The fired president of Feed The Children is alleging the charity lost $13 million to $15 million on its investments during the recession because of an inept board of directors.
Larry Jones made the accusation this week in the latest legal filing in his wrongful-termination lawsuit against the charity and five directors.
He alleges directors neglected to oversee mutual funds, corporate bonds, government securities and other investments.
"You can’t stand idly by,” attorney Mark Hammons said. "The contention is that the board members — despite the pretty dramatic problems with the stock market — simply did not do anything to address those financial problems.”
The charity lost about $9.6 million between June 30 and Oct. 31, 2008, according to a draft accountants’ report.
A charity spokesman said, "Feed The Children remains financially strong and viable. Mr. Jones’ claims are unfounded.”
Long-term turmoil
Jones sued after the board fired him Nov. 6 for having hidden microphones installed in three executives’ offices.
The charity in December filed a countersuit, accusing Jones of taking bribes, hiding hard-core porn magazines at the charity and other misdeeds.
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