7m. Dollars Stolen From Kenny Fund

Press, Volume CII, Issue 30145, 31 May 1963, Page 11

7m. Dollars Stolen From Kenny Fund

<A.Z Press Association—Copyright)

MINNEAPOLIS, May 29. Five men, including a former Mayor of Minneapolis, were convicted today for defrauding the Sister Kenny Foundation of 7 million dollars in charity donations. United Press International reports.

The verdict concluded a 10-week mail fraud trial tn which the Governmen’ charged the defendants wth concealing the money from collected donations Evidence showed that the defendants had gathered about 20 million dollars in donations

The prosecu’ion charged Marvin L. Kline former

executive director of the Foundation, two other officers of the Foundation and a Chicago mail fund collection corporation which conducted nation-wide solicitation campaigns from 1952-60 with the swindle Kline, who is aged 58. was one of the institute’s founders and former Mayor of Minneapolis George Zimmerman. a former book-keeper: Philip Koolish, aged 71; Koolish's son. David, aged 43; and John Carnell. aged 50; were the ifficers of the three Chicago firms

The Government charged hat Kline assured the Chicagoans of a contract to landlc Kenny solicitations ind. through Zimmerman “oncealed the actual amounts trom the Kenny board of ii rectors

Kline is already under a 10-vear prison sentence for grand, larceny Kline was convicted in April 1961 tor raising his own foundation salary (mm 2i>.000 dollars to 48000 dollars without authority

Iht trial elicited evidence that lavish gifts were also given Kenny executives by the operators of fund collection firms The Koolishes operated the New Century Corporation Empire Associates and Le Marge Mailing Service—al! fund-raising companies lhe Kenny Foundation was reorgan sed in 1960 when the scheme was uncovered and was recently g ven a clean bil’ of health by a national aud.ting firm