Lawsuit Against High School Booster Club Draining Athletic Department

A fundraising club for the Newark Memorial High School Athletic Department is spending thousands of dollars on a lawsuit filed by one local mom who took issue with its bookkeeping methods.

Jennifer Snyder filed a complaint against the Newark Memorial High School Cougar Booster Club in Alameda County Superior Court on June 2, 2013, claiming that the chairperson of the club was negligent in her duties and had committed fraudulent acts. Snyder is the parent of one child who graduated in 2012 from the high school and another in seventh grade. She believes the Booster Club’s President Stacy Kelly mismanaged the non-profit organization’s finances.

“Based on information and belief, sloppy and shoddy management of the Booster Club’s finances transpired under Ms. Kelly’s watch, as well as sums of money going missing or unaccounted for,” Snyder writes in a blog post on Patch. “It has been reported that funds from Booster Club fundraisers are consistently under the sole control of Ms. Kelly, with no accountability as to when and if they are deposited into the Booster's bank account.”

Kelly is the sole remaining member of the club after members quit their positions.  She said tried to appoint other members, but that Snyder’s actions had created discord among the Newark community that made that challenging.

“They’re all afraid of her,” she said. “I think I’m the only person who has ever stood up to her…Because if she’s suing me, she’s going to sue them.”

Since the original complaint was filed, court staff has processed more than 60 multi-page documents related to the lawsuit, according to public records. Snyder was admitted to the State Bar of California on June 2012, although Kelly said Snyder had been threatening to sue for years. 

Snyder also demanded an audit of the non profit’s financial documents.

“In my 23 plus years doing this job, I’ve never had a request like this,” said Elaine Nielson, chief business official for the Newark Unified School District. “They are a non profit organization that’s approved as a fundraising body. The school district isn’t responsible for their finances. I’m doing it as a courtesy,” she said. 

Snyder claimed the audit of the documents had not been completed because Kelly refused to relinquish the documents in a blog post on Patch and on Patch’s Facebook page. Nielsen said that is not true. She is in possession of the documents and organizing them, so that they can be given to a third party auditor. She has not had the time to finish that task, she said. She wanted it to be clear that she is neutral on the issue because she wants to help.

Throughout this litigation, the Booster Club's money has been used to pay for lawyers to defend the club. Kelly said her attorney’s fee was $10,000, as of December 17, 2013. She said that she was forced to use the Booster Club’s funds, because the club was named in the lawsuit. “She was suing me and suing the Booster Club, so everything had to be filed twice,” she said.

Funds raised by the club are normally used by the athletic department to purchase equipment for students.  

“I can’t walk away right now,” Kelly said. “My attorney says I can’t do that…I’m tired of being slandered, she said.  

Snyder has said that she wants to join the club, but has not been allowed to do so.  In light of this, she wants Kelly to step down. In a discussion on our Facebook page, she said she wanted a new board to be formed with her as a club member.  

The issue has sparked debate about the appropriatness of using Booster club funds for a legal defense. Some of our Facebook fans are astonished that Snyder would complain about Kelly using Booster Club funds to pay for attorney fees.

One said: “You are the one making her pay out that money. Do you expect her to pay out of her own pocket. In my opinion she has every right to have the boosters pay since that is who she represents. If you don't like it drop the case.”

Another said: “From what I understand Ms. Kelly has done alot for the athletes of NMHS over the years and to me this sounds like it comes down to ‘one person not liking the other.’ To go as far as slandering her name all over Facebook seems ridiculous!”

Snyder joined the conversation and responded: “If you folks are members of the Booster Club and you understand that Board elections are not allowed, Ms. Kelly will not share a full picture of the Booster financials, she does not comply with NUSD rules for school connected organization and is not complying with the school district audit and you are satisfied with that and the majority of the membership feel the same, I will drop my suit.”

Alameda County’s Superior Court of California will review the case again on February 5, 2014.