Insurance to pay $1 million for wages, other debts of veterans nonprofit sued by state
Insurance will pay $1 million to cover debts of a veterans nonprofit in Pierce County that was sued by the state, including unpaid wages, the Attorney General’s Office said Tuesday.
The state sued Veterans Independent Enterprises of Washington and its leaders in 2019, alleging organization misused hundreds of thousands of dollars.
Now, as part of the resolution of that lawsuit, a receiver who the court put in charge of the nonprofit will use the money from its insurance company to pay debts. Assets that are left will go to another organization.
“The receiver, Daniel Bugbee — himself a veteran — will use the $1 million to settle VIEW’s estate and pay creditors, including wage claimants,” a press release from Attorney General Bob Ferguson’s Office said. “Because of the Attorney General’s Office lawsuit, VIEW will be in a position to pay all employees the wages they are owed.”
The $1 million is the policy’s maximum. There are 74 veterans with claims for a combined $310,489.37, according to the state.
“Bugbee began the winding-up process by transitioning VIEW’s operations to Nine9Line Veterans Services, another Pierce County nonprofit with a similar charitable mission,” the press release said. “Nine9Line already hired much of VIEW’s former staff and accepted oversight of VIEW’s transitional housing for veterans.”
In addition to housing, VIEW offered veterans job opportunities, “primarily those who are unemployed, recovering from addiction or have a criminal record,” the press release said.
The lawsuit alleged VIEW’s former operations manager, Rosemary Hibbler, misappropriated funds. She began working with VIEW in 2013.
She and former VIEW board members Donald Hutt and Gary Peterson, who were also named in the lawsuit, are not allowed to work in the state’s charitable sector in the future. The board members’ “neglect allowed Hibbler’s misconduct,” the press release said.
A stipulated judgment entered against Hibbler last month said in part:
“During her employment with VIEW, Hibbler misappropriated approximately $192,314 by using a debit card to withdraw (a) funds from VIEW’s corporate bank account(s) to purchase gambling credits at Pierce County casinos and (b) cash from ATMs located in casinos. During the time Hibbler was responsible for managing VIEW’s accounts, she withdrew an additional $83,937 in cash from ATMs, without providing accounting or other records indicating how such funds were utilized for VIEW’s benefit or operation.”
She received more than $850,000 from the nonprofit’s bank accounts, the judgment said.
The court filing notes that Hibbler “does not admit the truth of the Findings of Fact and Conclusions of Law herein but agrees that sufficient evidence exists to support” them.
It also says that the judgment “resolves and adjudicates” her counterclaims.
A counterclaim Hibbler filed against the state in September alleged in part: “As a woman of color with a criminal history, Hibbler has been marginalized by society and faces barriers in many aspects of life. The State has compounded and exacerbated the challenges she faces by conducting a far-reaching investigation based on the allegations of a disgruntled employee who had a history of harassing Hibbler because of her race.”
The Attorney General’s press release said that: “From 2007 to 2011, Hibbler was convicted of ten counts of felony theft or forgery. In addition, multiple civil judgments were entered against her. Before she was hired by VIEW, Hibbler was fired multiple times over allegations that she misappropriated her previous employers’ funds.”
This story was originally published January 12, 2021 at 1:38 PM.
