Colorado American Legion charter suspended: "We're not able to function correctly"
The Colorado Department of the American Legion, which offers a range of services to thousands of military veterans in Colorado, has lost its charter to operate for at least the next year after it was accused of financial mismanagement, misappropriation of funds and questionable accounting practices.
Commander Annette Johnson, who oversees the Colorado organization told CBS News Colorado, "I have been instructed by my attorney to say, 'no comment.'"
Characterized as the largest veterans' service organization in Colorado, the American Legion headquarters in Denver oversees dozens of posts around the state and provides emergency benefits for veterans, including career, education and family support along with guidance for veterans on how to navigate their VA benefits. The American Legion has about 21,000 members in Colorado spread across 160 posts.
The national American Legion voted on June 10th to suspend the Colorado chapter's charter saying in part it operated in "an environment of dysfunction."
All assets were frozen and the national organization indicated it intends to reorganize the Colorado chapter. CBS News Colorado obtained a forensic investigation of the Colorado chapter from June 4th which covered 2021 and 2022 operations. The investigation found "significant discrepancies" in financial records. The audit said "There is an indication of fraudulent activities" and that the organization had "inadequate internal controls" and "lack of oversight."
Dan Diefenderfer, who served in the military and has volunteered with the Colorado American Legion for 15 years, told CBS News Colorado the charter suspension "really puts a big impact on the things we can get done."
He said he was unaware of the Colorado organization ever having had its charter suspended before.
The June charter suspension froze the organization's bank accounts, he said, and led to volunteers like him being told their services were no longer needed. The organization's webpage has been stripped of any information.
"When we have our veterans assistance fund locked," said Diefenderfer, "Its a huge deal."
The National American Legion would not answer specific questions about what occurred, but earlier documents indicated they intend to install their own personnel in Colorado and attempt to iron out the problems that led to the suspension.
The mother of a U.S. Army veteran in Colorado told CBS News Colorado she feared the suspension would lessen participation in the organization's programs: "So the membership -- which is decreasing -- will decrease even more." She predicted American Legion funding to help veterans would shrink in the months ahead.
Member dues and donations help fund the organization. The American Legion also raises money from raffles and other fundraisers.
Diefenderfer said he is doing "a lot of soul searching if I want to volunteer with this organization any longer."
While Colorado's American Legion headquarters in Denver had its charter suspended, local American Legion posts around the state are open, working hard for veterans, still responding to their needs and requests.
