Attorney General Alleges Operator Of Medical Supply Nonprofit Used Charity Funds For Trips, Concerts And Other Personal Expenses

Connecticut Attorney General's Office

Press Release

Attorney General Alleges Operator Of Medical Supply Nonprofit Used Charity Funds For Trips, Concerts And Other Personal Expenses

January 11, 2010

Attorney General Richard Blumenthal announced today he is suing the former executive director of a medical supply charity for allegedly diverting approximately $100,000 of charitable funds for trips, concerts, spa services, pet supplies and other non-business personal expenses.

Blumenthal's lawsuit names Tammy Young, the former executive director of Remedy, Inc., an 18-year-old nonprofit in New Haven that promotes recovering unused medical supplies for distribution to other nonprofit agencies. Remedy also aids hospitals, industry, and individuals in distributing unwanted medical devices to nonprofit groups.

The lawsuit, filed in coordination with Department of Consumer Protection (DCP) Commissioner Jerry Farrell, Jr., seeks restitution, penalties and an order blocking Young from further violations.

On numerous occasions beginning in August 2007 through about May 2008, Young allegedly engaged in financial transactions involving Remedy's funds, including:

• Numerous cash withdrawals from ATMs for personal, non-business use;
• Non-business trips to Florida and New Orleans;
• Dining and grocery expenses;
• Non-business pet, spa, insurance, utility, and clothing expenses;
• Non-business gasoline, parking and automobile expenses;
• Non-business purchase of theater and concert tickets; and
• Purchase of tens of thousands of dollars of personal, non-business merchandise from discount department stores.

"Remedy's own executive director betrayed its critical charitable mission with self-serving luxury trips, spa services, concert tickets and department store shopping sprees," Blumenthal said. "This serious misconduct squandered scarce resources vital to distributing free medical supplies for much-needed health care. These financial abuses exploited a charity that promotes health care for families and children by providing valuable unused medical supplies -- sutures, gowns, drapes, gloves and other materials -- to nonprofits. Our lawsuit seeks restitution for Remedy, as well as penalties."

Blumenthal's office began an investigation after receiving a complaint and information from Remedy's founder, Dr. William Rosenblatt, who discovered the inappropriate expenses.