William Aramony
Encyclopedia
William Aramony was CEO of United Way of America for more than twenty years and helped build the organization into the largest charity in the United States. He retired in 1992 amid allegations of fraud and financial mismanagement, for which he was subsequently convicted and sentenced to prison.
. His parents, Russell & Nazley Farrah Aramony, immigrated to the United States from Lebanon
, and he was the youngest of their five children. He grew up in Worcester, Massachusetts
, graduated from Clark University
in 1949 and matriculated at the Boston College Graduate School of Social Work
, where in 1951 he earned a master's degree. Aramony married the former Bebe Ann Nojeim, and the union produced three children, William, Susan and Robert.
Son Robert was at one time president of Sales Service/America Inc., a for-profit subsidiary of UWA.
Aramony served in the Medical Service Corps of the United States Army
, treating soldiers returning from the Korean War
with posttraumatic stress disorder. He was assigned to a Texas military hospital from 1951 to 1953 as a lieutenant.
Community Chest. Four years later, he was hired as a local executive in Columbia, South Carolina
, then Miami, Florida
. He was hired as CEO of the national governing body, the United Community Funds and Council of America (UCFCA) in 1970. He began an organizational makeover and the group was renamed, United Way of America (UWA), and moved from New York City
to Alexandria, Virginia
in 1971. A common stated purpose and standard name (United Way of ...) was established for local affiliates.
Next, he formed a partnership with the National Football League
in 1973, whereby "players and coaches made public service announcements about their involvement with United Way chapters" which were broadcast during NFL games at no charge. "[T]hese associations brought widespread attention" to the United Way and in 1975, helped push donations above $1 billion for the first time.
Aramony helped develop a core strategy, which emphasizes an annual community-wide campaign in the Fall. United Way provides assistance to employers, who provide a payroll deduction option to encourage workers to contribute to United Way. Agencies that receive United Way funding agree not to solicit donations during the UW campaign.
He authored the book, "United Way: The Next Hundred Years" in 1987 and created the minority roundtable which increased minority involvement in the organization. Over his career, he helped develop numerous United Way leaders.
Aramony was awarded the Silver Buffalo Award
in 1988 by the National council of the Boy Scouts of America
. It is presented for noteworthy and extraordinary service to youth on a national basis.
During his tenure, United Way receipts rose from $787 million in 1970 to more than $3.1 billion in 1990.
, who is the chairman of Sears, Roebuck & Company. The letter alleged that the charity was being looted by its president, who was romancing a young woman.
When Aramony was questioned about the allegations, he denied any wrongdoing. His divorce became final in 1991. Late that year, a source at the national office revealed that Aramony flew first class, sometimes on the Concorde
, used chauffeur
-driven town car
s and alleged that he had lavished expensive gifts on friends. After receiving multiple requests for information from the media, the United Way of America's board of governors hired outside investigators in December, 1991. The auditors were instructed to review the books and examine accounting procedures within the agency. According to The Washington Post, their investigation "found sloppy record-keeping, inattention to detail, and accounting problems," but no direct "evidence that Aramony had enriched himself". In fact, all of Aramony's travel expenses were supposed to be reviewed before approval by the United Way's board of directors, whose chairman was Robert E. Allen, then the CEO of AT&T. The auditor's biggest criticism was that documentation was lacking to distinguish business expenditures from personal charges. The outrage from local United Way organizations across the country was overwhelming. Scores of offices disaffiliated themselves and/or discontinued their 1% "contribution" of dues to the national office.
During a teleconference on February 27, 1992, Aramony announced his retirement with full pension benefits as soon as a successor was chosen. Until then, he would continue to receive his $390,000 salary and $73,000 in other compensation. When Jay R. Smith, publisher of The Atlanta Journal-Constitution
and an active volunteer at United Way of Atlanta asked Aramony if he felt that they were not owed an apology, Aramony said:
The following day, after an avalanche of calls from local chapters demanding his ouster, Senior vice president Alan S. Cooper was named acting president.
committed by William Aramony. He was accused of pressuring numerous office workers to have sex with him, though no such accusations were ever formally filed. According to the indictment, he propositioned female employees and offered the women "financial benefits if they had sex with him and transferred" or suppressed the careers of "those who rebuffed him."
