Wednesday, March 05, 2008


This Matier & Ross story of grand embezzlement from a non-profit that operates the City-owned garage in Golden Gate Park is based on statements from Sam Singer, who is a paid spokesperson for the alleged victim, the Music Community Concourse Partnership.

It’s full of one-liners.

According to the story the Chief Financial Officer of the non-profit only “borrowed” the $3,600,000.00 ($3.6 Million) in order to play the stock market.

Colley said he had fully intended to return the money, but then the market took a nosedive.

This is well worn joke. All embezzlers are “only borrowing.” Of course, that’s not what (I’m betting) the accounting entries say. The accounting entries (I’m betting) contain little fibs. Like, $3.6 Mil worth of little fibs.

But, hey! His lawyer describes him as “a family person [sic] with the best of intentions.”

Ha, ha, ha!

The funniest part of the story is that the accused has been discussing “restitution” with his former employer.

Here are the figures from a nice free amortization calculator to tell us what “restitution” in this case could mean.

I assume that if Colley had assets that could be liquidated to make the Concourse Partnership whole, this would have been done already and we never would have heard about it.

If Colley pays back the $3.6 mil as if it were a 30-year mortgage with a 5% interest rate (a sweetheart deal), his monthly payment would be $19,325.58. That’s a lot of after-tax cash to come up with, month after month, especially if you consider that an admitted embezzler’s income potential, at least in areas involving financial responsibility, tends to "nosedive."

Or, let’s say there’s still some cash around and he gives it back, and let’s say the outstanding amount is only $1 Million. A thirty year 5% rate would require a monthly payment of $5,368.22, which equals almost $65,000 per year. What are the chances those payments will keep coming in… for thirty years!

I think it more likely the public will pay.

To paraphrase MLK:

Screwed again, screwed again… God Almighty, we’re screwed again!

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