Public guardian: CEDA chief defaults on repaying his former secretary

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Public guardian: CEDA chief defaults on repaying his former secretary


Much-lauded CEO is targeted after not repaying disabled former secretary

By Cynthia Dizikes and David Jackson, Chicago Tribune reporters
January 10, 2012

The leader of one of the state's largest nonprofits promised in court last year to repay tens of thousands of dollars to his dementia-afflicted former secretary after the Cook County public guardian alleged he exploited her financially.

But records show that Robert Wharton, chief executive officer of the Community and Economic Development Association of Cook County, subsequently defaulted on that settlement agreement, writing checks that bounced due to insufficient funds.

Cook County Public Guardian Robert Harris has now asked Circuit Judge Ann Collins-Dole to hold Wharton in criminal contempt, incarcerate him for up to six months and force him to reimburse his one-time employee, Dorothy Hork.

"It's wrong for so many reasons," Harris said in a recent interview. "Dorothy is compromised because of dementia, she can't control her basic life functions, and she was pretty much on her own. And the only one she called a friend was Robert Wharton."

Harris alleged in a court filing in June 2010 that Wharton had taken about $63,000 from Hork over several years, coaxing her to write him more than 50 checks, ranging from $200 to $3,500 often in rapid succession. Although the checks had "loan" written on them, Harris alleged Wharton never planned on paying Hork back.

Wharton did not admit to any wrongdoing in the 2011 settlement, but he agreed to repay Hork $78,000 — more than the guardian's initial estimate.

Last month, Collins-Dole ordered Wharton to produce the $71,000 he still owes Hork by Wednesday, when he is expected in court.

Wharton said in an interview Monday that he plans to repay Hork but denied ever exploiting her. Instead, Wharton said he acted as a friend and helper to Hork, who is 91 years old and lives in an Evanston nursing home.

"That is not the case, that I knowingly manipulated Dorothy Hork," Wharton said. "I kind of resent that position, because that questions my whole relationship and integrity during the period. I did quite a bit for Dorothy Hork, OK. I was basically her support system."

Wharton was appointed in 1997 to head CEDA, which is a Chicago-based nonprofit that boasts a variety of assistance programs for Cook County residents, including child and family development, housing and weatherization.

The organization was the subject of a blistering 2010 federal report that pointed to shoddy and sometimes dangerous weatherization work by CEDA contractors and a subsequent Tribune story, examining the agency's lack of transparency despite receiving hundreds of millions of dollars in government funding.

From 2007 through 2009, CEDA took in more than half a billion dollars in grants and contributions, with 99 percent of that money coming out of taxpayers' wallets. During those years, records show Wharton made about $200,000 annually, including a $33,000 bonus.

But during that time frame, the public guardian's office alleges, Wharton was taking money from Hork on a near-weekly basis.

While Wharton has risen to local and national prominence in recent years, receiving awards and accolades for his work in the community, records show he has struggled with financial problems.

Despite making a base salary of $202,525 from CEDA in the 2009-10 budget year, court records show Wharton's south suburban Crete home is in pre-foreclosure. His wages are being garnished after failing to pay back about $35,000 the court found he owed in loan payments and other costs to Beneficial Mortgage Co. of Illinois Inc. Over the last 30 years, Wharton also has filed for bankruptcy and faced multiple tax liens.

Wharton acknowledged he has "not done a good job" with his personal affairs. He said he used Hork's money to help care for her, to pay some of his debts and to deal with family medical problems. Wharton said he cares for an adult son and that his wife was diagnosed around 2008 with breast cancer, which has spread.

Still, Harris said the entire situation raises questions about whether Wharton should be heading an organization that receives about $200 million annually in government grants.

"You would expect someone who is handling such large sums of money to be pretty savvy and responsible about how they manage money," Harris said.



Craig Chico, vice chairman of CEDA's board, said he was shocked to learn of the Hork case when a reporter called to ask him about it Monday. Chico added that Wharton has always come off as "a wonderful guy" and that the board has not had cause to investigate his actions related to CEDA.

"There is a pretty strict financial scrutiny over the things we do with regards to audits, and nothing has ever risen to the level that would cause us to question Bob's integrity at this point," Chico said. "But, I'm sure we'll be having further discussions based on this new information."

Wharton said his personal turmoil has not affected his CEDA responsibilities.

Hork worked at the agency for 28 years. Described as a proud woman who took great satisfaction in her professional role as secretary to the head of CEDA and as a devout volunteer for Democratic political campaigns, she never married or had children, the public guardian said.

After she retired, Hork became highly dependent on Wharton, who began helping her pay bills, get groceries and make doctor's appointments, according to the public guardian.

Wharton took her shopping and signed her up for the Meals on Wheels program, the public guardian said. When an eviction proceeding was filed against her in 2008 because her apartment had become filthy and infested with insects, Wharton moved her into a hotel and then another apartment.

By September 2009, Wharton was calling Hork two or three times a day and visiting on a regular basis, according to the public guardian's office, which said it took over her estate around that time after a neighbor called an elder abuse organization to report that Hork appeared to be declining physically and that her Rogers Park apartment seemed uninhabitable.

In a subsequent medical evaluation, Hork was determined to have a "moderately severe range of impairment" from dementia that would have made her unable to enter into financial transactions or contracts between February 2007 and August 2009. She could not perform basic subtraction, say what month or year it was, or state her own address after being told it several times, the doctor wrote.

When court-appointed guardian ad litem Cynthia Farenga later visited Hork at her apartment, she found the woman had little furniture and sat on the floor during the two-hour interview, only to have trouble standing up. Her clothing was stained and dirty, her bare feet badly needed grooming, and she had a sore on her right leg, Farenga said.

Notebooks that Hork kept in her apartment, which show increasingly sloppy and confused recordings of her financial transactions, suggest that while she was trying to document her funds, she was unable to keep the details straight, officials with the public guardian's office said.

"I fear for her safety, her ability to spend days and nights alone, to feed her and to groom herself," wrote Farenga. "Though she says she wants to leave her apartment on occasion, she is unable to do so. She relies on her friend, Bob (Wharton), for major assistance in her life, but lacks the insight to realize that her basic needs are not being met."

Wharton contended, however, that he was trying to help Hork and believed she, in turn, was trying to help him. Wharton said if he had known the extent of her mental deterioration, he would not have continued the same kind of relationship. But, he said, he still thinks she meant to forgive the loans and give him her estate.

"She wanted me to have what she had when she passed," Wharton said. "Because Bob Wharton supported her at the time that she needed support and helped make her life much better."

Hork's remaining assets, which total about $200,000, are now going toward her care at a nursing home, which costs about $9,000 a month. The money she stands to receive from Wharton would go to that care, Harris said.

"She needs that money to live," he said.

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http://www.chicagotribune.com/news/local/ct-met-robert-wharton-ceda-20120110,0,1646496.story

Editor's note: What was the involvement with the Probate Court of Cook County?  Who was the Judge during 2007 -2009? Who knew about Wharton's "presumption of heir"? Lucius Verenus, Schoolmaster, ProbateSharks.com