Aramony was never charged with, or convicted of, sexual harassment or misconduct.
Rina Duncan, Aramony's former secretary, testified that she had had an affair with Mr. Aramony beginning shortly after she was hired in 1982 and lasting until 1985.
During trial, the court admitted testimony from several UWA female employees who testified that they had sexual relationships with Aramony and two UWA employees who rejected Aramony’s sexual advances in 1985.
and other locations for business. Everything was fine until he "met someone he liked even more: her kid sister."
Lori Villasor graduated from high school in Macclenny, Florida
in 1986. She was unsure what to do with her life, so she accepted her older sister’s invitation to move to Alexandria, Virginia and share an apartment. Soon after meeting the 17-year old Lori, the 59-year old Aramony began pursuing her. Lisa Thomas, outraged, told Aramony that she "didn't want him contacting me or Lori at all".
Aramony arranged for a UWA subsidiary to purchase an expensive New York City condominium and furnished it lavishly with $459,000 Partnership Umbrella dollars. Aramony claimed that it was a better deal for UWA than the apartment that had been rented for almost 20 years. However, he also used it for his romantic trysts. Aramony was alleged to have siphoned thousands of charity dollars through Partnership Umbrella to spend on fancy meals, trips and gifts, to keep Villasor as his mistress.
Lori Villasor testified that she had received compensation of $27,500 for two consecutive years as a UWA employee for working on a real estate deal which actually required only "an hour or so" of her time. Aramony also flew Villasor and her younger sister LuAnn to Las Vegas
as a graduation gift for LuAnn.
Rina Duncan, Aramony's assistant, stated that after Aramony began dating Villasor, "he would run up big bills for airplane flights and entertainment." Ms. Duncan admitted that she had altered Aramony's expense accounts for seven years by substituting the names of clients for Ms. Villasor's name and charging UWA for personal luxury items given to Ms. Villasor.
At one point, Villasor threatened to leave Aramony if Duncan continued to work for him. Time magazine notes that Aramony found a position "for Duncan at Partnership Umbrella, the U.W.A. spin-off company that he would use to fund his affair with Villasor."
According to court documents, Aramony was also seeing another UWA employee, Anita Terranova, between 1987 and 1991. Aramony purchased half ownership of a race horse, Stylish Affair, in Terranova’s name and was alleged to have spent $125,576.92 to purchase a Florida condominium for Terranova's use until her retirement in May 1991. He also allegedly gave $10,000 to Terranova to furnish the condominium.
, near Goldsboro, North Carolina
.
Upon appeal, the $300,000 fine was vacated by the United States Court of Appeals, Fourth Circuit based on Aramony's inability to pay. He was released from prison on September 28, 2001 after six years of incarceration and was on probation for three additional years.
Aramony consistently denied any wrongdoing. He appealed his convictions and sentences; nearly all of his appeals were denied. "Aramony's lawyer says his client's judgment was impaired because of brain atrophy" and noted "that Aramony had a cancer that led to surgical castration" while he was seeing Lori Villasor. Lori Villasor ended her affair with Aramony in 1992.
While still incarcerated in 1996, Aramony filed a $5 million lawsuit against UWA, claiming he was denied earnings and retirement benefits that were due him. UWA counter-sued and a United States district court issued a split decision which both parties appealed. The Second Circuit Court of Appeals reversed a portion of the lower court's decision: United Way of America owed Aramony $2.4 million in pension benefits, less UWF's $2.02 million award against Aramony. After subtracting the amount Aramony owed UWA from the New York state attorney general's judgement against him, applicable income tax withholdings and attorney's fees, Aramony received $7,871.
