In a recent legal development, Catholic Charities of the Archdiocese of Milwaukee has accused its former finance director, Brandi Ellis, of orchestrating an extensive financial fraud. The allegations emerged in a lawsuit filed on May 9 against Ellis, who served in various financial roles within the organization for a decade. According to the lawsuit, Ellis allegedly siphoned off millions of dollars through deceptive accounting practices and unauthorized use of corporate credit cards. This misappropriation included personal expenditures such as online video rentals, rideshare services, entertainment tickets, and casino visits. While the exact amount stolen remains uncertain, the charity is seeking significant compensatory damages from both Ellis and their auditing firm, Baker Tilley, for failing to uncover the alleged embezzlement.
The lawsuit paints a detailed picture of how Ellis allegedly exploited her position over several years. From 2014 to 2024, she held critical roles within the financial department, eventually becoming the de facto finance director in 2019. During this period, she reportedly used her authority to fabricate invoices from vendors with whom she had personal ties, claiming payments for goods and services that were never delivered. These fictitious transactions funneled hundreds of thousands of dollars directly into her hands. Additionally, Ellis is accused of using multiple corporate credit cards, some issued under other individuals' names, including a former employee terminated in 2019, to make substantial personal purchases. Her fraudulent activities remained undetected due to her ability to manipulate internal documentation, masking the illicit expenditures as legitimate organizational costs.
Beyond Ellis's actions, Catholic Charities has also taken legal action against its auditing firm, Baker Tilley. The organization claims that the auditors failed to exercise proper professional skepticism during routine audits, relying solely on internal documents provided by Ellis without verifying them against third-party evidence. This oversight allowed suspicious patterns, such as unusual spikes in credit card usage and frequent payments unrelated to the charity's mission, to go unnoticed. Had the auditors scrutinized these anomalies, they might have uncovered the alleged fraudulent activity earlier. Furthermore, the lawsuit highlights specific questionable expenses, like large casino bills and Amazon purchases, which should have raised red flags but were overlooked.
Catholic Charities is now pursuing legal remedies to address the financial harm caused by these alleged actions. They are demanding compensation not only for the stolen funds but also for the investigative and legal costs incurred in addressing the matter. In addition to monetary restitution, the organization seeks exemplary damages from Ellis to deter future misconduct. This case underscores the importance of robust financial oversight and the potential consequences when such systems fail, emphasizing the need for vigilance in safeguarding charitable resources intended to support vulnerable communities.