June 17, 1999 | Read Time: 2 minutes
The U.S. Supreme Court has refused to consider an appeal by former United Way of America President William Aramony, who was convicted in 1995 and imprisoned for defrauding the non-profit organization. Mr. Aramony had challenged his seven-year prison sentence, arguing that it exceeds federal guidelines.
The Supreme Court, as is its custom, made no comment on its reasons for declining to review the case.
The appeal stemmed from a decision in the United States Court of Appeals for the Fourth Circuit, in Richmond, Va., in January that upheld Mr. Aramony’s prison term as well as the 55-month sentence of Thomas Merlo, a former United Way chief financial officer who was found guilty of fraud.
While upholding the prison sentences, the appeals court ordered a lower court to re-examine whether the men are able to pay fines that were levied against them in 1997. Mr. Aramony was fined $300,000, and Mr. Merlo $30,000. That issue remains unresolved.
In separate action, the U.S. Court of Appeals for the Second Circuit, in New York, heard oral arguments last week in United Way’s appeal of a decision to award Mr. Aramony pension benefits despite his fraud conviction.
In October, a U.S. District Court in New York awarded Mr. Aramony $4.4-million in benefits and interest under United Way’s pension plan. The district court also awarded United Way about $2-million for damages resulting from Mr. Aramony’s actions.
In its appeal, United Way is arguing that the district-court judge erred in interpreting United Way’s pension plan and in calculating United Way’s damages stemming from Mr. Aramony’s misconduct.
Mr. Aramony also is appealing the district court’s ruling. He is arguing that the judge made a mistake by not awarding him benefits under a separate, smaller pension plan and by denying his application for lawyers’ fees.