, Aramony devoted a great deal of his time during the 2000s to an initiative for Middle East Jewish, Muslim and Christian communities to encourage fellowship, mediation services and visitor exchange.
He died in late 2011 at his son's Arlington, Virginia home. The cause of Aramony's death was bone cancer, which developed following prostate cancer in the early 1990s.
Early years
William J. Aramony was born in Jewett City, ConnecticutJewett City, Connecticut
Jewett City is a borough in New London County, Connecticut, in the town of Griswold. The population was 3,053 people at the 2000 census.-Geography:...
. His parents, Russell & Nazley Farrah Aramony, immigrated to the United States from Lebanon
Lebanon
Lebanon , officially the Republic of LebanonRepublic of Lebanon is the most common term used by Lebanese government agencies. The term Lebanese Republic, a literal translation of the official Arabic and French names that is not used in today's world. Arabic is the most common language spoken among...
, and he was the youngest of their five children. He grew up in Worcester, Massachusetts
Worcester, Massachusetts
Worcester is a city and the county seat of Worcester County, Massachusetts, United States. Named after Worcester, England, as of the 2010 Census the city's population is 181,045, making it the second largest city in New England after Boston....
, graduated from Clark University
Clark University
Clark University is a private research university and liberal arts college in Worcester, Massachusetts.Founded in 1887, it is the oldest educational institution founded as an all-graduate university. Clark now also educates undergraduates...
in 1949 and matriculated at the Boston College Graduate School of Social Work
Boston College Graduate School of Social Work
The Graduate School of Social Work is one of the professional schools of Boston College, located in Chestnut Hill, Massachusetts. is central to Boston College's mission of social justice. Its major goal is to assist and empower the disadvantaged members of society...
, where in 1951 he earned a master's degree. Aramony married the former Bebe Ann Nojeim, and the union produced three children, William, Susan and Robert.
Son Robert was at one time president of Sales Service/America Inc., a for-profit subsidiary of UWA.
Aramony served in the Medical Service Corps of the United States Army
United States Army
The United States Army is the main branch of the United States Armed Forces responsible for land-based military operations. It is the largest and oldest established branch of the U.S. military, and is one of seven U.S. uniformed services...
, treating soldiers returning from the Korean War
Korean War
The Korean War was a conventional war between South Korea, supported by the United Nations, and North Korea, supported by the People's Republic of China , with military material aid from the Soviet Union...
with posttraumatic stress disorder. He was assigned to a Texas military hospital from 1951 to 1953 as a lieutenant.
United Way career
Aramony began in 1954 as a staff planner for the South Bend, IndianaSouth Bend, Indiana
The city of South Bend is the county seat of St. Joseph County, Indiana, United States, on the St. Joseph River near its southernmost bend, from which it derives its name. As of the 2010 Census, the city had a total of 101,168 residents; its Metropolitan Statistical Area had a population of 316,663...
Community Chest. Four years later, he was hired as a local executive in Columbia, South Carolina
Columbia, South Carolina
Columbia is the state capital and largest city in the U.S. state of South Carolina. The population was 129,272 according to the 2010 census. Columbia is the county seat of Richland County, but a portion of the city extends into neighboring Lexington County. The city is the center of a metropolitan...
, then Miami, Florida
Miami, Florida
Miami is a city located on the Atlantic coast in southeastern Florida and the county seat of Miami-Dade County, the most populous county in Florida and the eighth-most populous county in the United States with a population of 2,500,625...
. He was hired as CEO of the national governing body, the United Community Funds and Council of America (UCFCA) in 1970. He began an organizational makeover and the group was renamed, United Way of America (UWA), and moved from New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
to Alexandria, Virginia
Alexandria, Virginia
Alexandria is an independent city in the Commonwealth of Virginia. As of 2009, the city had a total population of 139,966. Located along the Western bank of the Potomac River, Alexandria is approximately six miles south of downtown Washington, D.C.Like the rest of northern Virginia, as well as...
in 1971. A common stated purpose and standard name (United Way of ...) was established for local affiliates.
