WCIV-TV: Crisis Ministries CFO charged with embezzlement
CHARLESTON, S.C. (WCIV) — The chief financial officer for Crisis Ministries has been charged with embezzlement, according to police records.
Carol Libby was accused Monday of taking more than $11,000 from the nonprofit and funneling it into her personal account. All of the checks were made out to other businesses, not the employee, according to the report.
According to court documents, the embezzlement dates back to December 2011. Documents alleged Libby stole more than $96,000 from Crisis Ministries.
“It’s hard. You think you know someone and then you find out you really don’t,” Crisis Ministries CEO Stacey Denaux said.
Police charged Libby with breach of trust with fraudulent intent Thursday. They said she embezzled almost $100,000 between December 2011 and June 3.
Denaux said Crisis Ministries has a board of directors that look over finances every month and an audit is done annually.
“There are incredible oversights and internal controls in place. A smart person can outsmart another smart person,” Denaux said.
Libby worked for Crisis Ministries for about 10 years.
Denaux thanked supporters for their help over the last few days and assured them it would not affect Crisis Ministries’ commitment to help.
“This community believes it’s important we take care of people who may not be able to take care of themselves right now. So that’s what we’re latching on to,” she said.
Denaux said Crisis Ministries has insurance for employee dishonesty.
A judge set Libby’s bond at $25,000.
Her attorney said she was “shocked” and her family was in distress over the arrest.
Libby was suspended without pay, pending the investigation’s outcome.
In a statement released Tuesday, the organization said it is working closely with the City of Charleston Police Department.
“Crisis Ministries was deeply distressed to discover last Thursday via a call from their bank, Wells Fargo, that the organization had been the unknowing victim of an apparent embezzlement at the hands of a long time employee, Carol Libby, who served as chief financial officer for 10 years, without incident.”
The shelter has hired an outside law firm to dig through their records. According to spokesperson Elizabeth Boineau, Dixon Hughes Goodman, LLP is doing an “exhaustive investigation” and “will go back as far as they feel the need to go.”
Boineau also said the organization is working to engage an interim CFO/controller, an independent outside contractor.
