Grads Indicted in Charity Rip-off

After a year-long investigation, a grand jury indicted two former Harvard students Wednesday morning for stealing $132,000 raised for children's cancer research through an Eliot House ice skating show.

Charles K. Lee '93, who co-chaired An Evening with Champions in 1992, has been charged with 58 counts of larceny over $250. and eight counts of larceny under $250.

David G. Sword '93, the treasurer of the 1991 and 1992 shows, was indicted on one count of larceny over $250 for taking $12,000.

Larceny over $250 is a felony punishable by up to five years in prison, while larceny under $250 could carry up to 18 months in jail.

Jill Reilly, a spokesperson for the district attorney, said Lee and Sword allegedly used the money for personal expenses, such as telephone bills, and other non-event related purposes.

Reilly said Lee spent a significant portion of the $120,000 he allegedly took on clothing from stores such as Saks Fifth Avenue and Eddie Bauer.

Lee's attorney said his client would plead not guilty to the charges. Sword's lawyer did not return several phone calls.

In the wake of the indictment, Lee has resigned from his job at CUC International, a membership services company in Connecticut, according to a report in today's Stamford Daily Gazette.

An employee answering the phone last night at the company refused to comment on the report.

Sword could not be reached for comment, and his parents said that on the advice of legal counsel they are not granting interviews.

An Evening With Champions is an annual event featuring Olympic and other world class ice skaters.

The event is intended to raise money for the Jimmy Fund, which provides funds for research and treatment of children at the Dana-Farber Cancer Institute.

Reilly said yesterday that the district attorney will try to make the defendants reimburse the Jimmy Fund if they are indeed guilty.

"This indictment clearly illustrates that fraud, theft or any misuse of charitable monies cannot and will not be tolerated," Mike Andrews, executive director of the Jimmy Fund, said in a statement.

"The true victims of this crime are the Jimmy Fund children and adults for whom these funds were intended," Andrews added.

A Paper Trail

The Middlesex District Attorney's office has been investigating the case since last summer, when the money was discovered missing.

Lee and the other organizers of the fall 1992 Evening With Champions show had promised the Jimmy Fund a donation of more than $100,000.

To make the pledge official, they had held a ceremony of Eliot House where a commemorative check for more the $100,000 was presented to Andrews. No real money changed hands then , but the co-chairs of the 1993 show, Jonathan S. Kolodner '94 and Kelly L. Morrison '94, were expected to deliver about $160,000 to the cancer charity when they took over the summer.

But shortly after they assumed responsibility, Kolodner and Morrison discovered that the money was gone.

Harvard's attorneys were notified, and the department of internal audit identified the $160,000 as missing.

Reilly said the district attorney's office followed a "paper trail" to gather evidence that Lee and Sword took the money.

She said District Attorney Tom Reilly utilized information from a University audit, as well as other financial records.

Reilly said a trail of money, checks and bank statements revealed a pattern of money withdrawn from the Evening With Champions fund into the separate accounts of Lee and Sword.

The district attorney's office found 83 checks payable to Lee from the Eliot House Jimmy Fund account, Reilly said.

In Sword's case, Reilly said, most of the money allegedly taken was c ash and thus more difficult to track, so the attorney decided to prosecute on only one count.

But Reilly said the district attorney's office found 27 checks payable to Sword, as well as found money market transfers.

About $30,000 of the missing money is unaccounted for, Reilly said.

The arraignment date for Lee and Sword has not been set, but will likely be early next month, Reilly said.

James W. Lawson, Lee's attorney, said his client would voluntarily surrender and enter a plea of not guilty.

Lawson declined to comment on how Lee plans to defend himself from the charges.

Asked if his client would stick to his original story--that he used the money to pay off old Evening With Champions debts--Lawson said he thought it was "premature to make those observations."

In its 24-year history, the Evening With Champions program has raised $1.5 million for the Jimmy Fund.

Last year's show, held in the wake of the district attorney's investigation, sold out and raised $125,000.

"He Wanted to Epitomize Eliot House"

Eliot is known as the house that is "more Harvard's social elite in the decades prior to randomization, the Eliot House stereotype is of old money and lavish spending--and Lee very much w anted to fulfill that image, friends said.

Friends interviewed by the Crimson agreed that Lee--an only child who grew up in a middle-class home in Tenafly, New Jersey--enjoyed life's finer things.

"He wanted to epitomize Eliot House," said one friend, speaking on condition of anonymity.

Asked if this urge was exceptionally strong, the friend said, "Yes, I thought so."

Former Crimson president Julian E. Barnes '93, who roomed with Lee for four year, said Lee "did kind of live a stylish life."

"He spent a lot of money," Barnes said, "but in no way did he spend $120,000."

Barnes said Lee bought a "very top of the line" stereo system during his junior year--the first year the alleged larcenies occurred.

But Barnes said it was during that year that "family money became available to" Lee.

Lee also took a part-time job at the Andover Shop that year.

Sword's friends said the Saskatchewan native was quiet and honest at Harvard.

He dedicated much of his time to charity work,participating in Phillips Brooks House in additionto Evening With Champions.

Sword helped found Serve Canada, a privateyouth service in Toronto. He resigned from thegroup last summer when word of a district attorneyinvestigation broke.

Friends of the two former Harvard students saidthey have a hard time believing the accused areguilty.

Barnes said Lee was genuinely devoted toEvening With Champions.

"I would never believe that Chaz took thismoney, just because he was so dedicated to EveningWith Champions," Barnes said yesterday. "This isnot the Chaz that I know."

Charlie Davidson, who owns the Andover Shopwhere Lee worked, said he thought of his formeremployee "as my son."

"I've owned it for 40 years, and I've neverbeen fonder of anybody in all those years than Iwas of him," Davidson said. "This is such a shock.He was so considerate, such a wonderful worker, soconcerned with doing everything properly."

Dean of the College L. Fred Jewett '57, whoinvestigated when the money was first discoveredmissing last summer, said yesterday that at thetime he "couldn't foresee any easy explanation[other] than that someone had taken the money."

"If the facts alleged in the indictment areaccurate, then I feel personally that it was avery, very serious and very awful violation oftrust," Jewett said. "If this is true as alleged,it certainly was reprehensible."

But Jewett said he wanted to reserve judgmentalcomments until after the case has beenadjudicated

He dedicated much of his time to charity work,participating in Phillips Brooks House in additionto Evening With Champions.

Sword helped found Serve Canada, a privateyouth service in Toronto. He resigned from thegroup last summer when word of a district attorneyinvestigation broke.

Friends of the two former Harvard students saidthey have a hard time believing the accused areguilty.

Barnes said Lee was genuinely devoted toEvening With Champions.

"I would never believe that Chaz took thismoney, just because he was so dedicated to EveningWith Champions," Barnes said yesterday. "This isnot the Chaz that I know."

Charlie Davidson, who owns the Andover Shopwhere Lee worked, said he thought of his formeremployee "as my son."

"I've owned it for 40 years, and I've neverbeen fonder of anybody in all those years than Iwas of him," Davidson said. "This is such a shock.He was so considerate, such a wonderful worker, soconcerned with doing everything properly."

Dean of the College L. Fred Jewett '57, whoinvestigated when the money was first discoveredmissing last summer, said yesterday that at thetime he "couldn't foresee any easy explanation[other] than that someone had taken the money."

"If the facts alleged in the indictment areaccurate, then I feel personally that it was avery, very serious and very awful violation oftrust," Jewett said. "If this is true as alleged,it certainly was reprehensible."

But Jewett said he wanted to reserve judgmentalcomments until after the case has beenadjudicated