by Stavros H. Papagermanos
NEW YORK –The Mastoras Audit Committee,on Oct. 31, 2022, presented their findings in the form of a “USB Flash Drive” to the two warring factions of the Federation of Hellenic Societies of Greater New York, Inc. They handed a copy of the USB drive to Demos Siokis representing the administrating committee of the former presidents, and to Yiorgos Georgopoulos, representing the council elected in the so-called “sidewalk” elections of Sept. 19, 2021. The Georgopoulos side met on Nov 17, 2022, and decided to release the USB Drive to the Media.
The Mastoras Committee, sometimes referred to as the Independent Audit Committee, and self-proclaimed in a document contained in the USB Drive, as the Independent Financial Committee is comprised of Kostas Mastoras, Yiannis Stroumbakis and Achilleas Lygeras. The Committee was charged, according to their report, with auditing and investigating in depth, the finances of the Federation of Hellenic Societies of Greater New York, Inc.
The USB Drive contains a Word document in Greek, typed in all caps and addressed to the “Esteemed Gentlemen, Representatives of the Federation of Hellenic Societies of Greater New York,” and in its first two paragraphs states, in translation:
On behalf of the independent financial committee, thank you for responding to our call tonight, for a first official update on the financial audit of the last six years.
The mandate you gave us was clear: an in-depth investigation so that the truth shines through, and if there are any responsibilities, they are assigned accordingly and there are sanctions.
ΕΚ ΜΕΡΟΥΣ ΤΗΣ ΑΝΕΞΑΡΤΗΤΗΣ ΟΙΚΟΝΟΜΙΚΗΣ
ΕΠΙΤΡΟΠΗΣ ΣΑΣ ΕΥΧΑΡΙΣΤΟΥΜΕ ΠΟΥ ΑΝΤΑΠΟΚΡΙΘΗΚΑΤΕ ΣΤΟ ΑΠΟΨΙΝΟ
ΚΑΛΕΣΜΑ ΜΑΣ ΓΙΑ ΜΙΑ ΠΡΩΤΗ
ΕΠΙΣΗΜΗ ΕΝΗΜΕΡΩΣΗ ΣΧΕΤΙΚΑ ΜΕ ΤΟΝ ΟΙΚΟΝΟΜΙΚΟ
ΕΛΕΓΧΟ ΤΩΝ ΤΕΛΕΥΤΑΙΩΝ ΕΞΗ
ΕΤΩΝ .
Η ΕΝΤΟΛΗ ΠΟΥ ΜΑΣ ΔΩΣΑΤΕ ΗΤΑΝ ΞΕΚΑΘΑΡΗ :
ΕΛΕΓΧΟΣ ΣΕ ΒΑΘΟΣ ΩΣΤΕ ΝΑ ΛΑΜΨΕΙ Η ΑΛΗΘΕΙΑ ΚΑΙ ΑΝ ΥΠΑΡΞΟΥΝ ΤΥΧΟΝ ΕΥΘΥΝΕΣ ,ΝΑ ΑΠΟΔΟΘΟΥΝ ΑΝΑΛΟΓΑ ΚΑΙ ΝΑ
ΥΠΑΡΞΟΥΝ ΚΥΡΩΣΕΙΣ .
Thereare 54 files in total contained in the USB Drive (at least as it came to us), one is the MS Word file mentioned above; 13 Excel Files, mostly exports from the accounting software QuickBooks; 32 PDF files which are various images of checks, wire transfers, invoices, notes, etc.; one photograph of a phone screen and 7 photographs of the people of the audit committee and the space they were working in.
According to the assertions of this informal report, and the total contents of the USB Drive, during the period of the last 6 years this committee looked at, there was clearly gross mismanagement of the finances of the Federation, clear indications of discrepancies and improprieties regarding the handling and disbursement of funds, potential malice and fraud. Some of the improprieties rise to a level that could cause a criminal investigation.
The informal report (presumablyis the text read by Mr. Mastoras at the Minoas Club meeting of Oct. 31), mocks a previous internal audit committee (led by Spyros Pyrgiotis) which had examined the finances of 2018, 2019 and 2020, and reported that all was well and no impropriety was found, and states:
I believe that no one amongst you believes that (that all was well), and that’s why you’re here tonight to confirm your suspicions, your suspicions that something has been going wrong for the last few years, that something was wrong.
In the last months we have heard and learned a lot from people who had the courage to come to our committee and testify facts with solid evidence, without fear or prejudice, like Mr. Dimitrios Paliouras, former treasurer of the Federation.
