In July, after more than three years of investigative work and litigation, the former executive director of our pro bono client, Kaiser’s Room, was sentenced to 36 months incarceration for wire fraud and access device fraud after embezzling nearly all of the nonprofit organization’s funds.

Kaiser’s Room is a small not-for-profit organization that provides inclusive arts programming for individuals of all abilities, including those with a diverse set of needs. The organization is also notable for providing employment opportunities for New York City artists.

In the summer of 2021, partner Phara Guberman received a call asking for help from Kaiser's Room after its founder became aware of some irregular correspondence and strange charges on its debit card statement. Phara and partner Ken Breen then began an internal investigation that uncovered a years-long fraud and elaborate cover-up by the then-executive director, Philip Dallmann. Phara and Ken partnered with contacts at BDO Alliance USA, who provided thorough forensic accounting services pro bono. The combined team presented its findings to Homeland Security Investigations. The case was ultimately charged by the Southern District of New York; you can read the press release announcing Dallmann’s arrest here.

Dallmann pled guilty and entered into an agreement with the government in January 2024. His plea was conditioned on making full restitution, but that could take years. Regardless, Kaiser's Room has since canceled its classes and upcoming performances, leaving children of all developmental profiles without a place to dance or act and without an explanation. We congratulate Phara and Ken for their efforts to bring Dallmann to justice, and just as critically, we commend them for their continued advocacy for Kaiser’s Room, including their efforts to rebuild with new corporate governance and controls and continued representation of Kaiser’s Room as a victim and in its restitution petition. You can learn how to support this fantastic organization here.