CHELMSFORD, Mass. — An IRS investigation into a nonprofit human services agency in Massachusetts has uncovered nearly $300,000 in expenses linked to an embezzlement case.
The Lowell Sun reports the IRS filing found LifeLinks Inc. charged about $286,000 in illegitimate expenses to the state over eight fiscal years. The Chelmsford agency supports adults and children with developmental disabilities.
LifeLinks CEO Jean Phelps says an employee was fired after other staff members found accounting irregularities in 2016. The former employee is accused of misusing state funds and LifeLinks’ money for personal and family matters.
Phelps says LifeLinks repaid the state and is negotiating with its insurer to possibly be reimbursed pending the former employee’s prosecution.
The state Attorney General’s Office declined to comment on the investigation on Monday.
Information from: The (Lowell, Mass.) Sun, http://www.lowellsun.com