At the end of September 2006 - when it told the
Internal Revenue Service it had raised $43,500 since being formed - the Fort Wayne foundation had less than $2,000 in its bank account, and
Archey said all of that would go toward running the foundation's Let's Talk program for area children.
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Archey, executive director and board president of the Archey AIDS Foundation, said the accusations raised by people involved with the group are not true.
"Yes, some i's weren't dotted, some t's weren't crossed,"
Archey said.
"But all money has been accounted for. … There's been nothing misappropriated."
Archey, who started the foundation in 2002 after going public with the news that
he has been living with AIDS since the 1980s, says donors should not worry about the financial questions being raised about the agency and that new policies are being put in place to prevent further problems.
It is unclear who approved the new policies or how they will be enforced, because Archey is one of only two board members, and the other member said there has not been a meeting in a year.
Ron Muckway said
he joined the foundation's board as treasurer in August, only to discover that
Archey was using agency money to pay
his personal bills, including a cable TV bill, credit cards and car insurance.
And though
Archey said the Let's Talk program continues at the New
World Church Outreach Center on Miner Street, Muckway said the program ended months ago.
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Archey is a pastor at New World Church; he said he gets no income from the foundation.
Archey said Muckway was never a board member and that Muckway was only asked to help straighten out the foundation's finances because
Archey knew
he needed assistance.
Instead of helping,
Archey said, Muckway accused him of stealing.
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I had nothing to hide; it was no secret I needed help,"
Archey said.
"In return I get this."
Muckway said
he tried to help and showed
Archey how to properly handle the foundation's expenses but that
Archey refused and continued to use foundation money for himself.
According to Archey, Cathy Wilson is the board's treasurer.
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Wilson told
The Journal Gazette that
Archey has kept the foundation's financial information secret from her, used foundation money for personal expenses and forged her signature on bank documents.
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When it applied for a $20,000 grant last year from the
Paul Clarke Foundation, however,
Archey stated in the application that the group has an annual budget of $85,000.
Archey said the $85,000 figure was a mistake, that
he thought the application was asking for a projected budget if it got the grant.
No grant was awarded.
According to bank statements for June, August and September provided by Muckway, the foundation made more than $700 in payments to
Donald Archey's Capital One credit card.
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Archey said the credit card payments were for foundation expenses that
he put on
his personal credit card.
"That was ignorance on my part,"
he said.
"It's not illegal, but it don't look good."
The $147 Comcast bill,
he said, was to pay for a package deal that bought telephone, cable TV and Internet service.
The telephone and Internet are for foundation use at
his house.
The cable portion of the bill
he reimbursed to the foundation.
"That has been cleared up,"
Archey said.
"Because it was a package deal, I didn't break it down properly. … It wasn't anything conniving or stealing, it was just the paper trail wasn't there."
The monthly payments to Geico car insurance,
Archey said, are for the foundation's van and not
his own.
Muckway contends
Archey told him the insurance was for both vehicles.
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Archey said
he has since learned how to document expenses and the foundation now has policies in place to ensure there are no financial questions raised.
"I just was not that detail-oriented,"
he said.
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Archey said
he couldn't remember when the last board meeting was but said it has been less than a year.
When asked about Wilson's contention that the board has not met in a year,
he said, "
she's missed some meetings."
He declined to name the other board members, maintaining that the board will be expanded and
he does not want to name the new members because they haven't yet been elected.
He then said
he was reluctant to name current members because, "some of them won't be on the board" after it is revamped.
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Archey said the board has struggled because its members are inexperienced in operating non-profits.
"I take responsibility for that because I lead it,"
Archey said.
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For Archey to be president of the board - especially a small board - could be a major problem.
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Archey says the money raised over four years for the two shelters for HIV-positive people was never there;
his prediction the shelters would open within a year was based on donations that were pledged but never fulfilled.
"I made those comments when I was under the impression that everyone who said they would help, would help,"
he said.
"I've learned."
According to documents the foundation filed with the
IRS in October regarding its non-profit status, it has had only $43,500 in income since it was formed in 2002, with three out of five years bringing in less than $10,000.
In the meantime, the foundation has spent nearly everything it has taken in, and
Archey said the dream of building shelters now rests on the success of a book
he's writing, called "Pastor, how did you get AIDS?
That book, however, is dependent on
Archey paying up to $4,000 of the publishing cost.
The foundation has two bank accounts - one for day-to-day expenses and one for grants.
Wilson said the grants account is new - it was created without her knowledge and that
Archey forged her signature to open it.
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Archey said
he opened the account because
he got an e-mail from someone in Nigeria saying they wanted to give the group $2.5 million and needed the foundation's bank account number to deposit the money.
To be safe,
Archey said,
he opened the grant account to ensure the Nigerian donor would not be able to withdraw foundation money.
When
he couldn't get ahold of Wilson,
he said,
he forged
her signature on the account paperwork.
"It was to open up that account to bring that money in,"
Archey said.
"That account has never been touched."
The Nigerian offer turned out to be bogus; the ruse to get account numbers is one of the most popular on the Internet.
Muckway said the foundation's other account is often raided by
Archey.
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Muckway said
Archey told him it was to reimburse him for travel to the
state board of health's HIV Prevention Community Planning Group meeting in Indianapolis.
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Archey told
The Journal Gazette the gas expenses paid by the foundation were for other trips and not those reimbursed by the state.
Archey said the financial questions are not a case of him using foundation money for
his personal expenses.
"It's just the opposite.
I'm paying AAF bills,"
Archey said.
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The concert was to be a fundraiser for the foundation but did not make any money,
Archey said.
And Donald Archey owes money, as well.
Although the
IRS granted the Archey AIDS Foundation tax-exempt status in October,
Donald Archey owes the
IRS nearly $35,000.
Federal tax liens filed in Allen County show Archey owes $25,611 in back taxes for 1996 and 1997.
Another lien filed in Los Angeles County is for $9,337.
Archey said the fact that
he owes thousands in back taxes should not worry donors to the tax-exempt organization
he runs.
"That's me.
That's not the
Archey AIDS Foundation,"
he said.
Archey explained that
he is on medical disability because of
his AIDS and has no way to pay the debt.
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The Drug and Alcohol Consortium of Allen County made a $3,500 grant to the foundation in June that
Archey said was used to pay for the Let's Talk program.
Archey said the money paid for food for the children in the program, as well as activities and equipment for the program, but Muckway said the Let's Talk program ended in September and that the only activity the foundation has now is an after-school program that is little more than games and food.
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Archey said Let's Talk has been expanded to encompass the after-school activities.
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Archey was arrested in Allen County in September 2003 on a fugitive warrant out of Georgia and held without bond, but Georgia officials chose not to extradite him, according to court documents.
Archey said the warran