BREAKING: WIADCA Corruption Exposed

Jay Blessed • May 26, 2020 • Featured, News

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At 11:51pmET on Memorial Monday, I received a lengthy email from a whistleblower named “Sam Johnson” titled: “Corruption At WIADCA Exposed.”

RELATED: JBArchive – My letter to WIADCA….

Nothing has been added or taken away. Read the VERY LENGTHY and VERY DETAILED EMAIL, with 16 ATTACHMENTS directly below.

Corruption At WIADCA Exposed

“I would like to bring to light the poor management, corruption and nepotism that is part of the West Indian American Day Carnival Association (WIADCA) operations. Those practices by WIADCA don’t just violate the not for profit 501(C)(3) rules but also raises questions of illegal activities that should be prosecuted. I understand that my statements are making bold claims that I intend to back up with itemize supporting evidence. The West Indian American Day Carnival Association (WIADCA) has made the point that I am trying to convey themselves base on their activities and business practices that are not ethical.

The goal here is not to destroy The West Indian American Day Carnival Association (WIADCA) but to make a plea to those in authority to utilize their power to bring meaningful changes to this organization. The product produced by WIADCA has been in decline for years now. There is a lack of confidence in the organization by the general public which explains why attendance and participation has been down. There is no disagreement with those facts. We can all agree on the importance of the organization’s mission. Hence, I would like to make the following recommendations.

Appointment of an interim board of business and cultural leaders that are qualified to sit on the board and their integrity is not questionable. Most current board members of WIADCA are not qualified to sit on any not for profit board and their behavior on organization matters falls along the lines of criminality. I will demonstrate this in my letter.
The current board members and staff of WIADCA should immediately have no involvement in any financial transactions of the organization. This may sound drastic, but the evidence will show that it is a necessary action that needs to be done urgently. The New York Foundation for the Arts is an organization that has the capability to manage the financial affairs of the organization. Therefore, the financial books should be transferred to them immediately or any organization that is reputable and has the history of handling the books for organizations that are not capable of managing their internal affairs.

[Attachment 1] – Letter from Attorney at Law representing 3 board members that had the courage to speak up against the injustice WIADCA as a body is responsible for which is the violation of the public’s trust. It is unfortunate that those members had to seek legal counsel for doing their fiduciary duty as board members asking for transparency in the organization. Anyone who speaks up in the organization has been ostracized and plans put in place to expel them as members.

