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LEDGER IN-DEPTH
As Aldersgate’s finances became shaky, a new report cites an ‘extensive amount of purchases’ on employee credit cards
◼️ Regulators detail charges for Tiffany bracelets, room service in Beverly Hills, plane tickets to Hawaii and ‘luxury resorts in prime locations’ for conferences
◼️ N.C. to extend oversight of east Charlotte retirement community for another 150 days
◼️ Aldersgate CEO says it has tightened spending rules and changed leadership
State insurance regulators are continuing to investigate the finances of Aldersgate, located on a 231-acre campus off Shamrock Drive in east Charlotte. It has encountered financial troubles and replaced its CEO. (Photo by Kevin Young/The 5 and 2 Project)
by Cristina Bolling
North Carolina regulators spent months combing through millions of dollars of credit card charges made by employees of the financially struggling east Charlotte retirement community Aldersgate, and on Friday, they released a report showing what they called lax credit card policies and questionable purchases of travel, alcohol, trips and gift cards.
The N.C. Department of Insurance (NCDOI), which regulates the financial aspects of continuing care retirement communities, started an investigation of Aldersgate’s credit card purchases when an initial review of the nonprofit’s expenses turned up evidence that for the past several years, credit cards had been used to make “an extensive amount of purchases,” in some months exceeding $200,000, regulators wrote in their report.
At a time when Aldersgate’s financial difficulties were mounting, the report found that the company had “inadequate policies” on card use and approval and failed to “reduce credit card charges to necessary expenses only.” And it faults Aldersgate for “excessive travel charges,” “excessive gift card purchases” and “questionable alcohol charges,” among other deficiencies — and provides plenty of examples of charges expensed to Aldersgate, including room service and bar charges at a Beverly Hills hotel, plane tickets to Hawaii and a round of shots at a Plaza Midwood bar.
The 38-page report is the latest piece of evidence of the financial troubles state officials have been working to explore and help Aldersgate untangle in the last couple of years. The report alleges no criminal malfeasance, but it did come with a warning that if an Internal Revenue Service audit finds that someone at a nonprofit uses funds for personal gain, the person could be sanctioned and the organization could lose its nonprofit status.
Aldersgate is under an order of supervision from NCDOI, which means that state officials are overseeing Aldersgate’s finances as the community works on a plan to get on solid financial footing.
Aldersgate has had a string of years plagued by operating losses, mounting debt, failed plans for a second campus at Shalom Park in south Charlotte and rising costs due to Covid.
Nearby 4 years of charges examined
In the credit card probe, regulators zeroed in on the period of Jan. 1, 2020, through Oct. 31, 2023, during which the report said Aldersgate staff made nearly 26,000 credit card charges totaling almost $8.7M on three separate credit card accounts for three Aldersgate-related entities: the Aldersgate retirement community, the umbrella organization Aldersgate Life Plan Services and the Aldersgate At Home home health care business.…
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Today’s supporting sponsor is Landon A. Dunn, attorney-at-law in Matthews:
The official line from the city of Charlotte on reported Silver Line cutback: Some ‘modifications’ might be needed, ‘transparent evaluation process’ to come
One of last week’s biggest news stories was that the proposed Silver Line light rail segment between uptown and Matthews is apparently being ditched. To win approval for the city’s overall transit plan from the General Assembly, local leaders are coalescing around the idea of curtailing spending on rail projects — which is apparently dooming a portion of the Silver Line.
Matthews Mayor John Higdon said the town was getting a “raw deal,” and that Matthews officials were told about the cutback two weeks ago by Charlotte City Manager Marcus Jones. Higdon said Jones told Matthews officials that the Independence Boulevard/Monroe Road corridor would be served by bus rapid transit instead of light rail. East Charlotte leaders said they were disappointed, too.
But Jones hasn’t weighed in publicly on the revised plan, which is apparently being devised in private conversations among city and town officials. We asked the city if Jones would care to confirm the conversation, deny it or elaborate on it.
On Friday, The Ledger received this response from a city spokesman:
The purpose of the [Metropolitan Transit Commission’s] currently adopted 2030 Transit System plan is to give people an option to move safely, reliably and conveniently across our region and to guide growth, density and economic development.However, it is not a fiscally constrained plan.
If a funding source is realized this year, the specifics of that fundingwill be used in evaluating, updating and prioritizing the Transit System Plan. That may involve looking at modifications to the proposed transit mode, alignment or terminus in one or more corridors.
CATS will conduct a transparent evaluation process with public input to develop recommendations.If we focus on why we need to build transit, we can figure out what works best for all our residents and businesses.
In some cases, BRT [bus rapid transit] may provide a better solution to transit in our respective communities by delivering high-capacity transit faster, at lower cost and with less disruption to the residents and businesses.
