Statement on Final Verdict in Embezzlement Case
The LGBT Center of Raleigh announces the conclusion of the legal proceedings regarding the embezzlement case that has deeply impacted our organization and the community we serve. After a thorough and comprehensive judicial review, the final verdict has been delivered, holding former Executive Director, Lindsey Lughes, accountable for her actions. As a part of the verdict, all monies will be returned to our organization giving us the ability to move forward and ensure our supporters that we have taken all measures to responsibly manage donations.
The LGBT Center of Raleigh is dedicated to supporting and advocating for the LGBTQ+ community of Raleigh, Wake County, and beyond. For over 15 years, we have worked hard to fulfill our mission, making a difference in the lives of historically underrepresented youth, families and adults. The embezzlement of funds meant for our programs, services, and community center operations threatened to undermine our ability to fulfill this mission and jeopardized the trust and confidence of our supporters.
Over the last few years, we have taken decisive action to strengthen our financial controls, enhance transparency measures, and rebuild trust within our organization and the community. We have a strong, dedicated staff and supportive Board of Trustees. While the road to rebuilding will continue to be challenging, we are unwavering in our resolve to emerge stronger and more vigilant than ever before.
The LGBT Center of Raleigh would like to express our sincere gratitude to all those who have supported us throughout this difficult time, including our dedicated staff, volunteers, donors, and community partners. We are especially grateful for the Womble Bond Dickinson law firm for their time and energy walking us through this process from start to finish. As we move forward, the LGBT Center of Raleigh remains steadfast in our commitment to transparency, accountability, and integrity. We will continue to uphold the values that define us and to work tirelessly to make a positive impact in the lives of those we serve.
FAQ
What was the cause of the legal proceedings?
In 2021, the previous Executive Director was let go after unusual financial activity in the nonprofit’s finances were discovered. A verdict was reached in the case this month that included full restitution to the Center.
What steps has the Center taken to prevent this in the future?
Since the discovery of this unusual financial activity, the Center has implemented stricter internal controls including the formation of a finance committee with two Board of Trustees members and having a certified public accountant review its finances. These will be key in maintaining strong financials, enhancing transparency measures, ensuring that donations are managed responsibly, and rebuilding trust within our organization and the community.
Did this affect the Center’s ability to perform its vital services?
The embezzlement of funds meant that the Center was forced to make staff reductions and pause some services and programs. However, the Center has been able to maintain its commitment to the mission by still providing some support to the community it serves.
Note from The LGBT Center of Raleigh:
The LGBT Center of Raleigh remains steadfast in our commitment to transparency, accountability, and integrity. We will continue to uphold the values that define us and to work tirelessly to make a positive impact in the lives of those we serve.