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DC’s AG claims that the fraternity officer has wrongly benefited from funds

DC’s AG claims that the fraternity officer has wrongly benefited from funds

A fraternity at Georgetown University is at the center of a legal battle involving a longtime member, the fraternity’s nonprofit fund and DC’s Attorney General.

A fraternity at Georgetown University is at the center of a legal battle involving a longtime member, the fraternity’s nonprofit fund and DC’s Attorney General.

In a civil lawsuit filed in the DC Superior Court in June, Karl Racine claims that a longtime officer of both Delta Phi Epsilon and its nonprofit fund accumulated power over decades and then used his position to get fundraising to buy his Georgetown – home.

It also claims that 80-year-old Terrence Boyle transferred the fraternity’s long-standing “Alpha House” – without the fraternity’s approval – to the fund, which then sold it below market value.

Georgetown House and Alpha House

According to the attorney general’s complaint, the Delta Phi Epsilon Foundation for Foreign Service Education paid $ 150,000 of Boyle’s $ 200,000 in advance to buy the home in 1990. It also reportedly paid 20% of his monthly mortgage payments and helped with both taxes and insurance premiums.

Boyle repaid the $ 150,000 to the fund eight years later, but Racine says “the fund did not repay any of its mortgage, tax or insurance payments” – nor did it receive “appreciation”.

The Brotherhood’s Alpha House – which was valued at $ 4 million in 2019 – was sold last year. 3401 Prospect St. NW represented over two-thirds of the fraternity’s assets from the beginning of 2020. However, it was transferred to the fund for $ 1 “without limitation or donation conditions” per. The complaint before the fund sold it to an LLC for $ 2.6 million.

“At the time of these transactions, the members of the fraternity had not given the necessary approval to: the fraternity’s donation of the Alpha House to the foundation; the fund – not the fraternity – entering into a contract for the sale of the house; or the foundation has no obligation at all to buy a new house for the benefit of the fraternity, ”the public prosecutor claims.

“Boyle was treasurer for both [Delta Phi Epsilon] units at the time of donation and subsequent transfer of Alpha House, with sole control over the financial statements of both units. ”

The fraternity is required to maintain a board of five members, but the complaint claims that since at least 2018, the board only consists of Boyle and two others.

Racine also claims that the foundation – which was founded in 1960 “to promote the calling of foreign service” through scholarships – “ceased to function” under Boyle’s control.

“No foundation funds have served the organization’s nonprofit purchase of awarding scholarships,” the complaint states.

‘Those things are nonsense’

Boyle denies wrongdoing.

“All this is nonsense,” he told The Washington Post in a story published Tuesday morning. And a lawyer representing Boyle, the fraternity and its foundation, told the Post that Boyle has not profited from the fraternity.

“It’s a crying shame that these clowns brought this suit,” Harvey Volzer told The Post. “[Racine] has no faithful factual basis for this complaint and he is fortunate that he has immunity from defamation suits because he is AG. ”

The suit seeks various reform measures, including court-appointed supervision and removal of Boyle from any leadership role.

Delta Phi Epsilon’s national organization is not named as accused in the public prosecutor’s complaint.

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