Embezzlement at the Country Club: A Breach of Trust

This critical incident describes the events and resulting consequences of fraud and embezzlement committed by Dale Endries, controller for the Oneida Golf and Country Club (OGCC). This activity extended over a 6-year period and amounted to over $2.6 million. How could this have happened? The OGCC is a private golf club with a history dating back to 1929 and with a membership that includes the “who’s who” of northeast Wisconsin. Private, non-profit clubs and organizations have boards of directors who have a fiduciary duty to shareholder members, and boards hire and oversee managers who guide day-to-day operations. Clearly there was a breach of trust between Endries and the board, but does the board bear any responsibility for what happened? In what ways did the board fail in its fiduciary duties? Why did they fail? What changes are needed to prevent future breaches of trust and fraud?