Kappa Alpha Psi Official Fired After Embezzling $1 Million From The Fraternity
No charges have been filed.
January 24, 2019 at 6:15 pm
Kappa Alpha Psi’s finance director was fired after embezzling $1 million from the organization’s bank accounts.
Curtis Anderson handled the fraternity’s finances for 20 years until he was ousted on Christmas Eve, reports Philadelphia Magazine. Anderson’s scheme was uncovered when Santander Bank contacted fraternity executive director John Burrell about suspicious account activity.
Burrell visited the bank to handle the matter and later brought Kappa Alpha Psi President Thomas Battles back for a second visit. While Battles and Burrell were speaking to Santander staff, Anderson strolled into the bank.
When he saw the pair, Anderson quickly left the branch. He only came back when Battles called him on his cellphone.
According to court documents, Anderson made checks out to himself and cashed them using fraternity bank accounts. He would then deposit the funds into two of his bank accounts or one he shares with his wife.
He stole about $400,000 from the Santander account and another $978,000 from a Wells Fargo account.
Anderson admitted he used the money to enable his gambling and drinking addictions.
Kappa Alpha Psi has a two-signature policy for checks, and Anderson was not an authorized official. He got around the rule by using stamps of other Kappa officials.
Several of the checks appeared to be signed by former executive director Spencer Bruce, who left the position in May 2018, according to The Philadelphia Tribune.
Anderson has not been arrested, and no charges were filed. A grand jury has been assembled to examine the case. Kappa Alpha Psi has not commented on the matter.
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