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June 28, 2000
law

San Francisco's Catholic Charities group being investigated

CCASF The church and state are coming together in the Bay Area to investigate the spending habits of the chief executive of the Catholic Charities of the Archdiocese of San Francisco, after reports by the San Francisco Chronicle indicated the man, Frank Hudson, spent agency funds on cosmetic procedures for himself and meals in the city's best restaurants.

Since 1998, Hudson has charged more than $51,000 to Catholic Charities for meals at some of the city's most expensive restaurants. The charges average about $500 a week and Hudson often dined alone, the Chronicle reports.

The CEO also had the agency pay for "Botox" injections, which temporarily remove wrinkles around the eyes, and for laser hair removal, the newspaper reports.

The city provides half of the local Catholic Charity's annual funding -- or $12 million of the group's $23.5 million budget -- to run a number of programs, including the Guerrero House for homeless young people, which may be closed because of funding problems.

However, cutbacks to the agency-sponsored Peninsula Family Resource Center and Behavioral Healthcare Services have been tabled as the investigation gets under way, the newspaper reports.

A special committee made up of the Archdiocese's board of directors will launch an internal investigation of Hudson's spending habits.

The San Francisco City Attorney's office will launch its own investigation into whether Hudson broke any laws.

City leaders say the Catholic Charities controversy likely will lead to new rules spelling out exactly how nonprofits that receive public funding can use those funds.

Church leaders say any improper expense account items will be repaid.

Full text of the article is currently found at:
http://www.sfgate.com/cgi-bin/article.cgi?file=
/chronicle/archive/2000/06/27/MN94643.DTL



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