"Founder, owner and CEO of a Cincinnati nonprofit......" Huh, owner? That''s just plain wrong. There is only onw "surrogate" owner of a nonprofit and that is the Board of Directors. And to top it off, this was a bad irresponsible "owner" who did not pay payroll taxes for his employees. Bad, bad, bad. And as you would come to expect this question: where was the board?? Obviously not doing their fiduciary duty in paying attention that the taxes, paid by the CEO on their behalf mind you! This situation is just so wrong and not just about the CEO but the Board. Both have failed grossly and then of course there's the employees - what happens to them? Boards, don't let this happen to you. Ask questions. At least make sure there's an audit which should be the place this hanky panky is found out.
From Cincinnati.com:
Feds: Nonprofit CEO enriched himself by not paying certain taxes
The founder, owner and CEO of a Cincinnati nonprofit who prosecutors said enriched himself at the expense of the IRS has pleaded guilty to federal charges.
Court documents say Barry Rene Isaacs’ failure to pay certain taxes cost the government about $360,000.
Isaacs pleaded guilty Wednesday in U.S. District Court in Cincinnati to an employment tax violation charge and identity theft, records show.
Isaacs’ nonprofit, Hope 4 Change, provided housing and care for adults with developmental disabilities, drug addiction problems and mental disorders, officials said.
According to prosecutors, Isaacs withheld taxes from employees’ paychecks – between 120 and 180 of them – but did not pay that money to the IRS.
Between 2013 and 2014, according to prosecutors, Hope 4 Change received $3.1 million from the Ohio Department of Development Disabilities to provide services to its clients.
“The defendant committed financial crimes involving fraud or deceit designed to enrich himself at the expense of the IRS and others,” prosecutors said in documents arguing that he should not be released on bond. “He used the identity of other persons to evade responsibility for and obstruct the investigation.”
Officials said Isaacs spent thousands of dollars on clothing, massages, beauty care, travel and personal vehicles for him and his family.
Isaacs’ ex-wife, Teela Gilbert, also was charged in connection with the case with obstruction of justice. Gilbert was the nonprofit's vice president, “student affairs” director and office manager, officials said. When Isaacs was arrested in January 2020, he was with Gilbert in Houston, Texas, documents say, registered at a hotel under a fake name.
An Ohio address Isaacs provided to investigators was found “to be abandoned,” documents say.
Isaacs will continue to be held in custody until he is sentenced, court records say. A sentencing date has not been set.