Embezzling Ex-Martell Exec Pleads Guilty
• Melissa Goodwin, a former executive at the T.J. Martell Foundation pleaded guilty Tuesday, Feb. 8 to federal charges stemming from accusations that she embezzled $4 million from the music industry-supported cancer charity.
As reported by Billboard, Goodwin entered a guilty plea in Nashville federal court to a single count of wire fraud over the scheme, in which prosecutors say she abused her position of total control over the foundation’s financial operations, then concealed her actions through phoney bookkeeping.
According to prosecutors, Goodwin used a company credit card to purchase approximately $3.96 million in concert and sporting event tickets, including for Lady Gaga, Celine Dion and the Super Bowl. She also allegedly bought plane tickets, alcohol and hotel stays. Goodwin then turned some of the items over to the owner of a charity auction business to resell. Prosecutors also allege that Goodwin falsified credit card statements, created fake expense reports, and replaced the ticket expenses with other vendor names to make the charges appear to be legitimate foundation expenses.
Goodwin will be sentenced on May 20. She faces up to 20 years in prison, a forfeiture of $3.7 million, and a fine of up to $250,000. But she has also purportedly cooperated with prosecutors, which means they could recommend less time. However, Goodwin is still facing separate civil lawsuits from the foundation, filed against her and others allegedly involved in the scheme. Tuesday’s guilty plea does not pertain to those other cases.
The T.J. Martell Foundation for Cancer Research was formed by record executive Tony Martell in 1975, in memory of his son, T.J., who died from leukemia. Supported primarily by the music industry, T.J. Martell holds multiple annual charitable events in conjunction with the music community has so far raised more than $280 million.
After the hearing, the T.J. Martell Foundation issued a statement that reads, “While today’s guilty plea and eventual sentencing will provide some sense of justice, it will not provide closure. We have filed and are pursuing civil litigation against those who we believe may have been complicit with Ms. Goodwin and profited from her illegal activity, as well as those skilled professionals who failed to identify her scheme, allowing it to continue unchecked. We will move forward and continue the work of the Foundation and expect to announce plans in the near future.”
