• Russell Carl Brink• Age 55• Executive Director
• Association of downtown Eugene businesses• Business Improvement District• Collection of dues• About 15% from the City of Eugene (taxpayer funds)• Funds used for promotion of Downtown• Mall Guides – “Red Hats”• Annual budget of about $500,000• Volunteer Board of Directors
Management Transition• 2008 – decision to transition management of DEI to the Chamber• Reduce overhead expenses• Contract with Brink to assist in the transition• $10,000 per month for a three month period
The Discovery• Brink does not perform during the transition period as expected• Contract is terminated early• Brink re-locates to New Hampshire
The Discovery• During a review of documents in Brink’s office a discarded Wells Fargo Bank statement for August 2008 is discovered• Suspicious ATM cash withdrawals
Financial Analysis• DEI’s finances for a one year period are examined by a private CPA• Discovery of numerous suspicious transactions• First report to Police in April 2009
The Investigation• Discovery of two DEI • ATM cash withdrawals Bank accounts from local bars and – Wells Fargo Bank clubs – Bank of America • Locations all operated state video poker machines
The Investigation• Cash back from deposits• Irregular pay checks to Brink for varying amounts• Direct bank transfers from both accounts: – Credit cards – Cell phone accounts
The Investigation• Subpoena for Brink’s personal bank records – ATM cash withdrawals – Same bar/video poker locations
The Investigation• Subpoena for Brink’s credit report – Numerous credit card debts
The Investigation• Brink is twice-divorced• Last divorce in 2006• DEI records show increase in ATM withdrawals and other payments 2006-2007
The Investigation• University Small Business Association• Safe and Sound• Eugene in Common Brink volunteers with these organizations handling the finances!
The InvestigationSafe and Sound – a Lane County program funded by grants toaid at-risk youth.• Received an Annenberg Foundationgrant for $100,000 in November2007• Funds moved in multipletransactions to DEI bank accounts• Brink restores these funds toS&S with a $90,000 personalcheck!
The Investigation• University Small • Eugene in Common Business Association – Operation transferred to – No missing funds Saturday market – Money moving back and – Brink closed bank forth through DEI account – Direct relationship with – Turned over check and DEI through Mall Guides incomplete box of records to new managers
The Investigation• Interviews with DEI employees – Bounced paychecks – Brink asked several to hold paychecks a few days – Brink sometimes paid bounced check penalties for employees out of his pocket – DEI always short on money
The Investigation• Interviews with DEI board members past and present – Relied on Brink’s statements on DEI finances – Repeated requests for additional documents – Lack of knowledge about DEI financial details
Financial Losses• Approximately $150,000 in losses from 2005 – 2008• Statute of limitations reduces the loss figure to about $85,000
Grand Jury Indictment• July 2010 – Brink indicted for multiple thefts• Warrant isn’t entered until January 2011
Brink in New Hampshire• Ex-wife identifies woman in New Hampshire• Public records check shows Brink at the same address
Negotiations• Prison sentence?• Probation?• Restitution?• What are we going to do with Mr. Brink?
Sentencing • 120 months prison • Downward departure to 5 years of probation • Approximately $85,000 restitution • $30,000 at time of sentencing • Probation violation means 120 month sentence imposed
The Players• DEI Board • Wells Fargo Bank• DEI Mall Guides • Bank of America• Chamber of Commerce • Equifax• Safe and Sound • Brink’s 2nd Ex-wife program / Lane County • Lane County District• University Small Attorney’s Office Business Association • Lane County Jail• Eugene in Common • Cell phone carriers,• City of Eugene credit card issuers, etc.
Detective Steve Williams CFCEEugene Police DepartmentFinancial Crimes Unit / Arson Unit777 Pearl Street Room 107Eugene OR 97401541-682-2682 office541-682-8337 faxEmail: email@example.com