BOSTON — A Saugus selectman pleaded not guilty in Suffolk Superior Court to charges related to the alleged theft of more than $1.7 million from a nonprofit Wednesday.
Mark Mitchell, 49, is one of two former employees of the Boston Center for Adult Education accused of stealing from the nonprofit. Prosecutors allege he wrote unauthorized checks to himself and others, used the company’s money to fund his participation in golf tournaments, and to cover expenses related to a youth baseball team he owns and operates in Saugus. He is also accused of misusing his political campaign funds for personal expenses unrelated to his campaign.
Mitchell declined to comment.
“I am committed to holding individuals accountable who abuse their power and betray the public’s trust,” said District Attorney Rachael Rollins in a statement. “Their selfish and criminal actions depleted resources that were intended for the improvement of our communities, but more critically depleted the public’s confidence in our institutions.”
The Boston Center for Adult Education provides educational opportunities for adults who foster personal and professional development, enhance a sense of community and encourage social responsibility.
Mitchell, the company’s former controller, was hired by his co-defendant, former executive director Susan Brown, in 2011. His alleged thefts from the nonprofit began the same year. Both Mitchell and Brown were placed on administrative leave on Sept. 18, 2018 and fired on Oct. 5, 2018.
A third defendant identified as Brown’s partner, Karen Kalfian, is also facing charges of receiving stolen property by scheme. Brown and Kalfian live in Marblehead.
The Center for Adult Education retained Marcum LLP, an accounting firm, to conduct a forensic examination of the organization’s books and records, including its bank accounts, in September 2018.
According to a complaint filed in Suffolk Civil Court by the organization, the Board of Directors discovered “serious misappropriations of funds from its bank account, which at all relevant times were controlled by Ms. Brown and Mr. Mitchell.”
This included cashed checks that Mitchell and Brown allegedly wrote to themselves and Kalfian. Mitchell allegedly forged Brown’s signature to deposit the money into his own account. He allegedly embezzled more than $970,000 through this scheme.
Beginning in 2009, the same year Brown was appointed executive director, payments of at least $67,000 per year were made to Kalfian. Brown allegedly created invoices on behalf of Kalfian stating she performed various general marketing services for the company.
In an interview with Marcum LLP, Mitchell allegedly said Brown directed him to issue checks to Kalfian on a weekly basis, which he would provide in hand to Brown for her to take home to Kalfian.
Mitchell is also accused of making payments from the nonprofit to an elite youth baseball league he owns and operates, Saugus Wings.
Additionally, he allegedly used his employer’s account to make unauthorized payments for team and personal expenses totaling $242,749. This included his participation in golf tournaments and sending youth baseball players to out-of-state baseball camps.
In an attempt to cover up the thefts, Mitchell and Brown allegedly falsified the nonprofit’s records. They are accused of producing false reports to be filed with the IRS in an effort to renew the nonprofit’s tax exempt status that they had allowed to lapse.
The pair allegedly presented the organization’s Board of Directors with a forged letter purportedly from the IRS stating that the nonprofit’s status had been reinstated.
He is charged with making false entries in corporate books, publishing false or exaggerated statements, common law forgery, common law uttering, three counts of forgery, three counts of uttering, and four counts of larceny by scheme.
Mitchell, who was first elected in a special election to recall the Saugus Board of Selectmen in 2015, is also facing charges in connection to the alleged misuse of campaign funds, including improper campaign expenditures, making a cash campaign expenditure over $50, mixing political committee and personal funds, and a fifth count of larceny by scheme. He allegedly withdrew more than the $50 maximum set by law at locations in Boston, which gives Suffolk prosecutors jurisdiction over the offenses.
In his answer to the complaint filed on Oct. 31, Mitchell denied the allegation. He claimed the organization was acting “in bad faith and with unclean hands,” and that any damages were caused by another party. He also claimed the court did not have jurisdiction over the matter, and reserved his right to pursue relief over the unwarranted charges. He requested that the complaint be dismissed and he be awarded his reasonable costs and attorney fees. He also requested a trial by jury.
Mitchell will appear in court again on Sept. 27.
