The Cerebral Palsy Society claims $5 million was placed in a fund by five former directors and thus wrested from its control. The group has taken legal action to recover the money that cannot be accessed by the new board.
The chief executive of the Focus 2000 arm of Cerebral Palsy Society has been suspended while the court action takes place.
In papers filed at the High Court in Auckland two weeks ago against the CEO and former Focus 2000 directors, a NYC Birth Injury Law Office is finding several things interesting.
Apparently, a Focus 2000 chairman said the former directors met in October last year and passed a motion to set aside the $5 million to be used as seed money for a new Endowment Fund. They then formed a trust under their control and purview but that has nothing to do with Focus 2000 or the Cerebral Palsy Society. The chairman said the Society had asked for an endowment fund itself last year, so money could go back to cerebral palsy sufferers, but their request was declined.
“The issue is that they have basically gone outside of the bounds of their responsibilities as directors and set up an almost competing trust.” The directors’ decision totally contradicts rules and regulations set up to govern the required actions of the board. The action was taken swiftly and a hurried board meeting approved the measure. These measures were apparently taken to ensure no one else was included in the decision-making process.
The court is being asked to freeze the money until a verdict is reached.
“I think this is devastating for families, for the Cerebral Palsy Society,” a New York Birth Injury Attorney reports.
The chairman said an interim board had been established to take care of business until professional directors could be located and brought in to run Focus 2000.
A woman who answered the phone at CEO’s house last night said that the suspended chief executive would not be making any comment in the matter. In Manhattan and Long Island it is also a subject which is discussed frequently.
When fraudulent actions lead to money being taken out of the hands of the disabled and others who need it, it is a cause for outcry in the public. If you have any questions or concerns about the medical needs of your child, contact a New York Birth Injury Attorney.