UPDATE: A former nonprofit executive director has reached a plea deal in a high-profile embezzlement case involving over $136,000. Cheri Gerken, aged 53 from Moorhead, agreed to plead guilty to a reduced charge of Class C felony theft, just announced by Cass County prosecutors on November 5, 2024.
Under the terms of the plea agreement, Gerken will face 60 days of electronic home monitoring, two years of supervised probation, and 80 hours of community service. Additionally, she must repay $3,179.22 to Presentation Partners in Housing, the nonprofit she is accused of defrauding, which provides assistance to homeless individuals.
Originally charged with Class A felony theft, which could have resulted in a 20-year prison sentence, Gerken will now admit to a lesser charge that carries a maximum penalty of five years. The investigation commenced in November 2024 when the president of Presentation Partners reported unauthorized use of company funds by Gerken, leading to alarming findings.
An accounting review revealed that from January 2019 to November 2023, Gerken charged a staggering $267,280 to her company credit card. Of that, only $42,000 was legitimate business expenses, leaving over $136,554 clearly misused. Following these revelations, Gerken was terminated from her position.
In a handwritten letter to the board, Gerken expressed remorse, admitting to the misuse of funds. She revealed her personal struggles post-divorce, stating she had difficulty managing her bills and supporting her children without a second income. She claimed her intent was always to repay the nonprofit but was ultimately unable to do so, leading her to file for Chapter 7 bankruptcy in May 2024.
As part of the plea agreement, Gerken has waived her right to appear in court at her next hearing, set for November 20. This case highlights the pressing issue of financial integrity within nonprofit organizations, emphasizing the critical need for oversight to protect vulnerable populations.
Stay tuned as we monitor further developments in this case, which raises significant questions about accountability and fiscal responsibility in the nonprofit sector.
