Message to the SIO Community
May 22, 2023
Dear SIO Community,
The Society for Integrative Oncology is an international nonprofit organization established 20 years ago to advance evidence-based, comprehensive integrative healthcare to improve the lives of people affected by cancer. We are staffed by a group of volunteer healthcare providers, researchers, and patient advocates. Due to our volunteerism business model, it is necessary to outsource full time management of our business which includes finance, accounting, human resources, event planning, legal and other needs. Since inception, SIO has frequently relied on third-party consultancy firms specializing in nonprofit management for these tasks. In 2020, the consultancy firm of Hauck & Associates (“H&A”) in Washington, DC was selected as its outside management company after completing background checks and reviewing references. H&A started in that role on January 1, 2021.
On May 10, 2023, we learned that Graham Hauck, the principal manager at H&A, pleaded guilty in federal court to misappropriation of funds of another nonprofit organization managed by H&A. SIO quickly terminated H&A, and initiated a series of risk management measures, including securing its assets to prevent further losses; retrieving paper and electronic files and financial books and records; revoking Hauck’s access to bank accounts, internet sites, keys, credit cards and the like; arranging for new management, accounting and operations solutions to replace H&A; hiring a forensic accountant, Chess Consulting LLC, to detect any misappropriation of SIO funds and determine the amount involved; and retaining as outside counsel white collar criminal attorney, Zach Hafer at Cooley LLP (formerly with the US Attorney’s Office), Michael Sanders, a tax exempt tax attorney and professor at Georgetown Law Center and his partner, Malcolm Sandilands, a corporate attorney, both at Blank Rome LLP. We are working with conference specialists in Canada to ensure that our Banff 2023 conference is not disrupted by these developments, and with other specialists to ensure that the SIO’s other activities continue with the minimum possible adverse impact.
Internally, SIO has appointed its first general counsel, Nelson Lin, to coordinate our legal response, which includes crisis management and supervision of recovery, while the Executive Committee of the Board of Trustees has worked continuously since learning of Hauck’s guilty plea to transfer every single management function out of his firm’s hands. That process continues, and we will make every effort to secure the return of any funds that were misappropriated from SIO; our criminal counsel has reached out to Hauck to pursue prompt restitution of any misappropriated funds.
The Board of Trustees will report progress biweekly to SIO members as it continues to investigate this matter.
We thank you for your understanding and patience and we will continue to do everything we can to resolve this in an expeditious and efficient manner.
Sincerely
Linda Ellen Carlson, PhD, RPsych
President, Society for Integrative Oncology, Inc.