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  1. #1
    Join Date
    Oct 2009
    Posts
    2

    Unhappy Club Embezzlement

    My question involves criminal law for the state of: Texas

    I feel silly even asking this, but, if the treasurer in a club takes money out of the account because he "feels he is owed it" and then gives the balance to a new treasurer, is that criminal embezzlement? (We're talking about $800 out of $3500.)

    The club isn't incorporated and doesn't have any legal existence as far as I know. We created by-laws, having meeting, take in dues, and have rules about how any monies are spent. We're a chapter of a national organization, so I guess that means we're "chartered," but they don't want to have anything to do with our problems. The club has been around for many years; I was a new member just 2 years ago, and they just elected me president, and this falls in my lap. So, I'm looking for a little help!

    Also, if you have any ideas about what to do next, I'd appreciate that, too! (We asked the guy to return the funds. He said "no.")

    Thanks.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Club Embezzlement

    You have given us no explanation of why he believes he's "owed" this money. Is there one?

    You are free to make a report of this to the police.

  3. #3
    Join Date
    Oct 2009
    Posts
    2

    Default Re: Club Embezzlement

    (As these things usually seem to be) It's convoluted and completely undocumented. Anecdotal reports from various people says that he and several other club members formed a SEPARATE group, and pooled some money in order to help buy the parts necessary to build a small experimental aircraft. Over time, the handling of that arrangement was muddled by one member of that group, and so everyone in the group decided to kick that person out, and then to merge the money and the project into the club, with the agreement that the muddling person would be kicked out of the club. So, the money was put into the club. This was several years ago. Recently, the muddling ex-member rejoined the club. Current club members didn't know anything about the previous alleged agreement, so they let him join. The treasurer took the liberty of taking "his" money out of it since the club reneged on the agreement, and the quit the club.

    100% of this is verbal; as far as I know, there are no written documents to any of these agreements or claims made by all these people.

    Current members only know about the by-laws, which in part state:

    "Chapter expenditures will be authorized by a secret simple majority (50% + 1) vote of the members present at a legal meeting with the following exceptions:"

    Exception are for small amounts... and then,

    "Expenditures in the excess of $100 (one-hundred dollars) will be presented to the Chapter members a minimum of seven days before the monthly meeting where it will be brought to a vote. If the nature of the expenditure is such that it needs to be expedited then a simple majority of officers could conduct a poll of the membership by phone or e-mail and the results presented at the next meeting. It will take 2/3 (two-thirds) of votes cast for an expenditure to be approved."

    No presentation was made, and no membership voting was done. He just surrendered the funds to the new treasurer, minus $800.

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