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Financial experts fight embezzlement

January 13, 2003

MSU Controller David Brower says he is ready to join the fight to rebuild the United Way's reputation while the local chapter attempts to recover nearly $1 million in missing money.

Brower was appointed by the Capital Area United Way blue-ribbon panel of experts which will analyze the chapter's financial safeguards.

The purpose of the panel is to assure the public the financial controls are safe after nearly $1 million was allegedly embezzled from the organization, chapter spokesman Mark Holoweiko said.

"The outside panel is there to confirm it's as bulletproof as it can be at this point," he said.

Holoweiko said the board of directors picked Brower as well as two other financial experts - Mark Hooper, a partner at Andrews, Hooper & Pavlik PLC and Robert Carr, executive vice president at Capitol Bancorp Ltd. for their expertise and independence from the chapter.

"We are reviewing recommended changes and procedures to further implement internal controls," Brower said. The panel is expected to issue a report at the Jan. 21 board meeting.

Brower said he likes the organization's umbrella concept that allows MSU staff and employees to donate to different charitable causes through the United Way. "The concept is important for the community," he said.

The chapter is a charitable organization that helps 120,000 people a year.

MSU employees donated about $660,000 to the chapter this year.

The chapter discovered hundreds of checks missing in December, totaling about $900,000, which they suspect former vice president of finance Jacquelyn Allen-MacGregor of embezzling.

Allen-MacGregor, of Manchester, has not been charged with a crime, but a temporary restraining order from an Ingham County Circuit judge froze her assets.

"Everyone is investigating externally and internally and is pushing ahead," Holoweiko said of the investigation which began in early December.

The chapter's board of directors met last week to reaffirm its three primary objectives - recovering the funds, assuring prosecution of the person or people responsible and to ensure "nothing like this can ever happen again," he said.

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