According to Philadelphia Magazine, Kappa Alpha Psi fraternity member and former finance director, Curtis Anderson has been caught in a financial scandal after admitting that he embezzled over $1 million funds.
Anderson, who served as a finance director at the fraternity’s international headquarters in Philadelphia for 20 years, was fired three days after admitting to his fraudulent activities.
Investigations from agencies such as the Secret Service and FBI found that that Anderson had been embezzling money for over a year. Anderson cashed checks for almost $400,000 from the fraternity’s Santander bank account and at least $978,000 from the fraternity’s Wells Fargo account.
Suspicions arose when Santander Bank contacted John Burrell, the fraternity’s executive director about “suspicious activity.”
Once Burrell received the notice, he and Thomas Battles, the fraternity’s national president visited the bank to address the issues. While there, Anderson walked through the bank’s door, unaware the two would be there.
According to investigators, both Burrell and Battles questioned Anderson about the checks that were written out to him and he allegedly cashed. And according to court documents, Anderson admitted to his illegal activities, revealing that he had a gambling and drinking problem.
Court documents revealed that Anderson was only allowed to deposit checks into the bank accounts and checks were supposed to be signed by two officials, but instead, the checks had only one signature.
Anderson went as far as cashing the checks, and then deposit them into his own bank account. When authorities visited Anderson’s office, they found check stock paper and signature stamps for the fraternity’s official seals. Authorities have plans to further search Anderson’s former office through a search warrant.
Anderson has yet to be arrested or charged with a crime, but authorities say that they have reasonable grounds that wire fraud and bank fraud crimes have been committed. A federal grand jury is set to investigate.