Adoption Advocates International Closes UPDATED

By on 3-12-2014 in AAI, Adoption Agencies, Corruption

Adoption Advocates International Closes UPDATED

” Adoption Advocates International, a Port Angeles-based nonprofit that has placed thousands of orphaned children in homes across the country, is closing its doors.

“After 30 years as a nonprofit adoption agency that has placed 4,500 orphaned and vulnerable children from around the world as well as here in Washington state, Adoption Advocates International will be closing its doors to bringing more children into secured and loving homes,” said a statement from the nonprofit delivered to the Peninsula Daily News on Tuesday.

“These AAI children, adoption families, staff and board members celebrate what has been accomplished for so many and hope a better future can be obtained for all orphaned and vulnerable children everywhere.”

In a newsletter issued by email late Tuesday, Brad Collins, the nonprofit’s interim executive director, thanked staff members for their work.

“Their self-sacrifice is even more evident in their unbelievably hard work above and beyond the call of duty in trying to keep AAI going in the face of extremely large financial challenges over the last few years,” Collins said.

Collins did not return calls requesting comment. Neither did other board and staff members of Adoption Advocates who were contacted.

The nonprofit’s offices at 709 S. Peabody St. were locked Tuesday afternoon.

A woman who did not identify herself came to the office door and declined to comment on the closure to a PDN reporter, and then closed and locked the door.

From these offices, Adoption Advocates has matched children with parents in every U.S. state, as well as nine other nations.

The nonprofit places children — from babies to teenagers — from Ethiopia, Burkina Faso, China, Thailand and many other countries, including foster children from the U.S.

Collins became the nonprofit’s interim executive director in October. He also is a Port Angeles City Council member.

Merrily Ripley founded Adoption Advocates in 1983 and retired in the fall of 2011.

The agency has not named a permanent executive director.”
Adoption Advocates International in Port Angeles shuts down[Peninsula Daily News 3/11/14 by Jeremy Schwartz and Diane Urbani de la Paz]

“It is with such sad hearts that this final Adoption Advocates International newsletter is being sent out to our many loving adoptive families and supporters. After 30 years and with many strong adoption programs still going, AAI must cease connecting orphaned and vulnerable children with secure and loving adoptive parents. I would like to recognize the years of wonderful service for 4,500 adoptions by the dedicated staff who have been with AAI:

  • Gay Knutson, Director of Social Services and Burkina Faso Program Coordinator, 30 years
  • Kathy Sculley, Bookkeeper and Washington Foster/Adopt Program Coordinator, 28 years
  • Ky Bower, China and Thailand Program Coordinator, 17 years
  • Linda Lyver, Ethiopia Program Administrative Assistant, 9 years
  • Yvette Nichols, Washington Foster/Adopt Program Coordinator, 8 years
  • Salem Richards, Uganda Program Coordinator, 6 years
  • Johanna Sculley, AAI Administrative Assistant, 6 years

Although I have only been with the agency for the past five months, the new AAI Board of Directors and I can attest to the unwavering devotion and unflagging efforts that these AAI staff members have made for every adoption case. Their self-sacrifice is even more evident in their unbelievably hard work above and beyond the call of duty in trying to keep AAI going in the face of extremely large financial challenges over the last few years. Thank you to all the adoptive families and AAI donors who have sustained these incredible adoption programs for 30 years. We are all so very sorry to say goodbye.”

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REFORM Puzzle Piece

Corruption2

Update: “The Clallam County Sheriff’s Office is investigating a complaint against Port Angeles-based Adoption Advocates International regarding $7,000 a church in Colorado reportedly paid the nonprofit.

The nonprofit adoption agency, which had been in business for 30 years, announced Tuesday it is closed.

Brad Collins, who stepped in as interim executive director of the nonprofit in October, said Wednesday that he has not been interim executive director since Monday.

“My temporary interim position was up, and the board accepted my resignation,” said Collins, who is also a Port Angeles City Council member.

Sheriff Bill Benedict said Wednesday a detective has been assigned to the complaint filed against the adoption agency after the Port Angeles Police Department forwarded it to his office.

The complaint is not considered criminal at this time, Benedict added.

“Like all investigations, we’re not commenting on them until they’re complete,” he said.

Police Chief Terry Gallagher said Wednesday he passed on the complaint to the Sheriff’s Office to avoid a potential conflict of interest, referring to Collins’ City Council position.

On Tuesday, Collins had directed all comments about the agency to its board president.

Board President Suzanne Hayden said Wednesday she had not heard of the complaint and was not aware of any agency staff being contacted by law enforcement.

“I’m sure I would know if we had been contacted,” Hayden said.

“I can tell you there’s nothing criminal going on.”

C.J. Alderton, pastor of Patrick Crossing Ministries in Durango, Colo., said his church raised the $7,000 as partial payment to Adoption Advocates International to help a couple in the church adopt a 5-year-old boy from Uganda.

Alderton said he filed the complaint because he had learned Monday that Adoption Advocates was planning to close its doors.

Alderton said the check, issued by his church, was delivered Feb. 26 and cashed by the adoption agency March 3, adding that no one from the agency has returned his recent calls concerning the money.

“It’s not done until I see a check from [Adoption Advocates] in my mailbox,” Alderton said in a Wednesday phone interview.

“We’re going to stay on it.”

While the church has not heard from the adoption agency about the money, the family seeking to adopt the orphaned Ugandan boy has been contacted by Adoption Advocates staff about returning documents the couple has given to the agency so the adoption can move forward.

“They’re now doing due diligence on where to go from here,” Alderton said.

The couple began working with the agency last fall to adopt an orphaned boy from the Congo region of Uganda, Alderton said, adding that he had heard nothing but good things about the nonprofit.