Many of the same benefits associated with light rail are achievable with BRT, and highly successful BRT systems have been built by our peers around the country and cities around the world. Additionally, there are national examples of BRT supporting transit-oriented development.
—TM
A bishop’s ring with special meaning
Bishop Michael Martin was ordained and installed last week as the new leader of the Catholic Diocese of Charlotte, and with the new role comes some new garments and accessories all bishops wear — including the traditional bishop’s ring.
Asked by The Ledger last week to describe his ring, Martin had a unique story:
It’s really a blessing. A buddy of mine that I’ve known for years whose name is Paul Winicki is a jeweler in Baltimore. We went to the same high school. … I went to him, and I said, “I need a ring for my ordination. I have some gold. I have my dad’s high school ring — my dad died back in 1994 — I’d like to melt that down.”
I’m not really a jewelry guy, but I said, “If I came up with a concept that I have in my head, would you be able to carry it out?”
He said, “Without a doubt.”
And so the idea I had was of a small boat, a boat like Peter the fisherman would have used: a plank wood boat that is on the sea and from which he was invited to go out into deeper water and fish for a greater catch. And so that’s what the artisans at Paul’s shop designed.
Martin celebrated his first Mass as bishop Sunday at the Ballantyne amphitheater in front of a crowd of thousands.
—CB
You might be interested in these Charlotte events
Events submitted by readers to The Ledger’s events board:
JUNE 5-JUNE 29: Charlotte Squawks 19: Go Pluck Yourself!, showtimes vary, Booth Playhouse, Charlotte. Broadway meets “Saturday Night Live” meets the Queen City in Charlotte Squawks, an annual comedy stage show poking fun at politics, pop culture, sports and all things Charlotte through satire and musical parodies. $24.50 & up.
SATURDAY, JUNE 8: Charlotte Sustainability Summit, 8:30 a.m. to 2:45 p.m., The Dubois Center at UNC Charlotte Center City. The Charlotte Sustainability Summit will include multiple workshops and discussions from different nonprofit organizations, city and county leaders to highlight the impact of collaborative efforts in advancing sustainability in Charlotte. $30 regular admission, $20 for students and non-profits.
SATURDAY JUNE 8 AND 22: Juneberry Jams | Farm & Music Festival, 4:15-9 p.m., Juneberry Ridge, Norwood, N.C. Juneberry Jams is back for its 4th season featuring original singer/songwriters, fresh folk, and classic rock. Experience the rhythm of the ridge and the bounty of summer on June 1, 8, & 22. $25 - $50.
◼️ Check out the full Ledger events board.
➡️ List your event on the Ledger events board.
In brief:
Planners give 👍 to controversial rezoning: Charlotte’s planning staff is recommending in favor of a controversial rezoning proposal in the Piper Glen area, after the developer dropped the number of planned housing units to 566, down from 640. Some residents in the area oppose the plans by RK Investments on 53 acres between Elm Lane and Rea Road, saying it will add to traffic, detract from the character of the area and disrupt nearby bald eagles. An advisory committee of the Planning Commission will consider the request Tuesday, and it could go to the City Council within weeks.
Brewery fined in fatal fall: Charlotte’s Wooden Robot Brewery was fined $2,000 by the N.C. Department of Labor in connection with the death of the brewery’s co-founder, who fell through a skylight while working on the roof in February. (Observer)
Apartments vs. brewery dispute uptown: The owner of Hippin’ Hops Brewstillary on Brooklyn Village Avenue uptown says management company Greystar has ordered its hours to be cut back following noise complaints from the adjoining Savoy apartments. Hippin’ Hops’ owner says the cutback leaves the Black-owned brewery’s future in the space uncertain. (QCity Metro)
‘Tech heaven’ store opening: Large tech store Micro Center is holding its grand opening on Friday at the Woodlawn Marketplace shopping center on South Boulevard. The chain is known as a “tech heaven” that carries a wide range of electronics and computers. (Biz Journal, subscriber-only)
‘Teachers’ village’ proposed: The city of Charlotte is exploring the possibility of teaming up with the county, Charlotte-Mecklenburg Schools and private investors to build a “teachers’ village” that would provide affordable housing to 200 teachers and their families. (WBTV)
Road named for Coach K: The N.C. Department of Transportation has renamed a stretch of N.C. 751 near Duke University’s campus in Durham as “Coach K Highway” after former basketball coach Mike Krzyzewski. UNC Chapel Hill fan Gov. Roy Cooper said the highway “will no doubt inspire others to travel the road to their kind of greatness.” (Duke Chronicle)
Sampling legal cannabis: A writer for Charlotte magazine sampled five legal cannabis products from a Charlotte dispensary and describes how they made her feel. (Charlotte magazine)
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Executive editor:Tony Mecia;Managing editor:Cristina Bolling;Staff writer: Lindsey Banks; Business manager: Brie Chrisman, BC Creative