The Committee has in its possession only named and signed testimonies.
So let’s get to it. The truth is that some in the past administrations made sure to leave behind literally scorched earth so that an audit was not possible. As if they had something to hide.
A little further, the same document states:
So let’s assume that because we are a non-profit organization and because there are already lawsuits on both sides, the Attorney General orders a formal audit of the Federation’s finances.
I have personally experienced four IRS audits, and I can assure you that it is a very difficult process. The first thing the authorities would ask for in a potential audit is records from the last six years. Without them, the Federation loses its non-profit status and fines are incurred.
There are several disturbing examples among the included documents. Most troubling of which are two typed and unsigned pages referring to cash donations/transactions. One titled “History of Ioannis Poumbouras Donation” (Istoriko Doreas Ioanni Poumboura) and the second “History of the Ivan Savidis Donation” (Istoriko Doreas Ivan Savidi).
The text of the first one reads in translation:
Mr. Poumbouras, grand marshal of the 2018 parade had pledged a donation of $50,000.
Together with Thanassis Aronis, I, as president and Mr. Aronis as treasurer we received $20,000.
Which were given:
$16,000 (in Greek: odoiporika evzonon)
(it is unclear what is meant: incidentals? per diem expense?, other fees for the Evzons?)
$3,000 given to Philip Christopher for tips of waiters and music at Hilton
$ 1,000 for the secretary and other petty expenses
On 5 June 2018, Mr. Meimaroglou received $3,000 on behalf of Mr. Poumbouras
In order for the Federation to receive the rest of the amount, I traveled to Athens in September and received from Mr. Poumbouras $12,700, which I gave to the Treasurer Mr. Aronis and he to the President Kleanthis Meimaroglou.
Later I went to Greece again for the sole purpose to receive the rest of the amount and I received $14,300
These monies were given:
$11,300 (in Greek: odoiporika evzonon) (it is unclear what is meant: incidentals? per diem expense?other fees for the Evzons?)
$3,000 given to Philip Christopher for tips of waiters and music at Hilton
$ 1,000 for the secretary and other petty expenses
Similar is the other unsigned document for the Ivan Savidis cash donation of $70,000.
There are also very troubling indications of potential illegal acts, such as the example of two checks issued to a hotel without an invoice, the first for $142,496.28 and a second to the same payee for $23,178.78, amounts which were reportedly reimbursed to the Federation.
There are many documented wire transfers to various entities in Greece. These include among others a Computer tech company in Argostoli for $13,694; a Committee for the renovation of the Church of Agios Nikolaos in the village Agia Thekli for $27,013(not known where exactly); to an entity in Greece called Panellinia Omospondia PO for $9,950; two wire transfers to individuals in Chios for “Police Truck repair” in the amounts of $1,803.83 and $1,683.93; to another entity only known as GEETHA for $14,950.01; and others. Worth noting are payments by check made to “Cash”; a payment to a software company for $9,855 for financial software that was never provided or used by the federation; arbitrary disbursements to philanthropic organizations, payments labeled as “credit card reimbursements,” and others.
The informal report in the USB Drive draws some conclusions at the end of the document which are included below in translation and without comment:
The Federation failed beyond a shadow of a doubt to manage its finances as required by New York State law for a non-profit organization, the State granted to the Federation the privilege of collecting millions of dollars and not paying taxes, on one condition, to manage its finances as defined by the law. In the opposite case, privileges are suspended and fines are also incurred.
Those who governed the Federation in recent years completely ignored all of the above and ruled with the mentality of Erdogan Sultan, that is anyone who dares to speak is imprisoned; and of course withabsolutely no controls from anyone.
On 11/16/17 the then President and then Treasurer of the Federation issued a check for $142,000 to the Sagamore.
We were surprised by the amount of the check, as well as the fact, that there was no decision of the general assembly.
We were informed that the Sagamore is a luxury hotel in Lake George about five hours from NY, where an event of the Nafpaktia Association Eleftheriani took place. On 11/28, twelve days later, the same association deposited into the Federation’s bank account exactly the same amount, for which a tax exemption form was issued by the Federation’s treasurer.
In this way the Federation “facilitated” the Association with its money, and helped it save $12,468, but also put itself in mortal danger, because laundering money from a non-profit organization entails lock-up, heavy fines and jail time for those responsible for committing the crime. The exact same offense was repeated the following year for a lesser amount.
Unfortunately, this has been the way and the mentality that the Federation was governed in recent years and the fact that we exist today and we are in this building is a miracle. The conclusions are yours to make.
