July 26, 2001 | Read Time: 1 minute
By MICHAEL ANFT
A federal appeals court has ruled that United Way of America does not owe William Aramony, the organization’s former president, $2.4-million in pension benefits.
Mr. Aramony was convicted in 1995 of stealing more than $1.2-million from the organization. He is scheduled to be released from a federal prison in North Carolina on October 1.
The ruling, by Judge Pierre N. Leval of the Second Circuit Court of Appeals, overturned parts of two decisions made by a federal judge in New York, in 1998 and 2000. Those decisions said a pension agreement between Mr. Aramony and United Way was ambiguous in light of federal tax-code changes and did not explicitly say that if Mr. Aramony committed a felony he would not receive a pension.
But Judge Leval said the agreement between United Way and Mr. Aramony left no room for misunderstanding. “This was clearly a contract written in detailed and precise terms that intended to make its meanings unmistakably clear,” Judge Leval wrote.
In a prepared statement, Chris Amundsen, interim president of United Way of America, said that Mr. Aramony will be entitled to only $7,781 in pension benefits. Mr. Amundsen added that the organization “is pleased with the court’s ruling.”
Mr. Aramony had sued the organization in 1996, claiming he was owed nearly $4.4-million in pension benefits. A subsequent court decision reduced Mr. Aramony’s claim to $2.4-million.
Mr. Aramony, who ran United Way for 22 years, was fired in 1992 for spending the charity’s money on vacations, travel, and perks for himself and his friends. He was convicted on federal charges of fraud and tax evasion.
