THIS IS A COPY OF THE LETTER SENT TO APDA CHAPTERS/I&R CENTERS/AFFILIATED
SUPPORT GROUPS
FROM: Salvatore J. Esposito, Jr.
APDA Preseient
DATE: July 31, 1996
RE: Frank Williams Update
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Slightly more than a year ago, we discovered that Frank Williams had
diverted more than one million dollars worth of contribution checks from
APDA. We have tried to answer all questions regarding this diversion of
funds and have advised all that we fully intend to recover this money
through an employee theft insurance policy and a lawsuit filed against the
financial institution in Minnesosa where the funds were deposited and disbursed.
The year long federal investigation ofFrank Williams came to an end
yesterday. In Federal District Court in Brooklyn, Judge Reena Raggi
sentenced Mr. Williams to 15 months in prison, followed by 3 years of
supervised probation and ordered to pay $877,442 restitution to APDA from
his earnings after his release.
We hope that in the months ahead, we will be able to advise you of
the successful recovery of the missing funds.
This incident has been very disturbing to us all and costly in both
time and money. Since 1961, APDA has been the leader in the fight against
Parkinson's disease. We have become stronger and more effective as a result
of this situation. The future is bright and we are more committed than ever
to ease the burden and find the cure.
Thank you for your continued allegiance.
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COMMENT FROM WILL JOHNSTON:
1. The money stolen was money that the APDA never knew it had. Checks coming
in were diverted to an account unknown to APDA prior to their being entered
into APDA books.
2. The amount of employee theft insurance is in question. The amount stated
on the policy face is grossly inadequate to cover the loss. The loss took
place over a period of years, and there is disagreement between the APDA and
the insurance company as to whether each year[policy period] should be
considered separately which would increase the insurance company's liability
substantially or if there was merely one loss over a period of time during
which the policy was in effect. There is some legal precedent on both
sides, but there are no leading cases in New York state.
3. I have doubts about the ability of a 50 something felon with a heart
transplant just out of jail and on supervised probation to earn enough to
pay significant restitution. Putting Williams in jail serves no useful
purpose to APDA as far as getting the money back. One million dollars
($1,000,000!) for 15 months in prison sounds like a pretty good deal for Mr.
Williams, but I would not like to trade places with him.
4. The APDA has taken steps to insure that nothing like this happens again.
The mail is now opened in a room with a glass wall with at least three
people in attendance. All incoming mail is opened and inspected there even
if addressed to a particular person. The auditing firm has been changed to
one of the major firms.
