Q: Can a preschool director be charged with fraud for misusing scholarship funds intended for a low income student?
The director of a nonprofit preschool organization was given scholarship funds by a business sponsor intended for a low income student to pay their tuition. She, instead, kept these scholarships and used them for other purposes (the purposes she used them for have not been made known). She kept this a secret from the business who had donated the scholarship funds which ended up totalling about $3,000. Can she be charged with fraud and if so, how can she be reported and who is allowed to report her? This issue was made known to the Board (made up of volunteer parents), but they are not pursuing action due to their close friendships with the director.
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A:
Yes, a preschool director who misuses scholarship funds intended for a low-income student can potentially be charged with fraud in Missouri. This situation may constitute fraud because:
1. The director was entrusted with the scholarship funds for a specific purpose (to pay the tuition of a low-income student).
2. The director knowingly and intentionally used the funds for a different, undisclosed purpose.
3. The director kept this misuse of funds a secret from the business sponsor who donated the money.
In Missouri, this could potentially be prosecuted under the state's stealing by deceit statute (Section 570.030 RSMo). The severity of the charges would depend on the total value of the misappropriated funds.
To report this potential fraud, consider the following steps:
1. Contact the Missouri Attorney General's Consumer Protection Division, which investigates and prosecutes cases of fraud.
2. File a complaint with the Missouri Department of Social Services, as they oversee child care licensing and regulation.
3. Report the issue to local law enforcement, such as the police department or sheriff's office.
Anyone with knowledge of the alleged fraud can report it, including parents, staff members, or other individuals associated with the preschool. If the Board is unwilling to take action due to personal relationships, it is especially important for concerned individuals to report the matter to the appropriate authorities.
It's essential to gather as much evidence as possible, such as financial records, communications, and witness statements, to support the allegation of fraud when making a report.
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