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Local health provider halts operations to investigate embezzlement claim

10:29 PM PDT on Tuesday, May 13, 2008

By BERNARD CHOI / KING 5 News

SEATTLE – A Seattle non-profit that provides health care services for women is immediately halting all services after its executive director was accused of embezzlement.

According to a statement issued by the board of Verbena Health, "this action is being taken to safeguard the integrity and future of the health care programs offered by Verbena until a thorough investigation of the allegations of financial mismanagement is completed."

Verbena Health, with offices on Capitol Hill, claimed on its Web site it is dedicated to "building vibrant communities for lesbians, bisexual and queer women and transgender individuals through health advocacy, education, support services and access of care."

On Saturday, board members filed a police report claiming they had uncovered evidence showing its executive director had been misusing company accounts, including questionable purchases at Caesars Palace in Las Vegas.

A spokesperson for Verbena Health declined to answer any questions related to the alleged embezzlement. When asked the amount of money involved or the extent of the theft, board member David Haack said, "We just really don't know."

According to the group's IRS Form 990 from 2006, the last year available online, it had annual revenues of $416,000, the bulk of which came from gifts, grants and contributions. The non-profit had expenses of $356,000, for programs like cancer support groups, health workshops and tobacco prevention work. The executive director who joined the group midway through 2006 was listed as having earned $33,750 for that year.

Board member Haack says the group plans on sending out a more detailed letter explaining the situation to donors in the coming days. "The board, the staff, we are all very sad about the situation," Haack said.

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