UPDATE: In a significant development, former nonprofit executive director Cheri Gerken, age 53, has reached a plea deal regarding allegations of embezzling over $136,000 from her organization. The decision, announced today, marks a critical moment in a case that has drawn widespread attention.
Gerken, from Moorhead, will plead guilty to a reduced charge of Class C felony theft, admitting to stealing between $1,000 and $10,000. This comes after a thorough investigation initiated in November 2024 when the president of Presentation Partners in Housing contacted Fargo police regarding unauthorized charges on Gerken’s company credit card.
The plea deal includes a 60-day sentence of electronic home monitoring, two years of supervised probation, 80 hours of community service, and a restitution payment of $3,179.22 to the nonprofit organization that aids homeless individuals. Originally charged with a Class A felony theft, which carries a potential 20-year prison sentence, Gerken’s amended charge limits her maximum sentence to five years.
Investigators uncovered that between January 2019 and November 2023, Gerken charged a staggering total of $267,280 to her company card. Of this amount, only $42,000 was associated with legitimate business expenses. Investigators flagged $88,698 as having unclear purposes, while $136,554 was definitively identified as personal spending unrelated to her professional duties.
Following the revelation of these findings, Gerken was terminated from her position. She later sent a handwritten letter to the nonprofit’s board, expressing remorse and admitting her misuse of funds. In her letter, she detailed her struggles post-divorce, explaining her inability to manage personal bills and care for her children without additional income. Gerken claimed she intended to reimburse the funds but ultimately found herself unable to do so, leading her to file for Chapter 7 bankruptcy in May 2024.
As part of the plea agreement, Gerken has waived her right to appear in court at her upcoming hearing, scheduled for November 20, 2024. This case has raised serious concerns about financial oversight in nonprofit organizations, highlighting the importance of transparency and accountability in managing funds intended for vulnerable populations.
Stay tuned for more updates as this story develops. The implications of Gerken’s actions extend beyond her personal accountability, shedding light on broader issues within nonprofit management and oversight.
