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South Side Journal (St. Louis)
May 14, 2000
Financial Irregularities Surface at Lemmons, Veterans
Organization
Financial improprieties within the local
Disabled American Veterans chapter are linked to the downfall of a decades old, beloved South Side restaurant, says the DAV’s
national commander.
In a long April 25th memo from
Cincinnati-based DAV National Commander Michael Dobmeler, local
DAV members learned of many financial irregularities within DAV
Chapter 1, some of which are associated with Lemmons Restaurant.
Lemmons, at 5800 Gravois Ave. near Christy
Park, closed suddenly December 29th. DAV Chapter 1 had owned it since late 1997. Before then, Joe Tucci had owned and operated the
restaurant for 16 years.
Dobmeler’s memo mentioned the following
irregularities that were uncovered as a result of an inquiry by
Michael G. Kessler & Associates, a New York City based
forensic accounting and investigative firm.
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Loans
of thrift store funds to employees
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Sales
of donated vehicles without proper state license
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Misclassified
general ledger entries
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Questionable
payroll expenditures
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Addition
of ineligible persons to the thrift store’s medical plan
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Use
of thrift store’s funds to pay for gasoline and repair bills
for the personal automobile of a former thrift store manager
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Lock
of invoices for a mobile phone
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Inappropriate
thrift store credit card usage
In addition, Kessler’s investigation
revealed the local DAV’s former financial officer had given a
former Lemmons employee about $12,000 because he feared she would
sue the chapter for what the memo called “sexual assault” if
she were not compensated.
No release was ever obtained…despite the
large amount of chapter funds that were funneled to her. As a result, the former employee has now filed a complaint
against the chapter, the memo stated.
On January 25th, the national DAV
imposed a trusteeship on DAV Chapter 1 that removed its two chief
executives, Stan Peeler and William B. Beachum Jr., and replaced
them with a board of trustees and a new thrift store manager to
resolve the local DAV’s problems.
The New acting Thrift Store Manager is Ken
Kooyman, who has been quoted in previous Journal articles about
Lemmons. Dobmeler
praised Kooyman primarily for his dedication and hard work in
making numerous improvements in the area of DAV’s functions
since he took over. Improvements
have included increased thrift store sales, staff re-organization
that has saved DAVE money, increased customer counts per store,
better employee morale due to changes in hourly wages, and a
dramatic change of employee support due to an enhanced benefits
package.
Two known lawsuits are pending against DAV
Chapter 1.One was
filed March 27th by DORS, a company seeking $1,242 for
computer services rendered. A
court hearing for that case has been set for June 8th.
The other lawsuit was
filed February 10th by Lemmons former chief, David Lotz,
who seeks more than $25,000 to cover his five-year contract with
Lemmons. A hearing
date for Lotz vs. DAV is scheduled to be set May 15th.
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