Howard Solomon, also known as Solomon Howard, embezzled more than $549,000 from the East Oakland Boxing Association, a nonprofit that provides after-school and summer programs, tutoring, literacy support, boxing training, and internships for low-income youth in East Oakland.
He served as the organization's executive director between 2017 and 2021 and had access to its bank accounts during that period. Prosecutors stated that instead of safeguarding the nonprofit's funds, he transferred money from East Oakland Boxing Association accounts into his own accounts. He also deposited charitable donations made to the nonprofit into his personal accounts.
One misappropriated donation was a $50,000 check associated with a December 2019 appearance by basketball player Stephen Curry and his wife Ayesha on the Ellen DeGeneres Show, which had been intended for the organization.
Authorities reported that Solomon used the embezzled money for personal expenses, including a vacation rental and a Ford Explorer.
He pled guilty in April to one count of mail fraud and one count of tax evasion in connection with the scheme to siphon at least $549,000 from the nonprofit.
A federal judge sentenced him to 27 months in prison and ordered restitution of $549,132 to the East Oakland Boxing Association and $287,185 to the Internal Revenue Service. His prison term is scheduled to begin on October 30.
Source: https://www.justice.gov/usao-ndca/pr/former-executive-director-who-embezzled-over-500000-non-profit-serving-oakland-youth
Commentary
In the above matter, the perpetrator often failed to deposit revenue/donations meant for the nonprofit into the nonprofit's accounts. Without a record of deposit, it is very difficult to determine that monies are misappropriated. Effective loss prevention begins the moment money is offered to an organization, not when it appears on a bank statement.
Without clear governance over how cash, checks, electronic transfers, and donations are received, recorded, and deposited, organizations create opportunities for delay, diversion, and fraud.
Strong intake controls require defined roles, segregation of duties, written procedures, and documentation at each step, from receipting to deposit confirmation. Staff and volunteers should never decide on their own where funds are held. Every dollar must flow promptly into verified organization accounts with no exceptions for "temporary" holding or personal reimbursements.
Regular reconciliations between intake logs, bank deposits, and accounting records help detect missing funds early and discourage misconduct.
Training is essential so that everyone who touches incoming money understands both the process and the consequences of bypassing it.
Leadership must reinforce a culture where transparency in handling funds is viewed as a basic duty to stakeholders, not an optional administrative task. By formalizing how money comes into the organization and eliminating informal workarounds, organizations protect their resources and demonstrate fiduciary responsibility. This can reduce the risk that a single weak link in the intake chain will undermine their mission.
