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Hospice's home sale questioned
By WILLIAM R. LEVESQUE, Times Staff Writer
CLEARWATER -- Marilyn and Donald Wieringa knew firsthand of the quality work at Hospice of the Florida Suncoast. They both were cared for by the hospice before they died of cancer, Mrs. Wieringa in 1999 at age 73, and her husband in 2000 at age 67. So in his will, Donald Wieringa left almost all the couple's assets to the hospice, including a Clearwater home. The hospice could sell the home and generate cash to help others. But Pinellas property records show that the hospice sold the property to one of its own employees at a price below what buyers paid for comparable property. The propriety of the sale was questioned this week in a lawsuit filed by a former employee, Fluffy Cazalas, who also accused the hospice of using donations to fund a for-profit subsidiary. Now Cazalas and her attorney ask whether the house sale was an insider deal that failed to get best dollar for the Wieringas' generous gift. "One has to question whether this is an arm's-length transaction," said attorney Jonathan Alpert. Hospice executive director Mary Labyak, declining to be interviewed, said in a letter that the home sale was fair and provided the hospice with the best return among several offers. "We recognize that ours is a sacred trust with our community and we are committed to good stewardship of that trust," she said. Labyak said an appraisal of the Wieringa property shows that the hospice's special gifts manager, Janet J. Ware, paid above market value. A copy of the appraisal, she said, was not immediately available and she promised to provide one when it was. She provided no information, as requested, about other offers made for the property. Charities always should avoid even the appearance of impropriety to reassure the public that donations are well spent, said the head of a charity watchdog group. "Even if a charity is able to demonstrate the rationale for a transaction involving an employee, the public perception of these activities is generally negative," said Bennett Weiner, head of the BBB Wise Giving Alliance, a charity watchdog in Virginia. "It's one reason most nonprofits seek to avoid them." Ware, 50, said in an interview that she knew the Wieringa house was available because of her job, which involves working with large donations such as the Wieringa estate. When Donald Wieringa died on April 14, 2000, he left an estate that included a house on Pine Haven Drive in Clearwater and other assets valued at about $230,000. The Wieringas didn't have any children. Wieringa gave $5,000 to a church and left the rest to the hospice. Labyak said offers were made on the house to the estate's personal representative. Labyak said, "The dollars raised exceeded other offers to purchase received by the personal representative." The personal representative, Ed Veclotch, declined to discuss the sale. "Expediting the sale avoided ongoing maintenance expenses, deterioration of property, the possible destruction of a vacant residence and real estate commission fees," Labyak said. Ware said she was treated like any buyer. "I was looking for a house," she said. "So I made an offer. I was the high bidder. It was appraised for very close to what I paid." Ware paid $84,600 for the house in July 2001, county property records show. That price was higher than the county's appraisal of $81,900. But the Pinellas Property Appraiser's Office said assessed value is usually 80 percent to 85 percent of true market value. With Wieringa's home, the county estimated comparable homes sold for about $99,400 in 2001. But all agree that a detailed, independent appraisal is the best measure of a property's worth, not county figures. Ware said the house was in disrepair and she made substantial improvements, which she refused to detail. With repairs, she said, the home might now be worth $30,000 more than she paid. A month after the sale, hospice attorney David Ridenour, who serves on the board of directors of a hospice subsidiary, examined the deal. In a memo, Ridenour wrote: "She was willing to pay above market value for the house. Since this is not an insider's deal whereby the employee would get the house under the (full market value) . . . I believe that this is good stewardship and not a breach of our ethics." Then Ridenour, who did not return a call for comment, added: "Note to self: As long as this (is) a one-time situation and does not become a regular practice." Emmett Coe, a board member of the Hospice Foundation of the Florida Suncoast, the hospice's fundraising arm, said he is untroubled by the sale. "You have no idea the lengths Hospice goes to prevent even the appearance of self-dealing," he said.
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