Durham Nonprofit Faces Scrutiny Over Unpaid Employees

Durham, North Carolina — The chief financial officer of a Durham-based nonprofit is speaking out after multiple allegations of unpaid employees have emerged. CJF America’s CFO, Nick Gallardo, addressed these concerns in a statement to WRAL Investigates on August 1.

According to the statement, some CJF America employees “experienced delays in receiving compensation” due to unforeseen issues with the organization’s payment processing infrastructure. The nonprofit clarified that these issues were not due to an inability or unwillingness to pay staff.

Sarah Krueger of WRAL Investigates encountered Gallardo at the Gipson Play Plaza shortly after obtaining the organization’s statement. Despite attempts to engage in conversation, Gallardo initially avoided her for several minutes, citing phone calls.

When finally approached, Gallardo acknowledged the problem, stating, “So, what we’re doing is working with our attorney and our HR specialist to handle the situation. We are completely aware of what’s going on with everybody, and we’re making sure that we address the situation appropriately.”

Krueger pressed Gallardo on why employees had not been paid, to which he responded, “I have no problem speaking with you, but I’m supposed to be watching over the children right now, so I hope you can respect that.” The camp where the unpaid workers were scheduled was reportedly chaotic, as noted by Michelle Beckwith, an executive assistant for Our Youth Matters (OYM), who leased her venue to the nonprofit.

Beckwith revealed that OYM is owed $6,400 for the summer camp event, saying, “It was chaos. They were running around. They didn’t have any supervision….that is where my heart lies, is with the kids who have to endure this type of treatment.”

Another worker, Justin Ferrell, claimed he is owed roughly $5,000 for a week’s work with CJF America. “Whereas we might not ever see payment for the work that we did for those guys, hopefully the scales of justice will lean in our favor,” he said.

The Durham Police Department is currently investigating claims of unpaid wages linked to the camp, with the state’s Department of Labor also conducting its own inquiry. Further details from the Department of Labor will only be released once the investigation concludes.