A check in the amount of $25,000 was issued fraudulently to the board chair. [Attachment 2] The check cleared the bank. The check was issued under the pretense of repaying a loan to that board member. No such loans were approved by the full board or any document shown justifying the payment. Such loans and payments need to be in writing and approved by the full board as is stated in the filing of any 990-tax return. All board members should have a copy of the agreement, the supporting documents in their record, and approvals in their record. The current president instructed that no such payments should be done in future nevertheless she was circumvented. There were two signatures on the check. One of the signatures on the check is an ex-president from 2016 that should no longer be a signatory on the account. Someone signing a check that they are not authorized to is a criminal act. Someone cashing an unauthorized check is also an illegal act. If the ex-president from 2016 is still on file with the bank as a signatory and/or a resolution was not done to remove him and/or the resolution was done but not turn to the bank shows poor management, corruption and illegal activity previously mentioned above. If this scheme was executed with blank checks previously signed from 2016 it illustrates the lack of internal controls at WIADCA. If the check was signed with an old signature stamp why the old signature stamp was not destroyed. Charges must not only be filed against the persons that signed the check but also the ones that cash the check. It is unconscionable that this person or persons continue to have a say in the organization’s affairs or sit on any not for profit board. The precedents of such behavior have always been the filing of criminal charges and the person being banned for life on serving on any not for profit board or for a period of time. The attorney general’s office and the Brooklyn District Attorney office needs to open an investigation immediately. The most recent tax return that is available on the charities bureau website for 2017 shows loans from officers totaling $239,000. [Attachment 3] The trend of those loans amount goes up every year and is not in default. Those loans are instant red flags from an organization that is getting money from the state and city as well as corporate sponsors and public donations. The organization also generates cash revenue from tickets sales and vendors. There are no internal controls in place to safeguard the public’s assets. This begs the question what funds are used to pay those officers of the corporation considering that there is no documentation on the loans shown to the full board or an agreement shown to them. One criteria that organizations look for in board members is the board member’s wealth. This is done mainly to have the board member make a contribution to the organization. In WIADCA’s case, the reverse seems to be happening here. A forensic audit is needed to see if the funds that are coming to the organization from unknown sources/unreputable sources is use as justification for loans and those sources the funds originated from is WIADCA funds. A forensic accounting to see the paper trail for those expenses of the loan (1) Legitimate invoices (2) Legitimate payments via check, card, Western Union, PayPal, CashApp, Zelle etc. For the amounts we are talking about cash payments, CAN NOT be accepted. The amounts that we’re speaking here of is material and can affect the financial health of the organization and can make the tax return, financial statement and audit not reliable.
A responsible board would immediately suspend the parties involved in signing and cashing the check and investigate to determine the correct action to be taken. The insurance company would have been informed immediately also. It baffles the mind that the only action taken by the organization is to put a plan in motion to remove board members and the secretary at that time saying no further action is needed to safeguard the assets of WIADCA. Anyone agreeing to that statement and agreeing to go ahead with the plan to sweep those serious allegations under the rug do not just show incompetence and that those members are not qualified as board members but the existence of corruption in the organization. It is important to note that WIADCA’s assets is also the public’s assets. Anyone charged with the responsibility of managing those assets must do so without any conflict of interests. It is clear there is evidence of a conflict of interest with members. It is unheard of in the standard protocols in the governance of not for profit affairs someone can vote on matters pertaining to them directly as in the case of when a vote was taken to start and investigation. The leadership of WIADCA intimidate and bully members that speak up and may not be knowledgeable of their rights. Legitimate matters dealing with questions of transparency must be address. Eyebrows should be raised when a lawyer is present at a regular board meeting. This is not normal.
According to the organization’s bylaws an annual meeting is call once a year in December. Since December more than one meeting has been called mainly to get rid of board members and make amendments to the bylaws that would benefit the parties that are involved in the corruption. We are in the middle of a pandemic, nevertheless the protection of corrupted individuals and the institutionalizing of corruption as part of WIADCA operations takes precedent over urgent matters. A public face is put on with their activities to mask the turmoil that currently exists at WIADCA and lack of ethics by board members you are see from this letter and supporting documents.

[Attachment 4] – This is a letter that was circulated to WIADCA members and the groups taking part in the carnival. The letter highlights some of the problems that currently exists within the organization. The operations of any not for profit Corporation should be open to the public. Actions taken by WIADCA in response to the letter shows their board members are not able to grasp onto that concept. Before dismissing anyone’s rants, the content must be examined for truth. There was nothing said incorrectly in that letter. WIADCA’s response to the letter show they are inept, and they bring to the surface all the points raised in the letter centered around corruption and why the organization is not moving forward.

