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Headwaters is �not going away� That�s despite environmental group�s money woes, and leader suspected of theft By Paul Fattig ASHLAND � Rocked by embezzlement charges against its executive director, the Headwaters environmental group has had better days, admits Chris Bratt. Its four-person staff has been temporarily laid off, its bank account has dwindled from nearly $300,000 to under $10,000, and its reputation has been badly tarnished. Still, the president of the group�s 13-member board is quick to insist the 25-year-old environmental group isn�t about to close shop. "But the board and members have picked up a lot of the slack, both monetarily and workwise," Bratt said. "The staff has had to be laid off, but they are waiting in the wings to go back to work. We�re not going away." The office at 84 Fourth St. will be open part-time beginning Monday, thanks to a half-time staff member who will be on board, he said. It was closed late last week after the news hit that executive director Richard "Rick" Lee Gwynallen, 43, of Medford, had been arrested on embezzlement-related charges by Ashland police. Cautioning that their investigation into the complex case is not complete, police said Gwynallen is suspected of embezzling more than $170,000 in grant money from December 1998 until this past June. He faces charges of first-degree aggravated theft and laundering of a monetary instrument (diverting funds), police said. Gwynallen told the Mail Tribune that he was innocent of any criminal intent. He began working as an administrator for Headwaters in January 1990 and was named executive director about two years ago. While the revelation was a bitter blow to Headwaters, it wasn�t a death blow, Bratt stressed. The staff is ready to go back to work as soon as the organization has regrouped, Bratt said. Headwaters has never had more than seven full-time staffers, he said, noting that the group traditionally has depended heavily on volunteer help. "But our staff is very dedicated," he said. "They are hanging in there. " Staff member Robert Lonsdorf, conservation director for Headwaters, agreed. "All of the staff believes very strongly in the Headwaters mission and its reason for being," Lonsdorf said. "It has played a critical role in the environmental movement." However, to survive, Headwaters must demonstrate to grant-awarding foundations that the organization has taken steps to avoid a repeat of what is alleged to have happened, Lonsdorf said. "Headwaters needs to make its case to the foundation world," he said. Reorganization is already under way, Bratt said, adding that an in-depth audit is planned. Although the group has had financial difficulties in recent years, Bratt said it was unknown whether those difficulties were directly related to the embezzlement charges. "Headwaters will continue," Bratt said. "We�ve informed some of the grantors about our problems. Their reactions have been that they want us to be around. We definitely want to be around." The organization�s average annual budget in recent years has been about $285,000, he said. "Right now, we have about $7,000 in the bank," Bratt said. "We have some prospective grants. And we are going to start a major donor campaign." As evidence of support, Bratt noted that Applegate Valley resident Maggie Purves, a former board member, sent in a $2,000 contribution earlier this month upon hearing of the crisis. "I�m confident you all will succeed (in keeping the office open) � couldn�t imagine our area without Headwaters," she wrote in a note. In addition, the consortium that owns the building rented by Headwaters has deferred rent until Jan. 1, Bratt said. "Grantors are helping with legal and accounting issues," he said. "Our members are showing their support." Originally started as a coalition of groups, Headwaters is now largely a membership organization with some 750 members. The environmental watchdog group built a reputation of launching administrative appeals or lawsuits when it felt decisions by the Forest Service or Bureau of Land Management threatened the environment. "We�ve had a very dynamic history," Bratt said. "It hasn�t slowed down. We�ve still got issues to work on. "The board is determined to get through these financial difficulties," he reiterated. "With the help of members and the grantors, we�ll come out of this stronger than we were before." Obituaries | Sports | Business | Classifieds | Tempo | Prime Times | So Oregon Sites | Outdoor Journal | Subscribe | Contact | Movies | Advertise | Real Estate Showcase | Archive | Editorials | Letters to the editor | Religion | Wake-up Call | NIE | Cyber Chef | Job Network | So Oregon Weather | WSJ Northwest | Forums | AP Wire | AP Money | F.A.Q. | Awards Ottaway Newspapers, Inc. The Community Newspaper Subsidiary of Dow Jones & Co, Inc Copyright �The Mail Tribune 2000, Medford, Oregon USA