Keith Noble, pleaded guilty. Noble was chief clinical officer of Alternative Opportunities, which provided mental-health, substance-abuse and other taxpayer-funded services in several states, including Arkansas. Noble also was a member of the nonprofit’s “Resource Team.”
The plea deal accuses unidentified colleagues of stealing, embezzling and misapplying more than $30 million. Included in the documents is the more than $17 million sale of the nonprofit’s management company, or “Entity A,” to a publicly traded corporation listed as “Company A.”
According to the Northwest Arkansas Democrat Gazette, four former executives of the nonprofit netted $4 million each through a deal in which the nonprofit paid more than $47 million to a publicly traded company over 10 years.
U.S. Securities and Exchange Commission records show the description of Company A matches a Stamford, Conn., holding company, and Entity A is W.D. Management LLC, which was jointly owned by Noble and four other Alternative Opportunities executives.
“The sale of WD Management to Providence was approved by the AO Board of Directors and has been separately been examined by independent auditors,” according to attorneys statements. “In addition, Providence was a publicly traded company during the relevant time periods, subject to SEC oversight and public filings.”