Article Archives >> Lead Stories >> November 1-30, 2009
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Senator Who Is Not On Board
Has No Fiduciary Duty to Nonprofit
Attorney General would have to show
that he controlled day-to-day operations
The Pennsylvania Commonwealth Court has dismissed a breach of fiduciary duty claim against a former state senator who was convicted of looting a nonprofit organization he had helped to create and fund, but with which he had no direct legal connection. (Commonwealth v. Citizens Alliance for Better Neighborhoods, No. 186 M.D. 2009, 11/10/09.)
Pennsylvania Attorney General Thomas Corbett brought suit against former state senator Vincent J. Fumo, the convicted former executive director of the organization, and its individual directors following Fumo’s conviction on 137 counts of fraud, obstruction of justice and tax law violations in connection with more than $1.9 million in personal gain from funds of the state Senate, the Citizens Alliance for Better Neighborhoods and another nonprofit. (See Nonprofit Issues®, 8/1/09, and Ready Reference Page: “Indictment Spells Out Claims of Benefit, Obstruction of Justice by State Senator.”)
Article Archives >> Lead Stories >> November 1-30, 2009
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