Groups were called for their payments immediately. This showed that payments were outstanding according to the letter. There was no apology to the groups and no discussion of the bogus survey that triggered the letter. The argument that the checks were issued in January/February does not hold water. It is a well-known practice that checks are sometimes issued before the end of fiscal year or just after it ends to show a good faith effort of cleaning up the books. Later, those checks are voided if people do not call for payments and the funds used for other purposes. There have been many times awards have not been given out and that money used for other purposes that it was not intended for. Respect is shown not just by the words used but by actions. So far there is no mention what the plan for the awards or use of the awards money. The bravado of the management at WIADCA is that they are not obligated to inform groups of anything. Those groups have yet to be given the respect they deserve although they are responsible for the organization’s existence and the creativity they bring to the table. They do not give groups and people the standard two weeks notice before a meeting. For example, they notify the groups via email on 5/21/2020 and meeting is 5/26/2020. The same email have two dates on it to mislead people. No request was made for people to add items to the agenda or even an agenda given prior to the meeting. This is not how you would handle the affairs of someone that you respect. People’s time and opinions must be respected. That manner of operation is to limit the number of people that will speak. You can’t blame someone that walks away or speak up on the in justice that takes place at WIADCA.
Part of WIADCA play book used for years now is to put one group against another group. Another tactic is to have one person speak on behalf of all the groups when that person has no authority to do so. This behavior is shameful. It is sad to say it was done in response to the letter. For someone to speak on behalf of all the groups or even pretend they have the right to do so, the group needs to have members, there should be meetings, dues, etc. Why would WIADCA try to legitimize someone in the public eyes they know is not legit. See screen shot below to address this point [Attachment 5]. If a person speaks on behalf of the groups why that person got their payment in January/February and most other groups got their stipends in May. There is something wrong with this picture. The Letter was address to WIADCA not the NYCBL. The person is shifting the blame from WIADCA to the defunct NYCBL Therefore, the statement of preference vendors /nepotism is a legitimate allegation that seems to be supported by the organization’s actions and this vendor response.
Part of WIADCA response to the letter is to put on an aggressive media campaign asking people to share their content on social media and even at a food distribution drive. There were straight forward with their request saying that is to show they have the public support. The support should be organic and not manufactured support to disguise the failures of the organization on accountability. v
A member responding to the email by emailing all the members and cc the originator of the letter is standard business practice. That member simply asked that the issues raised in the letter be address. The member was condemned for carrying out their fiduciary duty. The members that want to vilify someone for standard business practice open themselves and the organization to liabilities for not fulfilling their responsibility to the organization. This shows those persons are not qualified to sit on any board. The bullying tactics of referring such persons to the governance committee is part of a plan to expel them so that no one speaks up on the wrong things taking place at WIADCA. On 5/21/2020 the board secretary did the same thing of including everybody’s email in her message to the groups. This shows the hypocrisy of the organization’s officers.

New York State Assembly member Diana C. Richardson was informed of the corruption with the organization and had a meeting with them. She is knowledgeable of the $25,000 check in question. She told them this can destroy the organization, but she has not moved aggressively to getting the problem corrected. Those parties continue to sit on the board doing damage. I would like to advocate that the people in authority that is knowledgeable about the wrong doings should speak up and take action immediately.

In 2019 the new auditor started examining the books for 2018 to prepare the tax return and audit. The auditor had to stop his work because the books were incomplete and inaccurate. The auditor had to return when WIADCA recreated the records. WIADCA certified to the state and city that they have the capability of managing finance with qualified staff, software and internal controls. Being backed up with accounting can be forgiven because it is a tedious task that takes time. But having an unqualified person responsible for entries, reconciliations and controls should not be forgiven. Also, WIADCA having an inadequate program should not be accepted. I am making this statement because requested reports from board members have never been given. One of the open items in the audit was documentations of the loan to the auditor. When the auditor asked the board chair for documents on the loans. The board chair turn to another board member to say to her we need to get together to get this for the auditor. This was said in the presents of the auditor. The auditor reply why are you asking her because those things should be in the record and it does not involve the other board member. The board chair replied “Ok, I will work on it for the next time when you return!”. It is clear from this exchange documents are manufactured. Those are the same parties part of the $25,000 check above. When the corruption is expose the investigators can check the communication between members via text, WhatsApp, email, and you will find the guilty parties. I am not just saying this but this is how they move to justified fake invoices etc.

The president had to call a locksmith to get access to a company safe that she has rights to examine. The person or persons with access to the safe were out of the country. Members that did not want the president looking into affairs of the organization that she is responsible for called the NYPD to report a breaking. The locks were change in the day rightfully by the president, and a meeting was called for the night by the board chair that was out of the country. There was a contention who had the rights to call a meeting on short notice. Not all member showed up for that meeting including the president. Most members were not there in person and a few were on the phone. The once that were physically present at the meeting are suspicious. The NYPD showed up at the time of the meeting looking for the president for breaking into the safe base on a false report. The meeting was called to get someone falsely arrested or embarrass. This is wasting the NYPD’s resources and person or persons making that call should be punished. Please look into the cities records the week of March 12th to find the NYPD officers that responded and came to the office at 323-325 Rogers Avenue Brooklyn, NY 11225. An Interview with the officers and the people that attended the meeting will corroborate what happen. Base on the disturbing situation with the meeting, I would not put it pass them to have someone impersonate a police officer or they have a police officer friend show up at the time of the meeting. Interviews will clarify that. The 71 Precinct can definitely get to the bottom of this.