Next, he formed a partnership with the National Football League
National Football League
The National Football League is the highest level of professional American football in the United States, and is considered the top professional American football league in the world. It was formed by eleven teams in 1920 as the American Professional Football Association, with the league changing...
in 1973, whereby "players and coaches made public service announcements about their involvement with United Way chapters" which were broadcast during NFL games at no charge. "[T]hese associations brought widespread attention" to the United Way and in 1975, helped push donations above $1 billion for the first time.
Aramony helped develop a core strategy, which emphasizes an annual community-wide campaign in the Fall. United Way provides assistance to employers, who provide a payroll deduction option to encourage workers to contribute to United Way. Agencies that receive United Way funding agree not to solicit donations during the UW campaign.
He authored the book, "United Way: The Next Hundred Years" in 1987 and created the minority roundtable which increased minority involvement in the organization. Over his career, he helped develop numerous United Way leaders.
Aramony was awarded the Silver Buffalo Award
Silver Buffalo Award
The Silver Buffalo Award is the national-level distinguished service award of the Boy Scouts of America. It is presented for noteworthy and extraordinary service to youth on a national basis, either as part of, or independent of the Scouting program...
in 1988 by the National council of the Boy Scouts of America
Boy Scouts of America
The Boy Scouts of America is one of the largest youth organizations in the United States, with over 4.5 million youth members in its age-related divisions...
. It is presented for noteworthy and extraordinary service to youth on a national basis.
During his tenure, United Way receipts rose from $787 million in 1970 to more than $3.1 billion in 1990.
Scandal begins
Aramony and his wife, Bebe were separated in 1988. In 1990, there were UWA office rumors about Aramony's liaisons with a teenage girlfriend on vacations in Paris, London and Cairo. An anonymous note on UWA letterhead was sent in late 1990 to UWA's chairman, Edward A. BrennanEdward A. Brennan
Edward A. Brennan was a former Chairman of the Board, President and Chief Executive Officer , Sears, Roebuck and Co....
, who is the chairman of Sears, Roebuck & Company. The letter alleged that the charity was being looted by its president, who was romancing a young woman.
When Aramony was questioned about the allegations, he denied any wrongdoing. His divorce became final in 1991. Late that year, a source at the national office revealed that Aramony flew first class, sometimes on the Concorde
Concorde
Aérospatiale-BAC Concorde was a turbojet-powered supersonic passenger airliner, a supersonic transport . It was a product of an Anglo-French government treaty, combining the manufacturing efforts of Aérospatiale and the British Aircraft Corporation...
, used chauffeur
Chauffeur
A chauffeur is a person employed to drive a passenger motor vehicle, especially a luxury vehicle such as a large sedan or limousine.Originally such drivers were always personal servants of the vehicle owner, but now in many cases specialist chauffeur service companies, or individual drivers provide...
-driven town car
Town car
A town car is a historical automobile body style in which the front seats were open and the rear compartment closed, normally with a removable top to cover the front chauffeur's compartment...
s and alleged that he had lavished expensive gifts on friends. After receiving multiple requests for information from the media, the United Way of America's board of governors hired outside investigators in December, 1991. The auditors were instructed to review the books and examine accounting procedures within the agency. According to The Washington Post, their investigation "found sloppy record-keeping, inattention to detail, and accounting problems," but no direct "evidence that Aramony had enriched himself". In fact, all of Aramony's travel expenses were supposed to be reviewed before approval by the United Way's board of directors, whose chairman was Robert E. Allen, then the CEO of AT&T. The auditor's biggest criticism was that documentation was lacking to distinguish business expenditures from personal charges. The outrage from local United Way organizations across the country was overwhelming. Scores of offices disaffiliated themselves and/or discontinued their 1% "contribution" of dues to the national office.
