A Hartford nonprofit that abruptly laid off most of its staff was crippled by a 鈥渟ignificant鈥� wire transfer fraud, according to its board of directors.
The Blue Hills Civic Association, which provides housing assistance, violence prevention programs and other services, sparked outcry last week after implementing sudden layoffs across the organization. Residents and former employees demanded answers at a meeting of the Hartford City Council, saying they had no forewarning.
The organization told 海角换妻 last week that it faced "unforeseen financial circumstances" that triggered the layoffs, but declined to answer questions.
In a statement provided to members of the City Council Monday, the nonprofit's board of directors provided more detail, saying: 鈥淩ecently, the BHCA was the victim of fraud when a wire transfer was intercepted by a presumed cyber thief. The funds, which were significant, were being transferred to one of the subgrantees of the organization.鈥�
The unexpected loss of funds crippled the organization鈥檚 ability to continue its work, according to the board. It has since terminated the organization鈥檚 executive director, Vicki Gallon-Clark, and its chief financial officer after an internal investigation uncovered "failures that led to BHCA being in this unfortunate position," according to the statement.
State and federal law enforcement are investigating.
The board said it's working with state officials to determine a pathway forward to rebuild the organization.
鈥淭he gravity of this situation and its implications for our partnership, employees, and community are not lost on the Board, and we are doing everything we can to promptly resolve this issue,鈥� it said in the statement.
The Blue Hills Civic Association has been a cornerstone in the Hartford community. Just last month, the organization opened applications for its summer youth employment program.
Hartford Councilwoman Marilyn E. Rossetti said she was concerned for the former employees and all the services the nonprofit offers.
鈥淚t鈥檚 surprising and it鈥檚 tragic for the employees,鈥� she said.
Phone messages left Tuesday for the Blue Hills Civic Association were not returned.
