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Case
1i04-cr-00281
Document
43-1
Filed
03/21106
Page
1'1
of
1B
colporatiots
that
had
what
seemed
like
unlimited
resources. We
did
battle to
end
any
nulrber
ol
injuslices
lo
low
income and
average
citizens.
Throughout
my
23
ycars
a1
Public
Action
I
didevert'thing
I
could
to
win
our
battles
firsl
-
and
try
lo
find
the resources
to
pay the
bilis
second.
I
recognize
lbatat
times
I
pushed
the
envelope
in
order
to
achieve
our
n1ission.
I
recognize
now
that
I
certairly
woLrld
have
been
better
off
penonally
had
I
taken
a
more
con.erv"
ire.rpp'oach.
BurI
Jidn
l.
As
a
resull.
we
regularly
facedcash
shoftages.
Sometimes
it
seemed
like
a
daily
crisis.
But
we
hadrvonderfulpeople
working
witlr
us.
On
e
number
ol
occasions,
I
had
to
tell
our'
employees
we $ouLdn't
beable
to
make
pa1'roll.At
times, we
enListed
members
ofollr
boardand
other
wealthy
suppo
ers
to
make
the organization
short
tenn
loans.
And,
on
occasion,
when
I
was
Executive Director
ofPublic
Action, I
admittedly
engaged
in
conducL
to crealefloats
by
engaging
in
what
is commonly relerr€d
to as
check
kttrng
as
a
way
to
span
thc
gaps
in
our
funding.
this.
ilr
cssence,
allowed
the
orgallizalion
acccss
to
whatamounted
tourauthorized
loans
lrom
our
banks.
A.
Thc
1993
Check
KiiingActivily.
December
1991
wassuch
an
occasion.
In
i993,
Public Action
was
dependent
uponmore
lraditional
lbnns
of
fundraising.such
as
door{o-door
and telephone canvassing,
a fundr4isingdinner,
and
charitable contributions
liom
Bealthy
individuals.
Unlbrlunalely,
these
sources
of
funds Nereinconsistent,
and
on
tnultiple
occasions
I
found
thar
the organization
had
lrot altajnedthe
lundraising
goals
we
had
anricipated.
AI
the
time,
I
knew
rhal
PublicAcrion
had
ovef
$800,000ir]
rock-solid
receivables
in
its
pipeline,
including
pledges
tiom
\\,ealrhy
donors,
previouslycommjtred
loans
frorl
individualssympathetic
to
Publjc
Action's
mission,
and
earned
jrcomefrom
organizing efforts that
public
Action
coordinated.
However.
this pipeline
of
funds
was
nor
immediatelyavailable
ropublic
Action
in
December
l99l
inorder
to
meet the
day-to-day
needs
ofthe
organization.
ln
order
to
supplement
this cash-flow
shorrage
-just
as
I
would
do
in
1996
and
lg97
I
createda
lloat
among
Public
Action's
bank
accounts
by writing a
series
ot
circuit
ol
checks
among
lhe
variousbank
accoulrts
uhen
I
knew
these
accounts
didnoi
have enough
flrl)dstocover
each
check.
And.
as
in
1996and 1997,
I
lell
cerlain
that
ro
bankwouid ever
lose anymonev
because
I
knew
ofthe
receivablesin the
pipeljne
and
I
always
knew thatin the
eventot'
a
serious
problern
there
were
many
suppofiers
who
lvereready
ard
willing
rocome
to
the
aide
of
!Te
organrzalr0n,
However,
jn
late
1993.
before
PublicAction
could
convcn
ils
receivables
into
cash,
several
of
the
organizatioD'sbanks
discovered the
tloat
andstopped
paymenton
publlc
Acrion
checks,
rcsulting
in
an
overdratl
jn
some
ot'
our accounts.
I
immediately
coDlacted
the
banks
invoivedand
workedclosely
with
them
to
cover
rhe
overdraft.
*ii"h
-a"
.omp,.r.ry
extinguished
wilhin
a
lew
mo ths.
Inade
sLlre
that
clerJ
bank wasmade
*hole
and,
as
i
knew
al1
along,nobank
suffer.ed
any
loss.
10
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