HOLYOKE — A former Ward 2 city councilor and executive director of Nueva Esperanza pleaded not guilty in court Thursday to a charge that he embezzled money and paid himself more than his agreed-upon salary at the nonprofit organization.
Nelson Roman, 32, of Chicago, was arraigned in Holyoke District Court on a single count of embezzlement of $250 or more. The embezzlement charge is specific to people who work at a voluntary association or society. Roman was represented in court by attorney Daniel D. Kelly, of Springfield. Judge Bruce S. Melikian presided over the arraignment and Roman is due back in court March 16.
According to the criminal complaint filed by Holyoke Police Detective Steven Rogers, police were first notified of possible embezzlement in late 2018, when the nonprofit’s then-treasurer Rosa Pantoja reviewed Nueva Esperanza’s finances following the revelation that Roman had accepted a new job outside of Massachusetts.
Rogers wrote that Pantoja said Nueva Esperanza has historically operated on a small budget bolstered by money received from rental properties. Pantoja told Rogers that it appeared that Roman had removed property belonging to the nonprofit from its office prior to her visit to review finances, including his personnel file and receipts of purchases, and that he had erased video surveillance, according to court documents. Pantoja said finance records showed “numerous purchases” from Amazon that could not be located.
Roman resigned from Nueva Esperanza in late 2018. Attempts to reach Roman and Kelly for comment on Thursday were unsuccessful.
According to the police report filed in court, Pantoja said Roman could spend up to $5,000 without approval from the board of directors, and that she was concerned Roman had used the money for an outside venture of Roman’s unrelated to Nueva Esperanza, the Palante Theater Company.
Court documents state that Roman, whose salary was $30,000 a year and who was in charge of payroll, allegedly paid himself $36,708.60 for 45.45 weeks of work in 2018. According to Rogers, Pantoja calculated $10,456.68 in allegedly unauthorized Nueva Esperanza funds paid to Roman.
Pantoja told Rogers that Nueva Esperanza had recently used money to pay for seven people, including a friend of Roman’s, to take a trip to Puerto Rico in November 2018 to aid in hurricane recovery efforts.
Prior to the trip, Roman allegedly told board members that travel expenses would come from outside donations. Rogers later learned from interviews with board members that the board did not authorize any money for the Puerto Rico trip.
A review by Rogers of a Nueva Esperanza bank statement from a debit card in Roman’s name revealed withdrawals that covered the airfare for all seven people on the trip. According to court documents, some trip members were asked by Roman for $500 for airfare costs, while some were not.
Rogers also subpoenaed a detailed transaction and account history for approximately 80 Amazon purchases. Rogers allegedly found a variety of clothes purchases, as well as a “Spirit Of The Warrior Native American-Inspired Onyx And Stainless Steel Ring.”
Rogers was also told by Pantoja of a found receipt totaling $1,165 at Music Theatre International, which Rogers allegedly learned was for a production of the Palante Theater Company.
In a recorded interview with Roman and his attorney, Rogers wrote that Roman defended his salary by bringing the agenda and minutes of a May 2018 board meeting. Roman told Rogers that he had approached then board President Irene Feliciano-Sims, who allegedly told Roman she would “fight” for a pay increase, a claim Feliciano-Sims later denied. Neither the agenda nor the minutes documented any pay raises for Roman, Rogers wrote.
In regard to the Puerto Rico trip, Roman maintained that he had told each person on the trip they were to pay $500. A $2,500 withdrawal on Nov. 5 from the High Street PeoplesBank branch was earmarked for the cities visited on the trip and for gas and other miscellaneous expenses, he said.
“Mr. Roman freely admitted that other than the funds donated … all expenses generated from the mission trip to Puerto Rico were paid for with Nueva Esperanza monies,” Rogers wrote.
Roman allegedly also admitted to using the organization’s debit card for personal transactions “by accident,” specifically the stainless steel ring and for smocks he wore during art classes.
Officials at Nueva Esperanza told Rogers after the interview that Roman never offered to pay for the incurred expenses.
Michael Connors can be reached at mconnors@gazettenet.com.