Christopher DeChant—who was behind the once-nationally syndicated HIV Talk Radio Project—and Kim Leffert, a member of the group's board of directors, have reached a settlement in a case in which the office of Illinois Attorney Lisa Madigan claimed that the two misappropriated more than $1.4 million of the organization's funding.
DeChant and Leffert have agreed to repay the amount of the misappropriated funds to the donors and pharmaceutical companies that originally sponsored and donated to AWARE: HIV Talk Radio and HIV Talk Radio Project, as well as to a collection agency to ensure the "charitable funds" are directed to the people originally meant to benefit in the first place.
Also, within the terms of the decree, DeChant and Leffert have agreed to abstain from performing and or participating in any philanthropy in the state of Illinois ever again.
AWARE: HIV Talk Radio debuted August 1992, and is credited as being one of the nation's first syndicated radio shows of its kind: It educated listeners on the many misrepresentations of HIV and AIDS, as well as various other sexual-health issues.
The weekly broadcast originally aired on Chicago's WNUA 95.5 and eventually branched out to over 400 radio stations nationwide, reaching an estimated 6 million people per program.
DeChant was the founder, host and executive producer of AWARE: HIV Talk Radio, as well as the non-profit health communications agency, HIV Talk Radio Project. The programming was supported by educational grants from foundations such as The U.S. Center for Disease Control and Prevention, and companies like Walgreens Pharmacy.
For 14 years, HIV Talk Radio Project was hailed for its dedication to delivering awareness on the subject of sexual health and disease. But the broadcast ended abruptly in March 2006, when DeChant circulated a letter to affiliates that all the project's operation would end immediately.
An anonymous tip spurred an investigation soon after, into the misappropriation of the organization's funds, totaling over $1.4 million.
On June 30, 2006, the office of Illinois Attorney Lisa Madigan filed a lawsuit against DeChant and Kim A. Leffert, a member of the board of directors of HIV Talk Radio Project. The complaint alleged that from February 1999 through April 2005, 21 of the project's checks, totaling $1,450,186.40, were drawn and made payable to DeChant under a fictitious company name, "New World Media," and that Leffert signed each check.
According to the case reports, neither DeChant nor Leffert ever received permission from the board of directors to draw any of the 21 checks and that DeChant intentionally fabricated documents in order to conceal the fact that he had intended to distribute the charitable funds to himself.
DeChant provided a record, which he alleged to be minutes of a board of directors meeting that would in fact prove the working relationship between HIV Talk Radio Project and "New World Media." But Madigan obtained the actual record, which, unlike the falsified document provided by DeChant, did not refer to "New World Media" whatsoever.
The claim also stated that DeChant served as the project's compensated executive producer, whose salary totaled up to more than $450,000; that he controlled day-to-day operations, which included authority and control over all the staff, employees and personnel; had control over the accounting systems and records; and that HIV Talk Radio Project did not employ any independent contractors, namely, "New World Media," to participate in any aspect of producing, editing, syndicating, distributing, and broadcasting the AWARE: HIV Talk Radio program.
Had DeChant and Leffert been found guilty of the allegations presented against them, they would have been in direct breach of fiduciary duties under Section 15 of the Illinois Trust Act. Section 15 ( a ) states that charitable trustees are subject to certain duties otherwise defined in Illinois statutes and case law, which include but are not limited to the following:
—To avoid in "self-dealing" and conflict of interest;
—To avoid wasting charitable assets;
—To avoid incurring penalties, fines, and unnecessary taxes;
—To adhere and conform the charitable organization to its charitable purpose;
—To not make no-program loans, gifts, or advances to any person, except as allowed by the General Not For Profit Corporation Act of 1986;
—To utilize the trust in conformity with its purpose for the best interest of its beneficiaries;
—To timely file registration and financial reports required by this Act; and
—To comply and to cause the charitable organization to comply with this Act and, if incorporated, the General Not For Profit Corporation Act of 1986.
But before the courts had a chance to convict DeChant and Leffert on any of the charges filed, the plaintiff, or, the people of Illinois, and the defendants came to an agreement on the terms of a consent decree.
