Bellingham children’s nonprofit treasurer acquitted of embezzlement, sues board members
The former treasurer of a Bellingham children’s nonprofit who was accused of embezzling more than $29,000 from the organization has been acquitted.
Heather Anne Pavlosky, 55, of Bellingham was acquitted of all charges on Jan. 20, after a bench trial in Whatcom County Superior Court. A bench trial is decided by a judge rather than a jury.
Pavlosky was charged with four counts of second-degree theft and three counts of first-degree theft, according to court records.
Pavlosky and her sister Erin “Abby” Franklin founded a nonprofit organization called Loving Space Programs, which was later changed to Programs to Lighten the Lives of Adults and Youths. The nonprofit organization provides play and learning opportunities for children and their families, according to previous reporting in The Bellingham Herald.
The nonprofit’s business status is listed as active, according to the Washington State Secretary of State.
The Loving Space School, run by Franklin, is under two different limited liability corporations for which Franklin is the governor, according to the secretary of state.
Pavlosky was treasurer and a board member for the nonprofit until December 2018, according to a trial brief filed by her attorney, Michael Brodsky.
Pavlosky was accused by two board members in 2018 of embezzling $29,332.64 from the nonprofit during the prior seven years. In the trial brief, Brodsky said that Pavlosky had not embezzled the money, that is was money owed to her as part of accounting services she performed outside her role as treasurer, the court records state.
Brodsky’s trial brief stated there were several board meetings where it was made clear that board members knew Pavlosky was charging the board for services, such as tax preparation, bookkeeping and accounting, performed outside her role as treasurer.
Pavlosky was ultimately found not guilty by a judge on all counts and her criminal case has been dismissed, the court records show.
Civil lawsuit
In mid-October 2021, Pavlosky filed a civil lawsuit in Whatcom County Superior Court against Susan C. Hemingson and Sandy M. Sewell for allegedly making false statements that led to Pavlosky’s arrest and subsequent bench trial, according to court records.
Sewell has been a board member of Programs to Lighten the Lives of Adults and Youths since 2012 and president since 2016. Hemingson has been a board member of the nonprofit since 2016, the court records state.
According to Pavlosky’s lawsuit, at a board meeting in 2018, Hemingson and Sewell allegedly told other board members that Pavlosky had stolen money from the nonprofit. Pavlosky’s lawsuit alleges that Hemingson and Sewell knew their statements were false and that Pavlosky’s work for the organization was not being done for free, the court records state.
Pavlosky is suing Hemingson and Sewell for defamation, publication in false light, intentional infliction of emotional distress and intentional/tortious interference with business expectancy.
Pavlosky is seeking damages in an amount to be proven at trial, the records show.
In response to Pavlosky’s lawsuit, Hemingson and Sewell deny that there was an agreement for Pavlosky and her accounting firm to be compensated for the services provided to the nonprofit, or that they were aware of such an agreement, according to court records.
While Hemingson and Sewell admit to speaking about potential theft, they deny their statements were false, the records show.
Hemingson and Sewell allege they were acting within their capacity as directors of the organization and conducting their duties described under state law.
Hemingson and Sewell ask the court to dismiss Pavlosky’s lawsuit with prejudice.
As of Jan. 26, Pavlosky’s civil lawsuit is still pending in court, according to court records.
This story was originally published January 27, 2022 at 5:00 AM.
