April 26, 2018
 
Former Nonprofit President Barred from Further Service

January 18, 2018 — The former president of the National Graduate School of Quality Management, a Falmouth nonprofit that provides advanced education in quality systems management and homeland security, has been barred from serving on the board, or as chief executive, at any Massachusetts charity as part of a settlement with the attorney general’s office.

The AG's office on Tuesday said a consent judgment, entered in Suffolk Superior Court, resolved allegations that Robert Gee, former president of the National Graduate School of Quality Management (NGS), "breached his fiduciary duty by collecting excessive compensation and other benefits from the school."

The consent judgment also required Gee to pay $150,000, which will be transferred to a charity in Massachusetts.

“In Massachusetts, we rely on leaders of charities to be careful stewards of our charitable assets,” said AG Maura Healey. “We had alleged that Dr. Gee abused his position, and as a result of this settlement, he is barred from leading any Massachusetts charitable organization in the future.”

The AG’s office said it filed suit against Gee in 2014, alleging that he breached his fiduciary duty to NGS by benefitting from "unreasonable arrangements" with the school, including the receipt of excessive compensation, the use of a vacation property in the Caribbean, and luxury vehicles.

The AG’s Office had alleged that Gee’s level of compensation was not comparable with those of his peers and was unreasonable given the size, assets, or complexity of the institution.

According to a report in The Boston Globe, Gee was paid $732,891 in 2009 when NGS had 400 part-time students.

"Gee also provided his wife with a $100,000 annual salary, and the school gave the couple two new Mercedes-Benz automobiles and footed the nearly $200,000 bill for their two-week annual timeshare in the US Virgin Islands," the paper reported.

Gee was terminated from all employment at NGS in September 2012, according to the AG's office.

In 2014, NGS entered into an agreement with the AG's office to create a new board of directors with strict reporting requirements and monitoring by the AG’s office. At the time, the AG's office said, the school also agreed it would "not engage in any deceptive advertising or misrepresent the nature of its educational programs."

Gee's LinkedIn profile identifies him as founder, president, and ex-officio board member of NGS from 1993 to 2012.

For the year ending June 30, 2016, NGS reported $2.7 million in revenue, of which $12,000 came from contributions and grants, and $2.7 million in expenses, according to its most recently available federal tax filing.

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