye....we don't agree on most things, and probably wouldn't even be friends if we weren't related. She is married to a man who is terminally ill with cirrhosis and hepatitis b, and he won't quit drinking to help his health. She is also an alcoholic. Several years back we had a falling out over another issue where she believed something another female said that was VERY derogatory to me, the falling out ended in a physical fight between the 2 of us, and not speaking to each other for 8 months. When we came to be friends again the motto was "blood is thicker than water", she had every right to be upset with me if what was said was true...but she should have come to ME first and dealt with me. There isn't a whole lot of respect for my sister because of her lifestyle, and how it affects my 13 yr old niece...but she has a right to choose to live her life and we agree to disagree, but the one thing that has come about from our rocky past and her actions is the fact that I won't even loan her so much as $20...if her family is hungry I will take her to the grocery store....but I won't give her $$$ because it will just be spent on alcohol. There is alot of that "unconditional" love because she is my sister....I can't stop loving her because I don't like her too much.
Last Friday morning I got a phone call from our auxiliary president that she had opened the bank statement when it came in the mail, which she always has done periodically, and is fully authorized to do so, and that there were some issues on the statement that she wanted me to look into. When I got to the club and was shown the statement it had 5 checks totally $1498 that had been written to my sister, in one months time, that we had not authorized nor signed. (our account requires 2 signatures on each check) The signatures were my name, and the presidents name...but they were not our signatures, they were forged. My sister was asked to bring the checkbook and ledger to the club immediately for an audit. I went to the bank to freeze the account and ask for a statement showing activity from the September statement up until that day...what it showed was a balance of $7.61. I then asked for a statement for July and August...on July 6th we had a balance of $2816. The first thing my sister accused me of was not sticking by family and helping her to keep the fact that she "borrowed" (her words) from our business account because she was out of work the month of August and had to do it to pay her bills. She has no concept of the fact that even if I wanted to keep it a secret I couldn't...I wasn't the one who discovered the issue. She said some really not nice things about me not helping family. She did finally bring the books to our president, who started trying to audit them this evening in the hopes of keeping me as far away from the situation as possible. She is not having much luck balancing it, although she has found 3 more checks totalling $652 written to my sister, and with our signatures forged. The club would like to keep all of this underwraps and give her a chance to pay back the $$$, but even if she can come up with such a large sum in the next 10 days (she claims she is waiting for a loan approval to pay us back) we cannot not report this to the other officers or we are just as guilty. Once it is reported, I am sure the information is liable to leak out and the rumors will fly. Already people are questioning the fact that I was at the club 3 times on Friday....behind closed doors with the president...and seen at the bank twice by another auxiliary member. It then came to light that she has written $700 in bad checks to the canteen at the club and has not yet tried to make good on what she calls a mistake. The most logical course of action is to file a report against her for the forgery..at that point the bank takes over, investigates the fraud and reimburses us our $$$ since they cashed checks that were illegally signed. But, that cannot be done without a police report. The president does not have a problem...even though she is a long time friend of my sister, following the legal course of action, our 2nd vice is a dear sweet lady who although won't have a problem with the legalities is not capable of auditing the checkbook to have all our Ps & Qs covered so to speak and to obtain the proof of just how much my sister stole. Our secretary just had major back surgery and is still bedridden. That leaves myself and the president. Technically, 2 people (or more) should participate in the audit, ensuring that no discrepancies are "overlooked" for friendship reasons, so the responsibility is back in my lap. I am really caught between a rock and a hard place here....already my mom has jumped my case wanting to know what was going on with my sister because of her erratic behavior lately and is pissed at me that I won't tell her what I do know. My father is terminally ill and not doing so well, and this is something that would break his heart to have to take to his grave. He is a very proud man who expects his children to behave in a manner that would not shame him or our family name. As much as I wish I didn't have to be a part of any of this, I feel obligated to at least do what I can to balance the books and document my findings in case the auxiliary does decide to pursue legal action. I feel that I have to do what is right, regardless of my personal feelings, if it was anyone else I would have already filed a police report. But, I am torn by the fact that my actions will destroy my sister and her family (which of course is my family), and she may even end up doing jail time. Depending on how the charges play out, she could very well lose her career...busdrivers don't get much work when they have had felony charges on them. The club wants to do everything they can to minimalize the damage to me, but the fact remains that MY signature was also forged...and if asked to testify to that fact, I cannot lie about it. If I refuse to testify to that not being my signature than it could be construed as I authorized my sisters personal loans from our business account...and I am just as guilty of theft.
Give me some feedback as to how you think I should proceed....if I don't do the audit, there is only one other person who can right now, and she is already lost. If I do do the audit, I am the bad man who sent her sister up the river. I have family obligations to stand by my family and help them in anyway I can...and have always done so, but I also have moral and ethical obligations to protect a non profit organization that I am the vice president of. Either way, I hope to keep my father from finding any of this out...he doesn't deserve to die knowing his daughter is a thief.

