Saturday, September 25, 2004
Foundation president testifies against Burrow
William McIntosh said Richard Burrow didn't give board members a complete picture of the D-Day foundation's debt.
On his second day of testimony at the federal fraud trial of his former boss and former foundation president, Richard Burrow, McIntosh recalled that Burrow informed people at an executive committee meeting on April 30, 2001, that the foundation had outstanding bills to contractor Coleman Adams for about $1 million and a commitment to architect Byron Dickson for $300,000. Burrow did not mention any other outstanding debt, said McIntosh, who was not called as a witness in Burrow's first federal fraud trial in 2002. (Burrow's first trial resulted in a hung jury).
On cross-examination by Burrow's attorney John Lichtenstein, McIntosh admitted that the minutes of the April 30 meeting included a longer list of people whom the foundation owed money to. But McIntosh said he didn't recall hearing Burrow talk about the other companies at the meeting.
McIntosh also testified that Burrow asked him in the months leading up to the dedication when there was a cash flow problem to get a pledge from Richmond philanthropist E.C. Robins in writing. McIntosh said he pointed out that Robins had not made a pledge but had only agreed to match funds raised by invitees to a fund-raising dinner in Richmond. Robins also said he would match up to $2 million up until June 1. That date was later moved back to the dedication date, June 6, 2001.
McIntosh said he was embarrassed to go to Robins about it but did anyway. Robins did not sign any documentation. This upset Burrow, who worried that he could lose his job as a result, McIntosh testified.
After Burrow's resignation within a month of the dedication of the memorial, McIntosh said the financial situation became apparent.
For example, he said he learned for the first time that the foundation owed more than $300,000 to a granite company in Minnesota.
A company representative from Cold Springs Granite testified Friday afternoon after McIntosh finished testifying that Burrow told her he was getting a loan to pay outstanding debt. Then he did not return several calls as the dedication date approached, she said. Burrow did leave her a message that he was still trying to get payment but did not let the woman know when he resigned. After McIntosh took over, the debt was paid, she testified.
McIntosh also testified that he was concerned when he took over after Burrow and learned that no annuity had been set up for donor Melvin Profitt. Profitt had donated more than $1.3 million to the foundation in stock and had asked for quarterly payments from it to live on. But McIntosh said he found that no annuity was set up, and Profitt hadn't been paid.
McIntosh also testified that the Richard S. Reynolds Foundation of Richmond did not make good on the second half of a $50,000 pledge when representatives learned that the first $50,000 had not gone toward an education center but toward construction costs. Lichtenstein suggested that the foundation may have used funds earlier for the construction of the infrastructure of the education center, then used the Reynolds money to pay back the account for memorial construction. The education center has not yet been built.
McIntosh did agree that Burrow was under a lot of pressure, that the foundation raised more money than it expected under his stewardship, and that cash flow can be an issue for nonprofit organizations.
The trial is scheduled to continue Monday.