One of the checks in question is a check payable to Daphne Jacobs. The check was issued in the same fraudulent manner as mentioned above. The services provided for that check is questionable because this vendor is known in the community for the ritual service of “Obeah”. As a not for profit organization involved in culture it is a stretch to justify paying someone’s personal spiritual advisor. It is forbidden to pay Daphne Jacobs with taxpayer’s dollars that the city and state has allocated for cultural activities. There are other vendors that fall in the category of questionable services. The average payout to the groups taking part in the carnival is less than $500 and most groups do not get any support although some of the funds WIADCA gets is there for the groups that need help. It is mind blowing that the board members do not see the unfairness in this, the illegal behavior in this, and their conscience do not step in for them to speak up. May be the reason those board members do not speak up because they benefit from the corruption themselves. Example it has come to my attention that the person responsible for the stage is married to the board secretary and the payment to them is excessive compared to the person responsible for the same job in the past. If you follow the paper work trail you will see money goes out the door via Paypal account etc. Those same board members will say to the groups they do not get paid for the job they do for the organization but they fail to mention how they benefit in other ways that violate not for profit operations.

It is painful that those things in my letter and supporting attachments are true. The sad thing it takes away from the hard work that those groups put on to produce the carnival. In speaking to the elders, the magnitude and vibrancy of the carnival is on the decline. The New York West Indian carnival parade has given birth to numerous parades throughout North America, but those other parades have surpassed New York West Indian American Carnival Day Parade because of the corruption that exist in WIADCA. Numerous groups and individuals have walked away from dealing with the organization because of the disrespect and blatant corruption that they see. Other groups treat them with lukewarm respect. In listening to the messaging from WIADCA they are still looking forward to putting on a parade of some sort this year. Is the reason they are proceeding with plans is to ensure they continue to get tax dollars to enrich themselves and their associates? Why the safety of the public is not the first thing being conveyed or main thing address in their messaging. It is treated as an afterthought. The independent press coverage, social media and comments criticize WIADCA for their lack of compassion and the fact previously mention poor performance of the organization have been in decline for years now. Other carnivals and parades similar to New York West Indian American parade have cancel their events and put out responsible statements. At this time, there is no need for miss leading statements and interviews that add to the confusion and panic in the community. This letter may be read with a level of skepticism but if you go through the points mentioned you will see that corruption is embedded in The West Indian American Day Carnival Association (WIADCA) and something needs to be done to get this rectified. The WIADCA office and the home of some members are financial crime scenes. The board members that vote contradictory to their oath to serve the organization shows they are compromised. Their words have no weight so the paper trail must be followed with a forensic audit. In-addition, there are board members with family relationships as shown in the attached articles Board Chair and the first vice president are related. [attached 6]. The treasurer has one family member on the board and recently brought another family member (daughter) to sit on the board to replace the board members they expel for speaking up against the corruption. This is another thing not acceptable in the not for profit industry but they get away with it. If that is the case the tax returns are as usual incorrect. For years now this level of corruption has existed. Past presidents and members have resigned to make a statement against the lack of transparency such as in the case in 2011. Their resignations have not achieved it’s intended purpose of bringing the corruption to an end. The organization suffers, the public’s money is wasted, and the culture continues to die. This is why I am reaching out to everyone under the whistle-blower policy to put the organization in capable hands. I am calling on the press to ask the questions. I am calling on elected officials to stand up. I’m calling on the different groups and individuals to speak up. I’m calling on the Brooklyn District Attorney, Attorney general, the NYPD, The Inspector Generals, the controller office, mayor office of contract service and the state office and IRS to open an investigation because those allegations cannot go unanswered. Failure to not answer those questions shows a failure to serve the community.

This is the tip of the iceberg on the corruption at WIADCA. WIADCA breaks the law routinely, violated the rules of all the agencies BCC in this email and their own bylaws.

BCC on email

New York State Attorney General

NYPD investigation

Brooklyn District Attorney

The Mayor’s Office of Contract service

The Governor

The City’s Inspect General

The State’s Inspect General

The Charities Bureau

IRS Internal Revenue Service

All Elected official and their staff

Candidates running for office