Published in the April 19, 2017 edition
By DAN TOMASELLO
LYNNFIELD — The state Attorney General’s office is currently investigating the financial records of Lynnfield Youth Football and Cheerleading (LYFC).
According to a copy of civil investigative demands filed in Suffolk Superior Court on July 8, 2016, Attorney General Maura Healey’s office is currently reviewing information “in order to determine whether charitable funds have been applied to charitable purposes and if breaches of trust have been committed in the administration of Lynnfield Youth Football and Cheerleading, Inc., a public charity.”
WBZ-TV “I-Team” Reporter Ryan Kath aired a segment on the investigation last week, coming nearly two years after the Villager ran a story about parent discontent about the program on April 22, 2015. Kath, similar to Wakefield Daily Item Reporter Mark Sardella, spoke with a handful of anonymous parents who expressed their concerns about the program. Concerned parents agreed to share their concerns with both media outlets, but asked that their names not be used because they have children in the program.
“You see these people in the community. It’s uncomfortable to speak out,” said an anonymous parent in the WBZ report. “There’s a fear of retribution. If you have a kid in the program, do you need to worry about playing time?”
According to a copy of a written compliant filed, the Attorney General office’s was requested to investigate current LYFC Commissioner Wayne Shaffer; former Selectman and LYFC Commissioner Tom Terranova; and former LYFC Board of Directors member Steve Berardino.
The complaint alleges Terranova, who owns the Danvers-based accounting firm Terranova and Associates, resigned as commissioner due to the fact his children were no longer participating in the program. Shaffer, who works at Terranova’s firm, was subsequently named LYFC commissioner.
“After resigning, (Terranova) takes a position as Cape Ann League Youth Football commissioner,” reads the complaint. “Wayne Shaffer was Lynnfield Youth Football treasurer, and we brought it to his attention that there is a conflict of interest. They (Shaffer and Terranova) hire a woman, Jit Lee (Billings), from Tom’s accounting firm to handle the books (ledgers) from Lynnfield. Wayne takes (a) position as treasurer for Cape Ann League Youth Football as well as (LYFC) commissioner.”
The complaint alleges people concerned about the potential conflict of interest did not “want to get involved for fear of retaliation” because Terranova was a selectman at the time.
“Steve Berardino is the sole apparel distributor for Lynnfield, who owns State-Line Graphics,” reads the complaint. “All three are best friends and have been running (LYFC) solely for the last 10 years. They will not allow anyone to form a board and have transparency. We believe the monies are being funneled through his company.”
After receiving the complaint, the AG’s office filed two civil investigative demands in Suffolk Superior Court, which were sent to Bank of America and State-Line Graphics. According to the Commonwealth of Massachusetts Corporations Division, Berardino is listed as the secretary and director of State-Line Graphics.
The demand sent to Bank of America, 1 Post Office Sq., on July 8, 2016 requested “any and all bank accounts” opened by or having Terranova, Shaffer, Billings or Berardino as signatories from January 1, 2011 to the present. The demand requested copies of “all canceled checks (including front and back); deposit slips; account statements; credit card statements; documents reflecting wires or electronic fund transfers; signature cards; signature authorization forms; account opening or closing documents; copies of identification submitted to Bank of America; and any other documents recording transactions and account histories with or between Lynnfield Youth Football and Cheerleading, Inc.”
Additionally, the demand sent to Bank of America requested financial information listed under “alternative names” such as Lynnfield Youth Football, Inc.
The AG’s office also sent a civil investigative demand to State-Line Graphics, 6 Victoria St., Everett. The demand requested Berardino to provide copies of invoices and “any other documents recording transactions and account histories with or between Lynnfield Youth Football and Cheerleading, Inc. and State-Line Graphics, Inc.”
Tax forms from 2012 that were obtained by the Villager listed Shaffer as LYFC president, Berardino as director and Billings as treasurer. Silvie Terranova and former Fire Chief Tom Bogart were listed as directors, and Kerrianne Allain was listed as clerk. The 990-EZ Form stipulates the program earned $97,337 in revenue in 2012 and made a $13,195 profit.
The tax returns from 2013 revealed LYFC’s revenue plummeted significantly to $52,382 and the program lost $26,878. The tax returns from 2014 indicated the program earned $105,816 in revenue and made a $25,351 profit.
Cape Ann Youth Football Vice Commissioner Bryan Segee informed the Villager in an email Terranova “was voted off the board” around three years ago.
“Wayne is still the treasurer and has been for at least the past five years,” said Segee.
In the story that appeared in the April 22, 2015 edition of the Lynnfield Villager, parents said that despite paying some of the highest fees in the Cape Ann League, they have seen very little new equipment purchased in recent years. Having up-to-date equipment is a matter of safety for the kids, the parents said, especially in light of recent national news coverage of concussions and other common football injuries.
“We haven’t gotten any new uniforms or equipment for over six years,” one parent claimed, adding that shoulder pads were not up to standards and helmets were 10 years old.
Another parent asserted that while Lynnfield Youth Football and Cheerleading does refurbish a few helmets every year, programs in other towns were investing in new anti-concussion helmets and taking steps to address other outdated equipment.
Parents said they wanted to see some of the fees they pay re-invested in newer equipment.
“It has to go back to the kids,” one parent insisted.
Parents told Kath LYFC went on a spending spree and purchased new helmets, uniforms and pads after concerns about the program’s finances starting circulating around town.
Reaction
Attorney General Deputy Press Secretary Emily Snyder said, “we cannot confirm or deny investigations” in an email sent to the Villager.
In a phone interview with the Villager, Terranova and Shaffer’s attorney, Bradford Keene, said, “we have no comment” on the investigation.
When asked by Kath in the WBZ segment if the program’s funds were used inappropriately, Shaffer commented, “absolutely not.”
Berardino declined commenting on the investigation in a phone interview with the Villager. In an interview with Kath, Berardino said he was unaware about the investigation. After Kath showed Berardino a copy of the demand, Berardino said, “my secretary must have got it.”
“I don’t know what you’re talking about,” Berardino added.
When asked if Lynnfield Youth Football and Cheerleading’s funds were being used inappropriately, Berardino commented, “are you kidding me? They have more money in their bank account than any other football thing.”
The AG’s office has not issued a report on the allegations.
— Mark Sardella contributed to this report.
