Chicago non-profit A Safe Haven accuses former president of misappropriating $2.5 million – CBS News

Chicago non-profit A Safe Haven accuses former president of misappropriating $2.5 million  CBS News

A Chicago non-profit is suing its former president, accusing him of illegally diverting millions of dollars in charitable funds and jeopardizing the charity's future in fighting homelessness.Mark Mulroe resigned from A Safe Haven Foundation in June. A 56-page lawsuit filed earlier this month accuses him of misappropriating more than $2.5 million in charitable funds. The non-profit, based in North Lawndale, provides housing and behavioral health services for the homeless.According to the lawsuit, Mulroe served simultaneously as president of the charity and as the owner and controller of A Safe Haven, L.L.C. and LU Partners — the management companies that handled the Foundation's day-to-day operations. The lawsuit alleges he exploited that dual control for personal benefit by transferring huge sums of money without board approval.

According to the lawsuit, "Mulroe directed the transfer of approximately $1.405 million in restricted grant funds," which could jeopardize future state grant funding. The lawsuit also points out a similar issue in Mulroe's past. In 2011, the Illinois Supreme Court found that he misused more than $100,000 in escrow funds, resulting in the suspension of his law license."It's very unusual for something like this to happen, or for an organization to sue a previous CEO or manager," said Bennett Weiner, President & CEO at BBB Wise Giving Alliance, a charity monitoring organization.Weiner said the Wise Giving