The CEO of a San Francisco nonprofit came clean to his employees this week about financial mismanagement of their retirement benefits.
Instead of depositing contributions into their accounts for the past eight months, that money has been going elsewhere.
The San Francisco Pretrial Diversion Project provided NBC Bay Area with the following statement: "As evidenced by the email to my co-workers and the next steps outlined in that correspondence, San Francisco Pretrial Diversion Project has been transparent about this situation and will continue to provide updates. We are currently identifying additional funding to make all contributions, including agency matching contributions and earnings our colleagues would have accrued during that time as determined by our retirement plan carrier. We are 100% committed to making employees whole and aggressively exploring solutions. We are like many non-profits trying to keep up with the cost of doing business while paying our staff livable wages with the benefits they deserve. My co-workers are our agency lifeline who care for some of our most vulnerable citizens, with published outcomes demonstrating their positive impact. It is heartbreaking to be in this position. SF pretrial is mandated to supervise and serve all individuals referred to us from the County Jail. As San Francisco focuses on public safety and the jail population increases, our work to support client success and protect public safety increases proportionally while the financial resources we receive do not. We have been audited by our City & County funders and continue to work with them closely, opening up our books and welcoming their support and inquiries. They have found no evidence of malfeasance or egregious spending. This is due to the challenges of operating a small business in San Francisco and keeping up with an overwhelming and underfunded workload."
NBC Bay Area's Emma Goss reports outraged employees just filed a legal complaint. Watch her report in the video above.
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