NorthernBoy
10-09-2006, 09:52 PM
Well this is what I think.

1) can you hire an external accounting agency to audit the books so you are not tied to that part?

2) Honesty vs Loyalty. Its sounds to me like your sister needs some help with her drinking problem. Are you doing her a favor by covering this up? May be it is time that she stands up and takes responability. Being true to yourself untimately is more important in my book. Family members can make their own bad choices. You do have a responsability to her child to make sure she understands that this behavior is unacceptable. You don't want the child hearing about it and seeing no consequences or she may follow the footsteps of her mother.

3) If your sister is prosecuted she may have the choice to attend a treatment facility with a stayed sentence if she stays sober. You may also havwe an oppertunity to take the child in during this time and let her have a stabile home for awhile.

Answer is clear to me kimmers but I understand the difficult choice you have. Your "true" friends and family will support either decision you make. But remember, you are the one who has to respond to behavior here. You did not make your sister steal the money. She did that all by herself.

Lady Hobbs
10-09-2006, 11:19 PM
Oh Kimmers.....I feel so bad for your situation.

I was manager of the Eagles club in this area for several years and did the books, took care of the bills, deposits, memberships, etc. and a huge trust is put on our heads. It meant a lot to me that they trusted me and in turn I would never be disloyal to them. I did the books myself and after 3 months took the books in to an outside auditor in order that I always had this "second" auditor to back up these records. I assume that you at least have in-house auditors that sit down and go over receipts, etc, now and then? If not, then this needs to be done to protect the safety of the businesses assests.

I am also well aware of the way alcoholics are. Sorry to say, they can not be trusted due to their illness. Apparently it was easy enough for your sister to get away with it the first time so the second time was made easy for her. One of the ways to deal with alcoholism is not be be "an enabler." Your sister can not be allowed to have this covered up, swept under the carpet or simply "go away" from her. She broke the law, violated the rules of the establishment and blackened your good name. She is an adult and must face the responsibilities of being an adult.

I believe the membership should be called in for a special meeting and all events gone over. You should be able to have your say and explain the events so that everyone can understand that you, as well, do not condone her behavior and had no part of it.

This must be reported to the authorities, of course, and your sister must be prosecuted. She will not learn from this unless she is.

This hasn't a thing to do with you. I know you feel terrible about her being your sister but you can not be responsible for her actions. Possibly a wake up call is just what she needs to straighten herself out.

Tornado
10-10-2006, 01:54 AM
The only advice that im going to try and offer you, is this:

I think you are looking at going the legal route the wrong way. "What kind of person sends her sister to jail and ruines their family". I think you should be looking at it like this: What are the consequences of letting her get away with this, and not face her actions.

Sometimes, A LOT of good can come out of doing the Hard thing, and right thing, which would be to take legal action. You will be helping her more by letting her learn that she has to be responsible, than you will letting her get away with something like this, and continue her irresponsible life. Your sister needs to learn responsibilty, and needs to grow up. Allowing her to come to terms with her own actions is one big way that will happen in my opinion.

Ive heard of stories where loved ones had to make choices like this, and decided to take the legal action against their loved one, and later down the road, that loved one comes back and will actually say Thank you, Thank you for forcing me to grow up, and thank you for loving me enough, and caring enough about me, to do what was right. Sometimes taking the hard road, and perhaps letting your sister go sit in jail for a while, and let her think about her life, can change her life for the better.

Dont think that you are some bad person for taking legal action. You are actually hurting her if you dont take legal action. She will continue to be irresponsible, until something or someone gets her attention. I would personally take the legal action, and simply be as honest as you can to your organization. You can do nothing more than your best, if people want to talk and spread rumors outside of that, then thats not your problem, you cant help whats out of your control. You will be justified at the end of the day however, if you do the right thing, and remain honest.

