Zeta Phi Beta Sorority IHQ Under Fire
 

Saw this in another discussion group:

I-Team: Zeta Phi Beta Sorority Under Fire

Tuesday February 07, 2006 5:25pm Reporter: Andrea McCarren


TONIGHT, A MONTH-LONG ABC7 INVESTIGATION UNCOVERS AN ALLEGED FINANCIAL
SCANDAL AT A SORORITY BASED IN D.C.

UNDER SCRUTINY: THE EXTRAVAGANT SPENDING HABITS OF ITS INTERNATIONAL
PRESIDENT AND AN EXECUTIVE BOARD THAT MAY HAVE BEEN COMPLICIT.



Read the whole segment here:
http://www.wjla.com/news/stories/0206/300856.html

That's really disappointing.

Re: Zeta Phi Beta Sorority IHQ Under Fire
 

:eek: :eek: :eek: :o was my reaction when I saw this yesterday! :o

Oh.My.Dayum!

Re: Re: Zeta Phi Beta Sorority IHQ Under Fire
 

I'd like to see the full report... i'm guessing this could be big news in the Greek world.

It's very unfortunate, but i'm surprised something like this hasn't come out before. As much as we'd like to think that all of our sisters are wonderful people and honorable, there are some that aren't.

If true, this is very very sad.

Re: Re: Zeta Phi Beta Sorority IHQ Under Fire
 

Same here. But my question is if the IRS hadn't caught on to the mis/lack of filings by the org, and the extravagant spending (according to the article), how is it that ABC7 found out enough info to launch an investigative report?

Re: Re: Re: Zeta Phi Beta Sorority IHQ Under Fire
 

Only ABC7 can answer that question.

That's awful. :(

It seems pretty obvious to me that someone called the newstation and leaked the story. That's how it usually happens. I mean, someone in there knew something and felt a need to tell it. you don't get records of emails and other documents at the local library.

Yeah, I was like :eek: when the article mentioned having internal emails.

Has this made the national news yet?

ETA: I got the video that goes with the article. I no longer wonder if the authenticity of the story is under question.

this is sad
 

the tax records are made public for any non-profit organization through www.guidestar.org. usually orgs that make under $25, 000 are not required to file. however, judging from the comments made alledgedly by members, it could be possible that the tax information along with everything else was leaked from inside.

i think this is sad and im sure that all of the members of zeta phi beta are having a wide variety of feelings. im sure they will get through it with grace, style, prayer and perseverance.

I thought this would be about a game show or maybe an MTV show.

Anyway, wouldn't 400K be a lot of money for an organization to just lose? If they don't have houses and real estate to worry about you would think that's something that wouldn't go unnoticed.

Also this is my favorite quote:

"Why would you buy wigs? I've never seen her in a wig. That makes me wonder who was benefitting from all of this. Who are the wig-wearers?"

-Rudey

Re: this is sad
 

I agree. Based on the news report there are people on the inside who felt betrayed and helped them with the investigation. That's how it's supposed to be, though. We're talking about a federal offense and this isn't the time to play coy in the name of sisterhood if you have insider scoop.

I also agree that the ladies of Zeta will get through this with grace. That is evidenced by how they have generally remained silent on this matter. :)

Re: Re: this is sad
 

betrayal is probably one of many feelings had and rightly so. this is rough. i would really be surprised if any woman from the organization would make a comment particularly on a message board.

Has anyone heard of an official statement from Zeta Phi Beta or any attorneys involved?

It wasn't an issue with the IRS b/c they haven't filed taxes since 2002 (just b4 their current president took office). You have 3 years to file a tax return for any given year, although penalties can still be assessed for any money owed.

Since they haven't filed a return during their current president's administration, the IRS had no way of knowing what was going on. I'm sure that the IRS is going to be all over them soon, though.

Re: Re: Re: this is sad
 

There were some comments made on the actual article. If they are still there.

What makes you think their organization doesn't own any real estate?

Re: Re: this is sad
 

Ditto

Are there ZPB houses on campuses across the country, let alone ones owned by their IHQ?

-Rudey

Some of their chapters do have houses. And they own their international headquarters in DC.

Any other questions? lol

If there aren't, are sorority houses the only real estate a IHQ can own?

