Red Cross Criticized for Settling Fraud Case

The American Red Cross’s decision to settle a court case involving the fraudulent use of donations has triggered protests, with critics saying the decision shows that the charity places too high a priority on avoiding bad publicity, reports The New York Times.

The case involved Ronald P. McKeown Jr., the former executive director of the southeastern Connecticut chapter of the Red Cross, who was charged with stealing more than $120,000 from the organization. Mr. McKeown committed suicide before the case could go to trial.

The Red Cross settled for less than half the stolen amount from its insurance company. Officials at Red Cross headquarters, in Washington, said that pursuing the lawsuit would have been too expensive.

In an unrelated case, a federal court judge in New Jersey Thursday dismissed the bulk of a lawsuit brought by a former Red Cross employee who alleged that the charity failed to immediately alert regulators about contaminated blood, reports the Associated Press.