The Meltdown Continues At The Cincinnati Empowerment Corporation

Critic says nonprofit in disarray
Second trustee to quit Empowerment Corp.
Cincinnati Business Courier - June 23, 2006
by Dan Monk, Senior Staff Reporter

Click the link above to find Dan Monk's latest article in the Courier.

A second member of the board has left the Empowerment Corporation.

"Stephanie Smith, a program officer for the Fifth Third Foundation, tendered her resignation June 20 in response to a real estate transaction involving Empowerment Corp. board member George Beatty and the agency's CEO, Harold Cleveland. Word of Smith's resignation came from Lamont Taylor, a executive who resigned June 13 in response to another Empowerment Corp. situation involving Dale Mallory, the brother of Cincinnati Mayor Mark Mallory."

On the 18th of June, this blog broke a story about a real estate transaction between Empowerment Corp CEO Harold Cleveland and Empowerment Corp board member George "Junebug" Beatty.

The shady transaction was the last straw for Stephanie Smith, who promptly resigned after finding out about it. "Smith declined comment, saying the agency's board will meet soon to address Cleveland's recent purchase of a building where Beatty is now a tenant."

"Taylor said these deals are symptomatic of an agency in disarray. "It's to the point where the board has to do the work of the CEO," said Taylor. "There's no direction. There's a pot full of money sitting over there. But the administration has let the West End control that organization for all these
years."

A pot of money indeed. And I would like to find out everyone who has been dipping their hands into it.

One disappointment I had was that the reporter never mentioned Genesis Redevelopment. Several key players have ties to Genesis, and it appears that history is repeating itself.

The article also talks about Empowerment Zone loans that are in arrears. One such loan from the E-fund program went to Theo Holmes. George "Junebug" Beatty was in charge of the E-Fund program. He approved a loan to someone that purchased his building where Junebugs Barbeque is located. This is the same property that Harold Cleveland closed on this month. Much like Mallory's contract, the details of these inside deals are withheld from other board members.

"It's a very uncomfortable situation," said Taylor. "The entire board does not know about these transactions that happen in the administration on a day-to-day basis."

Taylor said that was the case with Dale Mallory's consulting contract, in which the former West End Community Council president was paid $770 a week to forge ties between the Empowerment Corp. and communitycouncils in other neighborhoods.

"Dale never reported to me. He reported to Len Garrett," said Taylor, who pushed for an inquiry into the Mallory contract and in early June called for chairman Garrett's resignation. When Garrett refused to step down at an emergency board meeting June 13, Taylor resigned in protest.

The article doesn't stop there. The Empowerment Corporation also paid a campaign consultant for both Dale and Mark Mallory, Dan Phenicie. The Mallory Center for Community Development is also a recipient of EZ funds. You have to wonder just how many hands can fit in the cookie jar.