I know im probably a bit young to try and give advice, but there is my 2 cents, you are entitled to a refund :)

Lady Hobbs
10-10-2006, 03:31 AM
You may be young but your advise is from a wise person. My daughter got into drugs and I was the one that called the police and had her put in jail. She was there for 6 months and from there to rehab for 6 more.

She told me "thank you mom. You saved my life."

kimmers318
10-10-2006, 01:19 PM
Well....I feel that I have received some good advice here and it does make me feel better. We can't hire an outside auditor at this time because she literally broke us...current bank balance is $7.61 plus the just over $100 I deposited on Friday just in case, because although the bank is frozen the lady at the bank wasn't sure if something else tries to come thru if we will get a charge for it. Our president tried to balance the books and didn't get very far so I worked on it last night starting from when I gave her the books because her recent "thefts" have not been recorded...so there may be other checks we will still find.
A police report was made yesterday by our president holding off on formal charges until we finish the audit and give her a chance to respond. The club itself has given her until the 23rd to make good on her bad checks written to the canteen out of her personal accounts and then plan on going to small claims court with it. She has made NO attempt to contact our president on this issue so I am afraid it is going to go alot further legally.
Since this is such an internal issue here I am glad I asked for your guys' advice....the only people that know so far will definitely not hold anything against me for it, my biggest fear has been how my family will react, but those of you that responded have made me feel better with my own decision to not try to protect her. I am having enough trouble sleeping as it is and couldn't begin to imagine what I would feel like if I chose to try to keep her out of trouble on such a big issue. That she would do this still boggles my mind!
Well, off to get ready for work.

Lady Hobbs
10-10-2006, 04:10 PM
What in the world was she thinking? How did she think this would never be found out? It's not like these organizations have tons of money. What makes it bad is these organizations of which you speak do so much good for others and she used that money for her own gratification. She took money from more than just your organization but from others who would have benefited greatly from it.

You may have to go thru that checkbook and make sure checks in the back of the book aren't missing as well. Perhaps even close the account and open another. She may still be in possession of checks. What a mess, but indeed, HER mess created by her own doing.

You'll need to tell the family soon before they hear it thru the grapevine.

William
10-10-2006, 05:50 PM
Hi Kimmers. I am sorry about your problem and that I couldn't be here to give you my view before you made your choise.

I can only say That I think you made the right choice regardless of whether I look at the situation as a laywer or a person. You did what you could to minimize the damage to your family/your sister and to everyone else.

kimmers318
10-11-2006, 12:48 PM
Thanks again for so much good advice...I am so glad there are people who agree with me that aren't personally involved. My sister did finally contact the president yesterday and said she will meet with her Thursday to discuss resolving this without formal charges. She also said that she is seeing a therapist tomorrow for depression. I personally feel that although that may be true, knowing my sister, she is using that as a cop out for what she has to deal with right now. She doesn't have any medical insurance at this time and I doubt she is planning on paying for it herself. Especially after finding out from another driver yesterday that she has been missing ALOT of work lately....with her husband out of work that is not a good idea.
And yes, Hobbs, she is hurting other people, first on the list will be the children/grandchildren of our members. Every year the auxiliary hosts a Christmas party for the children and we get each of them a small gift to open from Santa, who is played by one of our SAL members. We are going to need to come up with a plan REAL quick to make some $$$ so that we don't have to disappoint the children.
As for informing the family....I have tossed around the idea since yesterday, that once I finish the audit, have made copies of all discrepancies for proof (and then we have to order the actual checks from the bank, not just the images) I will ask my mother to meet with me and I will simply show her the information and let her come to her own conclusions. I don't want her to start hearing rumors which may be blown way out of proportion about her daughter. Granted, this sister, of us 3, has always been the one to get into trouble, financially and otherwise, but still, it is her daughter and she probably should have the information first hand, rather than from vicious rumor mills.
I started the audit from 9/04 when I last had the books, and have gotten as far as 2-05 because although she wasn't doing anything wrong at the time, she was a lousy bookkeeper. I hope to finish it off today since it is my day off.
Thanks for being there everyone!