Hayden said all families with adoptions in progress are being contacted to help them finish the adoption through other agencies.

Hayden, who is also an attorney for Clallam Public Defender, said the nonprofit has not taken in anymore funds as of Monday.

“Some [payments] are being returned,” Hayden said.

“It depends [on the] situation and whether services have been provided and those kind of things.”

Hayden, who became president last fall, said financial hardships for the nonprofit over the past few years have necessitated its closure.

“There are multiple factors, but I’m not going to comment any further than that,” she said.

Information on file with the Washington secretary of state shows that Adoption Advocates generated about $2.23 million in revenue and had expenses totaling $2.48 million in the fiscal year ending Sept. 30, 2012, with $695,370 carried over from the previous year.

Hayden said Adoption Advocates staff are contacting every family currently in the middle of the adoption process to give them documents necessary for adoptions to continue and refer them to other agencies.

“We’re making copies that are either going directly to the families themselves or to the new agency,” Hayden said.

“Everybody that’s in process, as far as I’m aware, has been contacted by staff to figure out how best to smooth a transition to another agency,” she continued.

Hayden, an adoptive parent herself, said the nonprofit’s closure has been especially hard since most if not all agency staff and board members are adoptive parents.

“It’s all personal to us,” Hayden said.”

Collins has been named in a sexual harassment complaint filed with the city of Port Angeles”

Sheriff’s Office investigating complaint against shuttered Adoption Advocates International in Port Angeles

[Peninsula Daily News 3/12/14 by Jeremy Schwartz ]

Update 2: “Citing just more than $595,000 in unpaid taxes, wages and refunds owed to adoptive families, Port Angeles-based nonprofit Adoption Advocates International has filed for Chapter 7 bankruptcy protection.

“There was just too much,” Adoption Advocates Board President Suzanne Hayden said Wednesday.

The nonprofit, which has placed 4,500 orphaned or adopted children from around the world and in the state, closed its doors March 10 after 30 years of operation.

Hayden said the nonprofit’s board voted March 10 to close the agency’s office at 709 S. Peabody St. and declare Chapter 7 bankruptcy, in which an agency or business completely shuts down and begins the process of liquidating all its assets.

Hayden, who came on as board president last fall, said the decision to file for bankruptcy came after years of financial troubles following the 2011 retirement of Merrily Ripley as executive director.

Ripley founded the nonprofit in 1983.

The voluntary petition for bankruptcy filed in the Western District U.S. Bankruptcy Court in Seattle on Friday, March 21, lists Adoption Advocates as having $459,445 in assets and $595,617 in liabilities.

According to the petition, the largest single claim held against the agency is $204,970 by U.S. Bank, which Hayden said holds the mortgage on the agency’s office.

John Peterson, a Kingston-based attorney acting as the trustee for the Adoption Advocates bankruptcy, said Wednesday he was just beginning the process of reaching out to those listed in the petition as having claims against the agency.

“I can’t say at this point who will get paid and who will not get paid. It’s way too early for that,” Peterson said.

In the coming weeks, Peterson said the 106 creditors listed in the petition will receive notices that they have potential claims against Adoption Advocates.

“That’s part of a long process of getting all this stuff taken care of,” Peterson said.

The petition lists as claims $21,785 in wages owed to attorneys and Adoption Advocate’s eight employees, which included Port Angeles City Councilman Brad Collins until the May 10 closure.

Collins came on as interim executive director in October.

In the months leading to the decision to declare bankruptcy, Hayden said staff were working without pay to try to raise funds, finalized as many adoptions as possible and sent refunds to families where it was appropriate.

The petition also lists dozens of families who had been working with Adoption Advocates to adopt children, with individual amounts owed to the families for services not yet given reaching a maximum of $7,000.

The bankruptcy filing comes as a Clallam County Sheriff’s Office investigation into a complaint against Adoption Advocates regarding $7,000 a church in Colorado paid the nonprofit has been closed.

“This is not a criminal matter. It is a civil matter to be handled through bankruptcy court,” Detective Tom Reyes, with the Sheriff’s Office, said Wednesday.

“This is just an very unfortunate situation,” Reyes added.

C.J. Aldteron, pastor of Patrick Crossing Ministries in Durango, Colo., filed the complaint earlier this month when he learned Adoption Advocates intended to declare bankruptcy.

Alderton’s congregation raised the $7,000 paid to the nonprofit as one of the final steps in helping a couple in the church adopt a 5-year-old boy from Uganda.

Alderton said Wednesday his church does not indent to take any legal action against Adoption Advocates concerning the $7,000.

“There’s no bitterness. It’s all forgiveness on our end,” Alderton said.

Hayden said Patrick Crossing’s check was cashed just days before the board made a final decisions to close.

At that time, the board was still struggling to maintain business as usual and hoping to remain open, Hayden explained, so the payment was seen as a normal course of business.

That was until the state Department of Revenue placed a hold on the agency’s bank account, preventing any more payments from being made, Hayden said.

The agency had been making monthly payments on back state business and operation taxes starting in tax year 2007, Hayden said.

Given the circumstances surrounding the Patrick Crossing payment, Hayden said she plans to reach out to Port Angeles churches as an individual to try to raise the money needed for the Durango, Colo., family to move forward with their adoption through another agency.

“We’re talking about a little boy who’s waiting,” Hayden said.

“These people have his picture in his hands. We’re just trying to get him home.”

The nonprofit, which celebrated its 30th anniversary in October, places children — from babies to teenagers — from Ethiopia, Burkina Faso, China, Thailand and many other countries, including foster children from the U.S.”

Adoption Advocates files for bankruptcy protection[Peninsula Daily News 3/26/14 by Jeremy Schwartz]

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