During a teleconference on February 27, 1992, Aramony announced his retirement with full pension benefits as soon as a successor was chosen. Until then, he would continue to receive his $390,000 salary and $73,000 in other compensation. When Jay R. Smith, publisher of The Atlanta Journal-Constitution
The Atlanta Journal-Constitution
The Atlanta Journal-Constitution is the only major daily newspaper in Atlanta, Georgia, United States, and its suburbs. The AJC, as it is called, is the flagship publication of Cox Enterprises. The Atlanta Journal-Constitution is the result of the merger between The Atlanta Journal and The Atlanta...
and an active volunteer at United Way of Atlanta asked Aramony if he felt that they were not owed an apology, Aramony said:
Well, Jay, you absolutely are. I do apologize for any problems that my lack of sensitivity to perceptions has caused this movement. I do it happily and gladly to you and everyone else. I would never do anything at all that hurt local United Ways, the mission or the people we serve.
The following day, after an avalanche of calls from local chapters demanding his ouster, Senior vice president Alan S. Cooper was named acting president.
Indictment
Later that year, Aramony was charged, along with CFO Thomas J. Merlo and Partnership Umbrella President Stephen J. Paulachak, in a 53-count Federal indictment charging that they had defrauded their organization of $1.2 million.Other issues
A secondary issue that was not litigated was the alleged sexual harassmentSexual harassment
Sexual harassment, is intimidation, bullying or coercion of a sexual nature, or the unwelcome or inappropriate promise of rewards in exchange for sexual favors. In some contexts or circumstances, sexual harassment is illegal. It includes a range of behavior from seemingly mild transgressions and...
committed by William Aramony. He was accused of pressuring numerous office workers to have sex with him, though no such accusations were ever formally filed. According to the indictment, he propositioned female employees and offered the women "financial benefits if they had sex with him and transferred" or suppressed the careers of "those who rebuffed him."
Aramony was never charged with, or convicted of, sexual harassment or misconduct.
Rina Duncan, Aramony's former secretary, testified that she had had an affair with Mr. Aramony beginning shortly after she was hired in 1982 and lasting until 1985.
During trial, the court admitted testimony from several UWA female employees who testified that they had sexual relationships with Aramony and two UWA employees who rejected Aramony’s sexual advances in 1985.
Villasor sisters
When Lisa Villasor Thomas was 22, she met William Aramony on an airplane. He got her a job at UWA and their affair began in July, 1986. They traveled together to San Francisco, New York CityNew York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
and other locations for business. Everything was fine until he "met someone he liked even more: her kid sister."
Lori Villasor graduated from high school in Macclenny, Florida
Macclenny, Florida
Macclenny is a city in Baker County, Florida, United States. The population was 4,459 at the 2000 census. It is the county seat of Baker County. As of 2010, the population recorded by the U.S...
in 1986. She was unsure what to do with her life, so she accepted her older sister’s invitation to move to Alexandria, Virginia and share an apartment. Soon after meeting the 17-year old Lori, the 59-year old Aramony began pursuing her. Lisa Thomas, outraged, told Aramony that she "didn't want him contacting me or Lori at all".
Aramony arranged for a UWA subsidiary to purchase an expensive New York City condominium and furnished it lavishly with $459,000 Partnership Umbrella dollars. Aramony claimed that it was a better deal for UWA than the apartment that had been rented for almost 20 years. However, he also used it for his romantic trysts. Aramony was alleged to have siphoned thousands of charity dollars through Partnership Umbrella to spend on fancy meals, trips and gifts, to keep Villasor as his mistress.
Lori Villasor testified that she had received compensation of $27,500 for two consecutive years as a UWA employee for working on a real estate deal which actually required only "an hour or so" of her time. Aramony also flew Villasor and her younger sister LuAnn to Las Vegas
Las Vegas Strip
The Las Vegas Strip is an approximately stretch of Las Vegas Boulevard in Clark County, Nevada; adjacent to, but outside the city limits of Las Vegas proper. The Strip lies within the unincorporated townships of Paradise and Winchester...
as a graduation gift for LuAnn.
