A former head of a Billings nonprofit has been charged with using the organization’s funds to furnish her home and fill her wardrobe.
Sheri Lynn Boelter, 55, allegedly used the company credit card while serving as CEO for New Day Inc. to shop for herself and her family, eventually spending “approximately $25,000 to $100,000,” according to charging documents filed Tuesday in Yellowstone County District Court.
Charges against Boelter followed an internal audit revealing discrepancies in spending, and a New Day board of directors member taking those concerns to law enforcement.
The number of items eventually seized by the Billings Police Department as evidence while serving a search warrant was such that BPD evidence technicians had to bring a trailer to haul them away from Boelter’s home, court documents said.
“New Day is aware of the legal matters involving a former employee,” wrote Jeff Berger, president of the New Day board of directors, in an email to the Gazette. “We are fully cooperating with the relevant authorities. The New Day board, staff and volunteers remain steadfast in our commitment to serving the Billings community by providing essential services for youth and adults. We are excited to continue showcasing the transformative impact of our programs and fostering positive change in our community.”
In January, BPD officers visited the New Day Mental Health Facility on the 1700 block of Lampman Drive in response to the embezzlement allegations. New Day, a nonprofit in Billings for over three decades, has a focus on mental health and addiction treatment for youth and adults. Along with the mental health center, the organization operates multiple youth therapeutic homes in Billings.
A member of New Day’s board of directors told police that an annual audit of the nonprofit’s finances included many purchases that the organization’s staff could not account for, court documents said. Those purchases allegedly included lingerie, a bedroom set, a designer purse and makeup, among other items.
An interim CEO then spoke with investigators, according to court documents, saying New Day staff compiled an entire list of items bought with the company credit card and could not be found at any of New Day’s facilities.
Boelter, who had left her job at New Day by the time BPD started their investigation in January, allegedly did not log out of the Amazon account she used to ostensibly purchase things for the nonprofit. Her payment history consisted of a multitude of clothes, furniture and appliances she bought for her own use and that of her family, court documents said.
Three staff members told officers that funding requests were made in their names, according to charging documents, but none of them had made those requests.
Boelter, a candidate for a license in clinical social work as of August of this year, had previously been the executive director of Tumbleweed, a nonprofit that serves vulnerable youth, particularly those who are homeless.
She left the organization in 2015 after employees complained that she had overstated how many homeless youth Tumbleweed had assisted in order qualify for more grant funding. An internal investigation showed no wrongdoing on Boelter’s part, and she later told the Gazette that she left Tumbleweed to recover from a torn esophagus.
Records with the IRS showed Boelter heading New Day as early as 2022. Tax filings from that year and 2023 showed her earning a combined total of $345,310.
BPD officers served Boelter with a search warrant at her home in early April, court documents said, arriving with a list of items she was accused of purchasing with New Day’s funds. Including those items previously mentioned, police seized armchairs, a video game console, shoes, an electric keyboard, a projector and a pressure cooker.
During their search, officers allegedly found a manila folder containing research on the potential consequences of embezzlement in Montana, and what legal strategies there are for defending against those charges.
“Prove furniture was shipped to sober living home, not the CEO’s residence,” was allegedly written on one of the 25 pages inside the manila folder.
Yellowstone County prosecutors have charged Boelter with theft of property by embezzlement and forgery, both felonies. If convicted of the former, she faces a minimum of a year in prison. Boelter is slated to make her initial appearance in court next month.
Earlier this month, the Billings Community Foundation announced that it had awarded New Day with a community impact grant, with those funding being dedicated to renovating classrooms on the nonprofit’s campus.
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