Court holds six volunteers liable after director’s subsidy fraud

Six volunteer board members of the now-closed Odense Rehearsal Room Association have been ordered to pay approximately 7.7 million kroner in compensation to Odense Municipality, DR reports.

The ruling was issued by the District Court in Odense. The municipality had sued the six volunteers and the association’s former director, seeking a total of 7.7 million kroner, which it says the association received in excessive subsidies.

Former chair Jesper Bøggild-Christensen said the board members were disappointed by the outcome.

“It was not the judgment we had hoped for, but it is not the worst possible judgment either. But it also does not quite feel as though we have received the justice we should have had,” he said.

The former director of Kansas City, a music venue whose premises and operations were managed by the association, was sentenced to two years and six months in prison in February for his role in the case. That ruling has been appealed.

The association submitted incorrect and inflated membership figures to the municipality. The former director was responsible for applying for subsidies and provided false information about members’ ages, causing the municipality to pay too much.

However, the court stated that the board could not avoid responsibility by allowing someone else to handle subsidy applications.

The board members may not have to pay the full amount themselves. Five can be held liable for a maximum of 1.5 million kroner each, while a sixth can be held liable for a maximum of 500,000 kroner.

The former director must also indemnify the board members for any amounts they are required to pay to Odense Municipality. This means they can seek equivalent sums from him if they have to make payments under the judgment.

The board members’ lawyer said they were considering whether to appeal.