After almost two years, legal proceedings regarding embezzlement in the LGBT Center of Raleigh’s organization are over, finally putting an end to the scandal.
“For over 15 years, we have worked hard to fulfill our mission, making a difference in the lives of historically underrepresented youth, families and adults,” LGBT Center of Raleigh Executive Director Kori Hennessey said in a statement to Qnotes. “The embezzlement of funds … threatened to undermine our ability to fulfill this mission and jeopardized the trust and confidence of our supporters.”
In 2022, the center announced its former executive director Lindsey Lughes was terminated after “unusual financial activity” in the nonprofit’s finances were found. Though Lughes was fired in 2021, the reason wasn’t disclosed until 2022 when WRAL made a public records request.
Then Interim Director Dolph Goldenburg said the organization was going to share the information “after charges had been filed because we do not want to interfere with the investigation.”
According to the indictment from 2023, Lughes embezzled over $126,000 from the LGBT Center from June 1, 2019 through her suspension on June 22, 2021. She did this via unauthorized bonus compensation, issuing payments to another member of Lughes’ household and credit card purchases.
Lughes pled guilty to one count of embezzlement just last week on May 1, and as a part of her plea, she has to pay over $127,000 in court fees and restitution. She was sentenced to a minimum of six months with a maximum of up to 17 months in the N.C. Dept. of Adult Correction by Hon. Bryan Collins. Lughes will also have to complete 200 hours of community service and report to a probation officer for over 36 months, according to the sentencing document provided by the Wake County Superior Court.
After Lughes was terminated, Dolph Goldenburg said the LGBT center “implemented stricter internal controls,” such as forming a finance committee including two Board of Trustees members and having a certified public accountant review all of its finances during the time Lughes was executive director.
Hennessey, the current executive director, says the LGBT center has worked to “strengthen” its relationship with the community after breaking the public’s trust.
“While the road to rebuilding will continue to be challenging, we are unwavering in our resolve to emerge stronger and more vigilant than ever before,” they said. “As we move forward, the LGBT Center of Raleigh remains steadfast in our commitment to transparency, accountability, and integrity. We will continue to uphold the values that define us and to work tirelessly to make a positive impact in the lives of those we serve.”