Page 2 THE SAUGUS ADVOCATE – Friday, April 19, 2019 “Not less than $515,000” By Mark E. Vogler B OSTON – Saugus Selectman Mark Mitchell, while working as the controller of the Boston Center for Adult Education (BCAE), misappropriated more than a half mildine drink gather enjoy THE NORTH SHORE'S HOTTEST NIGHTCLUB! THE BLUSHING BRIDES IN THE MUSIC HALL Friday, April 19 BACK TO THE 80'S EXCLUSIVE AREA APPEARANCE! Saturday, April 20 lion dollars of the nonprofit corporation’s money over a two-year period, the school alleges in documents filed in Suffolk Superior Court. A forensic accounting firm hired by BCAE last September identified multiple instances of checks being issued to Mitchell personally which were not supported by invoices or other documentation, according to the 13-page civil complaint. In addition, the complaint notes, the accounting firm of Marcum LLP identified other checks “being issued to organizations which are unaffiliated with BCAE but with which Mr. Mitchell is involved, including a Saugus baseball team which Mr. Mitchell manages and other Saugus-based baseball organizations.” The value of the misapproThe Ultimate Rolling Stones Tribute IN THE MUSIC HALL Friday, April 26 NO SHOES NATION The Ultimate Kenny Chesney Tribute Experience! priated checks is “not less than $515,000” for the period of July 11, 2016 through Sept. 7, 2018, but BCAE suspects there could be more money involved,” states the lawsuit, which names Mitchell and two other employees as defendants. “On Oct. 5, 2018, Mr. Mitchell admitted to Marcum LLP that he has been misappropriating funds from BCAE since 2014,” the court complaint notes. BCAE, which is located in a Saturday, April 27 A Benefit for Breathe Easy WILDFIRE Friday, May 3 Country & Comedy AYLA BROWN & RON BELLAMY Saturday, May 4 New England's #1 Aerosmith Tribute Band DRAW THE LINE with Comedian DAVE RUSSO Friday, May 10 two-story building at 122 Arlington St., was founded in 1933. It touts itself as a school that provides “educational opportunities for adults that foster personal and professional development, enhance a sense of community, and encourage social responsibility.” It seeks “support of Boston’s educational and neighborhood communities” while offering a wide range of programs and courses aimed at adults. Eagles Musical Tribute Experience 221 Newbury Street, Danvers For Tickets call (978) 774-7270 or www.breakawaydanvers.com Mitchell response calls allegations “frivolous” Mitchell did not respond to a message left by The Saugus Advocate on his cell phone to comment on the allegations. Neither did his lawyer. But Mitchell is contesting the lawsuit. In response to BCAE’s amended complaint, Peabody A tt orney Wil - liam F. Delaney, who is representing Mitchell, filed an answer to the court denying the allegations that he misappropriated any money. That document called BCAE’s claims “frivolous” and added that BCAE “is acting in bad faith and with unclean hands.” Mitchell’s answer added “That the plaintiff’s alleged damages, if any, was caused by a party for whose conduct the defendant is not responsible.” Mitchell notes on his LinkedIn site that he worked as controller of BCAE from February 2010 to September 2018. BCAE’s complaint said BCAE’s Executive Director, Susan B. Brown of Marblehead, hired Mitchell in around 2011 as the controller. Mitchell and Brown of Marblehead became the subject of an investigation by the school’s board of directors last August when questions arose about their handling of the organization’s finances. “Within the past three weeks, the BCAE board of directors, much to its surprise and dismay, discovered serious misappropriation of funds from its bank account which at all relevant times were controlled by Ms. Brown and Mr. Mitchell,” the introduction of the Oct. 5 complaint alleges. “These misappropriations included the discovery of cashed checks that the two defendants had written to themselves and the third defendant, Ms. Kalfian, who upon information and belief resides with Ms. Brown.” BCAE expects an increase in “stolen” money The board of director’s probe led to the two employees being relieved of their duties and the hiring of Marcum LLP to examine BCAE’s bank accounts and related financial records, which “determined that the three defendants have stolen at least $715,000 from BCAE’s bank accounts for the period of July 11, 2016 to Sept. 13, 2018,” according to the complaint. “Further analysis is being completed for the period priLOOKING WEARY: Saugus Selectman Mark Mitchell looks down as he signs the steel beam at last Friday’s “Topping Off” ceremony at the site of the future Saugus Middle-High School. A lawsuit filed in Suffolk Superior Court in Boston accuses Mitchell of “misappropriating” $515,000 of funds from the bank account of the nonprofit Boston Center for Adult Education, where he worked more than seven years as the controller. or to July 11, 2016 and the total amount stolen is expected to increase,” it continues. The civil complaint filed by BCAE names Mitchell, Brown and Kalfian – a former employee who was paid for marketing-related services in the past – as defendants. It seeks a judgment of $175,000 or greater against Kalfian for funds she received for the period of July 11, 2016, to Sept 13, 2018. The complaint alleges that she performed “little or no marketing service” since 2014 although she received payments through last September. “The Plaintiff has referred these matters involving defendants Ms. Brown, Mr. Mitchell and Ms. Kalfian to law enforcement and is cooperating with the Suffolk County District Attorney’s Office with respect to any criminal actions that may result from the events described herein,” the BCAE complaint states. Renee Nadeau Algarin, the deputy press secretary for the Suffolk County District Attorney’s Office, said this week that no criminal charges have been filed against any of the defendants named in the lawsuit. Algarin said the District Attorney’s Office cannot comment on whether there is any ongoing investigation of the allegations. Meanwhile, the judge assigned to the case has allowed attachments to be placed on Mitchell’s house at 3 Lisa Ln. and his two bank accounts. The judge also allowed attachments on Brown’s bank account and house at 6 Hewitt St. in Marblehead.
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