Former Pierce County nonprofit director charged with money laundering and ID theft
A former executive director of Recovery Cafe Orting Valley has been charged with theft and money laundering.
Pierce County prosecutors charged Rena Kay Thompson with first-degree theft, money laundering and first-degree identity theft April 17 in Pierce County Superior Court.
Thompson, 37, resigned from her position Aug. 12, 2023, according to charging papers.
A not-guilty plea was entered on her behalf during an arraignment April 17. The court ordered her to be released on her own recognizance pending trial, according to court records.
Court records do not yet list an attorney for her.
Recovery Cafe is a nonprofit organization that serves those who are impacted by homelessness, substance use, violence, mental health concerns, trauma and injustice, according to the organization’s website. The organization offers recovery support and referral services, among other things.
The new Recovery Cafe director, Anthony Kagochi, told The News Tribune in an email Monday: “The actions of one individual do not reflect the values or mission of our organization. We want to assure our community, donors, and stakeholders that Recovery Cafe Orting Valley is fully cooperating in investigations and any ongoing legal needs. As this matter is now in the hands of the legal system, we trust that due process will be followed.”
Any financial risks have been mitigated and eliminated, Kagochi said. The organization has been undergoing audits and a forensic audit to make sure it is still “economically viable,” he said.
“We understand that trust is paramount in the nonprofit sector, and we are committed to transparency and accountability throughout this process. We will provide updates as appropriate and remain committed to upholding the highest standards of integrity and ethical conduct,” Kagochi wrote in the email.
What charging documents allege about the former executive director
Court records give this account of what happened:
Thompson oversaw Recovery Cafe’s financial accounts sometime between June 2022 and August 2023.
In July 2022, a bookkeeper noticed anomalies in the organization’s account records and told Thompson about them. The bookkeeper saw unreported accounts and loans, among other things. Thompson then requested that the organization’s board fire the bookkeeper, according to court records.
“We never fired the bookkeeper despite her attempt,” “Kagochi told The News Tribune. “The bookkeeper is still employed by us.”
In May 2023, the organization’s treasurer and executive administrator noticed multiple accounts that had been opened without board approval, court records allege.
The accounts that had been opened included three BECU accounts, two KeyBank accounts, two OnDeck accounts and a Capital One account, according to court documents. Cash withdrawals and payments for personal expenses and former employees had been made on the accounts.
On June 2, 2023, the board asked Thompson to relinquish all account information. She told the board she would cooperate, and that she had “not been as detail oriented” as she should have been, court records allege. She also told the board that it exceeded its authority by not letting her pick those who would help with the review process.
The board asked Thompson to relinquish all account information again on June 20, 2023, because she had not done so. She attempted to justify some of the purchases on the accounts, according to court documents.
On Aug. 7, 2023, Thompson still had not given information for a Capital One account, a BECU account and an OnDeck loan. Around the same time the board was notified about unpaid taxes Thompson was supposed to pay, court records show. Thompson told the board she had already paid the taxes, and that she did not keep copies of the returns.
Thompson improperly used about $190,000 of the organization’s funds, according to court documents. She allegedly paid for multiple credit cards and loans using the organization’s funds.
Court records allege that Thompson took trips to Las Vegas and that she bought a mattress and a pool with the nonprofit’s money. She also allegedly spent over $31,000 on Amazon purchases, over $6,000 in CashApp transfers, and withdrew over $23,000 in cash from the nonprofit.
Additionally, Thompson took out multiple short-term, high-interest business loans under the organization’s name. The loans were over $150,000 with interest rates up to 70 percent APR, according to court records.
Thompson was supposed to pay the city of Orting for the space it leases to Recovery Cafe. City records show that she only made three monthly payments from June 2022 to July 2023.
City Administrator Scott Larson wrote in an email Monday: “The city doesn’t have a comment on this.”
Editor’s note: This story has been updated to specify that the Recovery Cafe’s bookkeeper still works for the nonprofit.
This story was originally published April 23, 2024 at 5:00 AM.