Rina Duncan, Aramony's assistant, stated that after Aramony began dating Villasor, "he would run up big bills for airplane flights and entertainment." Ms. Duncan admitted that she had altered Aramony's expense accounts for seven years by substituting the names of clients for Ms. Villasor's name and charging UWA for personal luxury items given to Ms. Villasor.
At one point, Villasor threatened to leave Aramony if Duncan continued to work for him. Time magazine notes that Aramony found a position "for Duncan at Partnership Umbrella, the U.W.A. spin-off company that he would use to fund his affair with Villasor."
According to court documents, Aramony was also seeing another UWA employee, Anita Terranova, between 1987 and 1991. Aramony purchased half ownership of a race horse, Stylish Affair, in Terranova’s name and was alleged to have spent $125,576.92 to purchase a Florida condominium for Terranova's use until her retirement in May 1991. He also allegedly gave $10,000 to Terranova to furnish the condominium.
Prosecution
On April 3, 1995, after a three week trial, Mr. Aramony was convicted in the U.S. District Court for the Eastern District of Virginia on 23 counts including conspiracy to defraud, mail fraud, wire fraud, transportation of fraudulently acquired property, engaging in monetary transactions in unlawful activity, filing false tax returns and aiding in the filing of false tax returns. Money laundering charges were dismissed. He was sentenced to 84 months in prison, fined $300,000, and served the time at the Federal Prison Camp at Seymour Johnson Air Force BaseSeymour Johnson Air Force Base
Seymour Johnson Air Force Base is a United States Air Force base located to the southeast of Goldsboro, North Carolina. The base is named for Navy test pilot Seymour Johnson, a native of Goldsboro...
, near Goldsboro, North Carolina
Goldsboro, North Carolina
Goldsboro is a city in Wayne County, North Carolina, United States. The population was 37,597 at the 2008 census estimate. It is the principal city of and is included in the Goldsboro, North Carolina Metropolitan Statistical Area. The nearby town of Waynesboro was founded in 1787 and Goldsboro was...
.
Upon appeal, the $300,000 fine was vacated by the United States Court of Appeals, Fourth Circuit based on Aramony's inability to pay. He was released from prison on September 28, 2001 after six years of incarceration and was on probation for three additional years.
Aramony consistently denied any wrongdoing. He appealed his convictions and sentences; nearly all of his appeals were denied. "Aramony's lawyer says his client's judgment was impaired because of brain atrophy" and noted "that Aramony had a cancer that led to surgical castration" while he was seeing Lori Villasor. Lori Villasor ended her affair with Aramony in 1992.
While still incarcerated in 1996, Aramony filed a $5 million lawsuit against UWA, claiming he was denied earnings and retirement benefits that were due him. UWA counter-sued and a United States district court issued a split decision which both parties appealed. The Second Circuit Court of Appeals reversed a portion of the lower court's decision: United Way of America owed Aramony $2.4 million in pension benefits, less UWF's $2.02 million award against Aramony. After subtracting the amount Aramony owed UWA from the New York state attorney general's judgement against him, applicable income tax withholdings and attorney's fees, Aramony received $7,871.
Later Life and Death
Aramony married again in 2002 to Gail Manza. According to The New York TimesThe New York Times
The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...
, Aramony devoted a great deal of his time during the 2000s to an initiative for Middle East Jewish, Muslim and Christian communities to encourage fellowship, mediation services and visitor exchange.
He died in late 2011 at his son's Arlington, Virginia home. The cause of Aramony's death was bone cancer, which developed following prostate cancer in the early 1990s.
Publications
- The United Way: The Next Hundred Years, ISBN 1556110391, Dutton Adult, April 1987