Statement By Attorney General Eliot Spitzer
Today, I am releasing the findings of my office's investigation into the activities of the Urban League of Northeastern New York (the "Urban League"), and I am announcing the actions taken by the State against its former Chief Executive Officer and President, Aaron Dare.
My office has determined that some remedy to address the clearest breach of duty the mismanagement and misconduct by Mr.Dare is necessary. Mr. Dare will be prohibited from any involvement in a policy-making or fiscal role with any charity conducting activities in New York for a period of ten years. This action is appropriate in light of Mr. Dare's breach of fiduciary duty.
My office has also determined that litigation would not likely recover funds needed to remedy the losses caused by Mr. Dare's mismanagement. The League's current financial difficulties resulted, in part, from conditions beyond the control of the League's officers and directors, such as the loss of a critical anchor tenant on its Millennium Building project. In addition, recovery of all the damages arguably caused by the breach of duty of the Urban League's officers and directors would be insufficient to satisfy the League's liabilities. Finally, the likelihood of realizing the financial benefits of a lawsuit against some or all of the League's officers and directors and most particularly against Mr. Dare, against whom the clearest case of breach of duty can be made is low.
The League's Board of Directors and Mr. Dare cooperated fully with the investigation.
NOTE: Attached is a summary of Attorney General's Charities Bureau Investigation of the Urban League of Northeastern New York.
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