Embezzlement: Is It Our Dirty Secret? (a five-year update)

Five years ago I posted an essay about embezzlement at history organizations while I was on AASLH Council and in the midst of recovering from the financial fraud perpetrated by its chief financial officer.  History News recently published my updated version and included a sidebar by John Dichtl to describe the fraud at AASLH.  When it occurred, AASLH wanted to be open and transparent about the situation and use it to help others, and yet, we often found ourselves silent and frustrated because it could have jeopardized the criminal investigation and lawsuits.  Now that the CFO has been sentenced, AASLH can discuss it more openly (although some aspects are covered by confidentiality agreements). Please share this article with your colleagues to help them tighten their financial controls and reduce the chances of embezzlement at their organizations.

By the way, this issue of History News has lots of good articles for historic sites, including:

  • “The Many Voices of a Historic House” by Jane Mitchell Eliasof (about the effort reinterpret the Crane House in Montclair, New Jersey as an African American YWCA from 1920 to 1965)
  • “Like a Phoenix: Opportunities in the Aftermath of Disaster” by Samantha Engel (about the fire that occurred during a construction project at the Whaley Historic House Museum in Flint, Michigan)
  • “A Please Touch Historic House Tour” by Christine Ermenc, Christina Vida, and Scott Wands (a case study of an award-winning program at the Strong-Howard House in Windsor, Connecticut).

History News is one of the best benefits of membership in AASLH.  Along with a quarterly copy in the mail, they recently added online access through JStor and send members a pdf version in advance via email. I’ve been a member for nearly 40 years and if you want to find consistently useful ideas for managing your historic site or house museum, there’s no better place than AASLH.

One thought on “Embezzlement: Is It Our Dirty Secret? (a five-year update)

  1. Michelle Zupan

    The Director at my previous museum was embezzling from the institution. I discovered it when she went on emergency sick leave and I had to figure out payroll. One red flag that I will forever be aware of was that she kept a TIGHT fist on the accounting and called from her hospital bed to warn me away from going into the accounting software to write the paychecks — it would be “too complicated.” The other red flag was that she never taught the Board Treasurers how to read the P&L sheets. After I turned her in the City opted not to prosecute because the 89 year old Board Treasurer would have gone to jail too. So, my advice, be watchful and do NOT be afraid to say something. Most theft is internal

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