Document text
Gwynallen gets probation, fines for Headwaters case By JILL BRISKEY and PAUL FATTIG The former executive director of Headwaters has been sentenced to five years' probation and ordered to pay back the $159,345 he stole from the environmental group. Richard "Rick" Lee Gwynallen, 44, who now lives in Baltimore, was also sentenced Friday in Jackson County Circuit Court in Medford to 30 days' home detention and a court fee of $105. Gwynallen pleaded guilty to a charge of aggravated theft, a Class B felony with a maximum punishment of 10 years in prison and a $200,000 fine. His sentence was the result of a plea bargain agreement. He has been accepted into the Alternative Corrections Concept Program in Maryland, where he will serve his probation and continue with counseling, his attorney, Jeni Feinberg, told the court. Prior to his court appearance, Gwynallen presented a $30,000 check as part of the restitution. Feinberg said the funds had been verified. A Headwaters spokesman said the group was satisfied with the punishment that had been meted out. "Restitution has begun," said board chair Roger Butterfield, of Medford. "Rick now has a felony on his record. We really want to start looking at the future now." Gwynallen, whose duties included grant writing, took the funds during an 18-month period ending in mid-April 2000 by diverting grant checks into a secret bank account he had opened. Canceled Headwaters checks signed by Gwynallen covered an array of items, including merchandise from the Gold & Gems jewelry store in Ashland and Victoria's Secret, a lingerie catalog. Reading from a prepared statement before being sentenced, Gwynallen, his voice shaky, said he regretted his actions. "I accept full responsibility for what I've done," he said. "I really understand the enormity of what I've done . . . I really deeply apologize." The community's trust in him was destroyed as well as his marriage, he said. He didn't indicate which marriage he was referring to: He was married to two different women at the same time when he was arrested late last year, although he was never charged with bigamy. "I hope that the emotion you are showing today is genuine remorse and not sorrow for getting caught," Judge Patricia Crain admonished the defendant. Feinberg told Crain she felt Gwynallen's remorse was real. "He genuinely has always seemed baffled about how he got into this," she said, noting that he voluntarily sought counseling. "He's making progress." The attorney noted that her client had been "terminated" from his job Wednesday. Since late last year, he had been working as a projects coordinator for the nonprofit National Federation of the Blind in Baltimore. Federation President Marc Maurer told the Mail Tribune late last month that he had been unaware of the charges against Gwynallen. He could not be reached for comment Friday afternoon. In a July 22 story in the Tribune, two former members of a neopagan group founded in Maryland by Gwynallen in the 1980s say he was accused but never charged with financial and sexual misconduct. Earlier this year, the defendant's wife, Maraji Gwynallen, repaid $5,205, the amount of the misappropriated Headwaters' money she allegedly received. The restitution money came from the sale of a home she and Gwynallen owned in Medford. In exchange, she will not be prosecuted. There was no settlement regarding his second wife, Allysen Kauppiner, who authorities say received $42,442 of the diverted funds for her own benefit. Both women have left the area. The ordeal has been difficult for Headwaters, Butterfield said. "I'm just glad we can finally put this to rest," he said. "Headwaters has so much important work to do. This dark cloud, this unfortunate event, has been following us around for way too long." In an earlier civil suit, Headwaters had received a default judgment against Gwynallen for the amount he was charged with stealing. Although Gwynallen did come up with $30,000 in restitution on Friday, Butterfield said the defendant still needed to demonstrate his sincerity in paying the money he owes. "All he has done so far is convince a relative to put a second mortgage on his home," Butterfield said. "And the other $5,000 or so came from his wife Maraji. In my mind, Rick still needs to show that he will provide restitution." However, if Gwynallen fails to pay restitution, he can be charged with probation violation, Butterfield said. Meanwhile, Headwaters, which has settled the debts left by the theft - some paid for personally by board members - wants to move on, he said. "It's time to get back to work," he said. The group, which had never before experienced embezzlement problems in its 25-year history, has reorganized to avoid similar thefts. Reach reporter Jill Briskey at 776-4485, or e-mail [email protected] Reach reporter Paul Fattig at 776-4496 or e-mail him at [email protected] Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2001 Mail Tribune, Inc.