Whistleblower Alleges Financial Mismanagement, Retaliation at Major Miami Nonprofit
Charity Navigator, an independent charity rating organization, previously awarded YoungArts its highest rating.
July 01, 2020 at 03:05 PM
3 minute read
The Miami-Dade Circuit Court will soon hear arguments in a case involving alleged retaliation against a whistleblower previously employed by a major nonprofit.
The allegations involve Stacey Glassman Mizener, vice president of development for the National YoungArts Foundation, which has identified young artists and provided them with opportunities for creative and professional development.
Mizener was accused of firing Melinda Marcuse, a development associate, after Marcuse reported to human resources that Mizener was using donors' contributions to pay her personal expenses.
Iva Ravindran, a partner at Weil Snyder & Ravindran in Miami who represents Marcuse, said it is vital for employees to disclose wrongdoing. This lawsuit comes as other nonprofits have recently come under fire in whistleblower retaliation lawsuits.
"Speaking out when you see something wrong is very important, and organizations get the message that when someone speaks out, you can't silence them," Ravindran said. "You have to take it seriously."
Now, YoungArts will have to reckon with the impact that the whistleblower complaint might have on future donations to the nonprofit, tax-exempt organization. YoungArts has received donations from patrons, and corporate support from Carnival Corp., PwC, Wells Fargo, Braman Miami and Bacardi.
But with the current downward economy, many businesses are cutting back on their marketing and charitable donations. While Ravindran said it is not her goal to have these and other corporations cease their charitable donations to YoungArts, she acknowledged that the allegations against Mizener might have that effect.
"We hope they will use their power to speak to management and hold them accountable," Ravindran said. "And have YoungArts give them some proof that they are taking action and playing by the rules."
Charity Navigator, an independent charity rating organization, previously awarded YoungArts its highest rating. And YoungArts posted a statement saying that its policy is not to comment on any pending litigation.
Read the complaint:
Marcuse was in the development department, which is responsible for raising charitable donations. The complaint stated that part of her duties was to observe how Mizener used those donations.
Throughout 2017 and 2018, the complaint alleged, Marcuse observed multiple occasions where Mizener submitted for reimbursement her expenses for lunches, dinners and outings that were not for business purposes, including lunches with Mizener's family members and friends.
Marcuse met with the executive director of human resources in June 2019 and pointed out Mizener's misuse of YoungArts' donors' funds, the filing alleged. According to the complaint, Marcuse asserted that this misuse resulted in numerous violations of state theft and federal tax laws.
Following that meeting, Marcuse's duties and responsibilities substantially increased but she was able to complete them effectively. Notwithstanding her performance, when Marcuse met with the human resources executive director again in November 2019, she was terminated, the complaint stated.
Ravindran said Marcuse suffered economic damages from lost wages and emotional damages from the negative effect the incident had on her reputation, as well as mental anguish and embarrassment.
Ravindran said: "Most of us take a lot of pride in what we do and to have that taken away from her was very traumatizing."
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