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Jewish charity comes clean under interim leader

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By MARK DOUGLAS

mdouglas@wfla.com

Published: November 4, 2009

ST. PETERSBURG - Ray Gadd, the interim director of Gulf Coast Jewish Family Services, says it's time for the $32 million-dollar-a-year charity to move beyond the forced resignation and suicide of its former director.

But first, Gadd said, he has to expose some secrets from the past.

They include a sexual harassment payoff involving the former director, Michael Bernstein; repairs performed on Bernstein's home at the charity's expense; and a $108,000 overpayment to Bernstein that went unnoticed for months.

Gadd, a former assistant superintendent for the Pasco County school district, has been on the job since Monday but by Tuesday afternoon had drafted a two-page summary outlining past improprieties. The letter will be sent to charity staff, board members and funding sources.

"I don't think anything we've found will endanger our tax-exempt status," Gadd said. "I think what it has affected, to some extent, is our credibility with funders."

Bernstein resigned suddenly Oct. 14 from the charity where he started 31 years ago. One week after his resignation, Bernstein fatally shot himself at a Super 8 motel in Valdosta, Ga.

On Tuesday, Gadd said charity Chairman David Abelson and the board hired a former FBI investigator last summer to look into anonymous allegations of fraud, embezzlement and the unauthorized repairs on Bernstein's home.
Gadd said the investigator did not find evidence of fraud or corruption, but added that an outside investigation by auditors remains open.
Gadd said the charity last year did pay a secretary with Gulf Coast Jewish Family Services $25,000 to settle her allegation of sexual harassment by Bernstein, even though he never admitted wrongdoing.

In a rambling "confidential note" that Bernstein e-mailed to board members Oct. 11, three days before his resignation, Bernstein called his leadership of the charity "an incredible journey."

Bernstein said, "I voluntarily took a lie detector test on major allegations and passed. I am happy to take one on every allegation."

After elaborating on a number of internal disputes and mistakes involving charity personnel, Bernstein wrote, "Please keep this letter and all issues surrounding me confidential."

But a few lines later he closes his letter with another sentiment: "I do believe if something is truthful it can be said before one or 100 with no need for secrecy."

When auditors complete their review of financial records, Gadd will make the findings public, he said.

Mark Douglas can be reached at (727) 451-2333

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