$3.7 million for cancer research used to buy Lady Gaga, Celine Dion tickets, feds say
Millions of dollars donated to a major cancer research foundation backed by big names in the music industry were embezzled over two years to pay for concert tickets and sporting events, prosecutors said.
Now the foundation’s former vice president is facing federal charges.
Melissa Goodwin was charged with wire fraud in the Middle District of Tennessee on Tuesday, Jan. 18, the U.S. Attorney’s Office said. From 2018 to 2020, the 55-year-old from Nashville served as the executive vice president and general manager of the T.J. Martell Foundation. She was fired after higher-ups discovered a trail of inconsistent financial statements.
The T.J. Martell Foundation is described on its website as the “music industry’s leading foundation” for cancer research. It was started in 1975 by American music executive Tony Martell in honor of his son.
The board of trustees includes executives from major record labels such as Universal Music Group, Big Machine Label Group and Warner Records.
Lynn-Anne Huck, interim CEO of the T.J. Martell Foundation, told McClatchy News in a Jan. 19 statement that they launched an internal investigation after discovering the alleged fraud 18 months ago. Goodwin was subsequently fired and their findings were turned over to the FBI. The foundation has since filed a civil lawsuit seeking to recoup an estimated $5 million in losses reportedly caused by Goodwin.
“It is utterly disgraceful that anyone, especially a trusted employee, would victimize a non-profit organization that provides vital funds to the fight against cancer,” Huck said.
Worrick G. Robinson, who is representing Goodwin, told McClatchy News she has “fully and completely cooperated in the investigation and is accepting responsibility for her role in this offense.”
“Ms. Goodwin will continue her cooperation to ensure the TJ Martell Foundation recovers money owed to it,” Robinson said. “There are additional facts that will come to light in the coming months that will provide more detail and clarity about this case.”
According to federal court filings, Goodwin had worked for the foundation since 2005 in various roles before she became executive vice president in 2018. Her job responsibilities included organizing foundation events, overseeing the budget, serving as the point person for an accounting firm and handling payroll.
Prosecutors said the foundation’s fundraising efforts include charity auctions, which Goodwin reportedly helped facilitate.
While most auction items are donated, court documents state, some are consigned — meaning they are borrowed for auction and the vendor who supplied them is paid the consignment price if they are successfully auctioned off. Goodwin is accused of misusing the foundation’s relationship with one such vendor in perpetrating the alleged embezzlement scheme.
Prosecutors said she used a corporate credit card from the foundation in her name to buy tickets to shows and events from websites such as Ticketmaster and StubHub. She also reportedly purchased “expensive and rare alcohols, plane tickets and hotel stays.”
“These tickets were not for a legitimate foundation purpose and included tickets to musical concerts such as Lady Gaga and Celine Dion, and some were to sporting events, such as Super Bowl LIV,” the government said.
Goodwin gave the tickets to an unnamed individual who runs a charity auction business in New York City, the government said.
Court filings didn’t explicitly state the purpose of the alleged scheme, but the T.J. Marcell Foundation said in its civil suit that Goodwin and the charity business owner resold the tickets to third parties for a profit or used the tickets themselves.
Goodwin is accused of spending roughly $3.96 million in foundation funds on tickets between 2018 and 2020. To hide the fraud, the government said, she forged credit card statements and other financial documents reviewed by the foundation’s CEO — including reportedly inflating the charity’s cash balance by more than $1 million at the end of 2019.
Goodwin additionally made payments on her foundation credit card using a bank account belonging to the charity auction business in New York, prosecutors said, and she forged signatures on high-dollar checks made on behalf of the foundation.
If she is convicted on the wire fraud charges, Goodwin faces up to 20 years in prison and a fine of $250,000. The government also wants her to forfeit at least $3.7 million.
This story was originally published January 19, 2022 at 1:00 PM with the headline "$3.7 million for cancer research used to buy Lady Gaga, Celine Dion tickets, feds say."
