Section 2 suffering from financial irregularities

Posted at: 10/01/2012 3:30 PM | Updated at: 10/01/2012 4:12 PM
By: Bill Lambdin

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MENANDS - The financial records of the sanctioning organization for high school sports in our area of New York were in the possession of the former Amsterdam School District Business Manager Roger Seward, whom associates tell WNYT killed himself last June.

Seward had resigned and retired suddenly the year before from the Amsterdam School District after a large amount of pornography was found on his work computer.

Yet he remained in his position as treasurer of Section 2, with the assistant treasurer position vacant.

According to a letter from Section 2 President Paul Jenkins, the auditing firm trying to review Section 2's finances was unable to meet with Seward for over a year before his death.

Since then, another accounting firm has been trying to recreate financial records.

The letter says some paper records were found, but no electronic files. Also there is no record that Section 2 had filed any tax returns with federal or state government since 1978.

Accountants say they found $350,000 in bank accounts for Section 2. The organization gets money for operations from dues paid by member schools, as well as some gate receipts and merchandise royalties.

The organization's attorney, Lawrence Paltrowitz, tells NewsChannel 13 that was more money than they expected to find, but cannot answer whether any money is missing or whether there is any evidence Seward was dipping in to accounts.

Toward the end of the letter sent to all the area schools, Jenkins writes, "I completely understand the concern that many of you may have regarding this situation." 

As it tries to clear up irregularities and unanswered questions, Section 2 has ceased operation of its old corporation. A new entity has been formed to continue Section 2 activities.