I am always fascinated by the ability of a nonprofit exec to pull off multiple-years of embezzlement. The reasons are irrelevant. The success amazing. And the board - clearly not reviewing finance reports or clearly not questioning audits (presumably had one for a $22 million budget). The writing is not invisible - even minimally savvy board members or finance committee members or the finance department should be able to "smell" that all is not right. And yet, as demonstrated below, the board failed the smell test. Were I to judge, yes, just like with prostitution or the sale of drugs, the male, and the buyer is equally responsible. Consequences for the Board should be given at minimum by the funders if not others. This organization should basically be taken away from this board.
The former head of a Long Island autism charity will spend 33 months in federal prison after embezzling nearly $1 million from the non-profit to pay for Broadway tickets, cosmetic surgery and a down payment on her home.
Wafa Abboud, 55, was sentenced in Brooklyn Federal Court Wednesday, after a jury found her guilty of embezzling, bank fraud and money laundering in 2019.
From January 2011 to May 2016, Abboud worked as the executive director of Human First, Inc. which has offices in New York City and Long Island, and provides social services for autistic children and young adults.
Despite a passionate statement where she maintained her innocence, said her life was ruined, and talked about her dedication to others, Judge Edward Korman ruled that she should serve time in custody, and gave her the same sentence as a co-defendant who pleaded guilty in the scheme.
“I lost everything. I lost my friends, my community, my dignity, my reputation and my job,” she said. “I didn’t get the chance to talk about who I am and what I did for people.”
Abboud founded Human First in 2001, and built it into a $22 million agency, she said. “This twist of the character, this is not who I am,” she maintained. “I didn’t do this. This is just a misunderstanding.”
Korman said he was factoring in Abboud’s lifetime of good deeds and volunteerism, and that she was still supporting her youngest child, her son, as he finishes high school.
Still, he said, he felt a sentence with prison time was appropriate because of the nature of the crime, and as a general deterrent to others.
“One of the problems in a case like this is I can’t ask you why you did it,” Korman said. “The jury found you guilty. I accept their verdict. I have to impose a verdict on the assumption that the verdict was correct.”
Assistant U.S. Attorney Turner Buford said Abboud embezzled for years, despite making a six-figure salary as the executive director.
“It was a crime that committed entirely out of choice,” he said.
Abboud conspired with consultant Marcelle Bailey and paid her company$16,000 a month in fees for years, prosecutors established during the two-week trial. Bailey a “substantial portion” of that money was funneled back into accounts Abboud controlled — and she used that cash for wire transfers, cosmetic surgeries, a trip to Disneyland, tickets to the Broadway show “Newsies,” and visits to luxury spas and high-end beauty salons.
Bailey pleaded guilty in 2017, and was sentenced to 33 months in 2021.
In another scam, Abboud approved jacked-up construction invoices from co-conspirator Rami Taha. She then had him funnel the cash back to her, using the money for the down payment on her $1.3 million Merrick home and to pay for renovations to the nine-bedroom residence.
Taha pleaded guilty to embezzling in 2019 and awaits sentencing.
Abboud also awarded herself an annual salary of $479,000 without telling the charity’s board of directors, prosecutors said.
Abboud is required to surrender herself on Sept. 29, enough time to see her son finish high school.