Who owns those houses?

-Rudey

Re: Re: this is sad
 

Co-sign. (((Zetas)))

I did not know that their president lives in Columba and works for Benedict. My uncle graduated there in the 80s and is highly involved in alumni and recruiting future students. And this will not be good news for BC either, since they have been under a lot of scurtiny the last few years.

Also, the website could have taked off the caps on the story and had it not look like it came from a telepromp.:p

Re: Re: Re: this is sad
 

That is one of a few reasons why I was questioning the authenticity of the story. Until I watched the video.

I'm gonna let you figure that out, since this little exchange is about whether or not their organization owns any real estate. lol

lol

That website has a place for feedback on that article, and after reading what has been posted there, I can see that some members of Zeta Phi Beta are upset that this has become public. Others seem to be happy that it's being made public.

I can understand wanting to keep dirty laundry to yourselves. But this is more than just dirty laundry- it's a crime. It's also a public matter. Nonprofit organizations all undergo a great deal of scrutiny and are subject to very specific rules and regulations, by both the IRS and their state attorney generals. It goes along with the tax benefits. The accused, and anyone else who may have helped in the abuse of funds, was put in trust of the money. $400,000 is a LOT of money to a GLO.

If these allegations are true, and it seems like there's a lot of documentation, this may be an eye opener for all GLOs. Not only to have stricter regulations and policies for safeguarding the funds of the organization, but also to deter anyone else in a position of power in a GLO to think about doing something like this.

I'm sorry it had to happen to ZPhiB, and I feel for its members, but i'm glad that this is public. It is something that we should all be aware of.

Answer the question since you know so much.

Most GLOs have local corporations that own houses, not the IHQ. Many GLOs rent. And I doubt that any of the D9 have as many houses as other types of GLOs to begin with.

So really is there a vast empire of real estate in their portfolios creating a complex web of financial transactions? You know so much about ZPB so I thought you would know.

-Rudey

In terms of undergraduate houses, Rudey is correct. So the question remains, are sorority houses (undergrad and alumnae level) the only kinds of properties that NHQ and IHQ can own.

Who said anything about a vast empire? You said "...they don't have houses and real estate to worry about ..." You stand corrected. Now, run along. lol

Yes, the troubles that have been visited upon Zeta Phi Beta is a tragedy; but it's not unique. Even though, as we have seen in the recent accounting scandals in corporate america of late and other cases, this is serious problem in general, it's more disturbing in that it's a non-profit and BGLO. Without being PC here, as it concerns out HBCUs and other groups(e.g. churches,etc.), far too often many of our problems stem from someone looting the coffers,general mismanagement or financial malfeasance. In some cases there does seems to be a culture of entitlement in which leaders treat the organizations they lead as their personal fiefdoms where they use them for their own profit. Embarassing as this might be, this may be the thing that helps put the "fear of God" into our BGLO leaders, in order that we can actually fulfill out mandates of service and community empowerment. (An aside: A few years ago, former Virgina governor L. Douglas Wilder wanted to serve as president of his Alma Mater, Virginia Union University, and there were some who wanted to make this happen. But when Wilder, who ran a very tight ship administratively as governor, made it known that if he accepted the mantle of leadership at VUU, he would come in and clean house. Well, the powers that be at VUU balked. He's now mayor of Richmond,VA. )This should motivate ALL of us to demand more accountability in our groups!

Well said, Wolfman. Just an aside: this is not unique to the nonprofit world either.

Yes. We're having those (alumni) issues... :rolleyes:
July 2006, please hurry up! (sigh)

And you said they owned houses at campuses.

I will pray for your sins.

-Rudey

Of course not. Enron, Worldcom, Healthsouth...the list goes on.

My favorite is when a CEO used the word EBITDAB with me. I know what EBITDA is but evidently EBITDAB is Earnings before interest, taxes, depreciation, amortization and Bob.

-Rudey

Absolutely not. I sure that many HNQ and IHQ have investments that don't include chapter houses. Maybe in the aspect of owning land or whatnot.

Houses aren't the only form of real estate.

They do own their IHQ, which is a piece of prime real estate, located on New Hampshire Ave. in D.C.

Don't some organizations help finance housing for certain chapters? That would make them owners until the loan is retired wouldn't it?