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SOURCE: WASHINGTON POST ON JANUARY 8, 1993. Any person who serves in a trusted position, such as a trustee, is called a fiduciary. All fiduciaries should be bonded. A Silver Spring, Maryland accountant embezzled $327,000.00 from a Rockville organization that helps autistic people. Deborah L. Prince admitted to Judge Frederick N. Smalkin that she had stolen the money. Amazingly, court records show that she had previously embezzled more than $48,000.00 from another non-profit organization. Montgomery County prosecutor, Susan M. Ringler reported that Prince spent the money on a $29,000.00 Mitsubishi Sports Car, and on $79,000 worth of renovations to her house. Of course, this entire tragedy could have been avoided if the non-profit organization had bonded the woman. No matter who you choose for a trustee, be sure the person or institution is bonded. Sometimes, a seminar attendee will say to me, "I don't want a bank trustee because they charge 1% per year to manage the trust." I often reply by citing stories such as the Prince story above and say, "If you choose the wrong trustee, one who steals from you, you could pay as much as one hundred percent." See also, Choosing a Trustee. |
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