WLBT 3 - Jackson, MS: Secretary of State wants to close charity for fraud

Secretary of State wants to close charity for fraud

By Roslyn Anderson - bio | email

RIDGELAND, MS (WLBT) – The Secretary of State's Office investigation into the Fine Arts Institute of Mississippi's operations resulted in proposals to close the charity Monday.

The bingo funded non-profit could soon close.

The Secretary of State's Office has proposed a cease and desist order for FAIM or the Fine Arts Institute.

It wants to revoke FAIMs registration and impose administrative penalty against executive director Bill Murphy.

The state agency claims Murphy and FAIM failed to keep proper books and records, committed fraud and misrepresentation, used charitable funds for a non-charitable purpose and paid Murphy too much in salary.

Murphy declined to comment Monday, but in October he denied any wrongdoing.

"We haven't stolen money or anything like that it's a debate over what is proper expenses for the bingo hall and what's proper expenses for the charity," said Murphy.

FAIM is funded through the Boxcar Bingo Parlor in Olive Branch.

"The questions that were in my mind were the misappropriations of funds," said FAIM former Director of Operations Sabrina Wright.

Wright took her concerns to the Secretary of State's Office.

Murphy said she has been indicted for embezzling from the organization.

Wright believes it's in retaliation for reporting the discrepancies and has filed a wrongful termination lawsuit.

The Secretary of State's Office said Murphy has time to reach a settlement.

"We're in the process of trying to come to a settlement with the Secretary of State's Office and we've made some good progress with that, and they're doing their job and their job is to come in and evaluate what you're doing. They have some new standards," said Murphy.

According to the Mississippi Gaming Commission, in 2007 the bingo hall took in $4.5 million dollars, but FAIM only spent $173,000.00 or four percent on charitable contributions.

The state gaming commission did not renew Boxcar Bingo's license, but it can continue to operate while Murphy appeals.

 ©2009 WLBT. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.