Facing fallout over alleged financial fraud, Idaho American Legion could see shakeup

The embezzlement allegations against a former commander of the Idaho American Legion have developed into the biggest crisis in the nonprofit’s history here and led many of its members to question the statewide organization’s longtime leadership.

Charles “Abe” Abrahamson, who for several years served as an executive overseeing the Boise-based nonprofit’s finances, is suspected by fellow senior leadership of embezzling at least $750,000 of its funds. The Idaho Statesman was first to report the allegations against Abrahamson, which are at the center of an Idaho State Police investigation.

Abrahamson, 54, a former U.S. Marine who later served five years in the Idaho Army National Guard, has yet to be arrested or charged with a crime, according to Idaho court records. But details continue to surface about his suspected handling of hundreds of thousands in finances for the veterans organization — money used to fund programs for children and communities across Idaho.

Through both interviews and public and Legion records, a Statesman investigation has accounted for hundreds of thousands of those alleged missing Legion funds. The records showed that Abrahamson is accused of defaulting on an internal loan, stealing an endowment fund for adolescents and selling Legion real estate without the nonprofit’s knowledge.

He’s also suspected of draining the organization’s bank and investment accounts of about $370,000, and hiding it by falsifying documents, according to longtime American Legion member Bob Skinner, Idaho’s national executive committeeman and a member of the internal committee formed to investigate where the nonprofit’s money went.

“It’s just crazy,” Skinner said in a phone interview with the Statesman. “I still lay awake at night sometimes thinking, ‘Why did he do this? Why would he do this to fellow veterans? Why would he do this to kids with cancer?’ It’s just phenomenal to me that someone would do that to that level.”

Idaho State Police spokesperson Aaron Snell directed the Statesman to the agency’s public records filing process when asked this week for an update on the investigation. ISP’s public records division last month denied a request for agency documents related to Abrahamson, citing police investigation records that may deprive someone of their right to a fair trial or interfere with law enforcement proceedings.

In the months since fellow senior Legion executives suspended Abrahamson without pay from his statewide adjutant job in April, a number of the roughly 8,000 members in Idaho have called for a change in leadership. The nonprofit is hosting its annual convention this weekend in Mountain Home — the same city where Abrahamson made his home — and it will include votes on who should steer the organization over the next year and beyond.

Members at various levels, from state executives to the local chapters known as posts, appear to be at odds over the direction of the Idaho American Legion. The one thing they seem to agree on is ensuring that such a devastating incident, which threatens the Legion’s core mission for years to come, never be allowed to happen again.

To that end, the Eagle chapter last month passed proposed amendments that its members plan to put up for a vote at this weekend’s convention to add two new statewide leadership positions. Eagle Post Commander Ralph Perez said he also hopes to see some accountability.

“The overwhelming consensus is that the American Legion Department of Idaho needs new leadership and additional safeguards to prevent this kind of scandal from ever happening again,” Perez said in an email to the Statesman. “As it has been for years under the current ‘Good Old Boys Club’ running the department, if you speak out or raise concerns, as many members have done, you are marginalized, threatened and ostracized.

“That is how Abe Abrahamson was enabled to do what he has allegedly done,” he added. “It makes no sense to allow the same foxes guarding the hen house to stay in those positions after all the hens have been slaughtered.”

Abrahamson, who was commander of the Idaho American Legion from July 2018 to July 2019, has a criminal record that includes a felony grand theft conviction, repeat probation violations and several years of prison time, court records showed. As more seeps out about his history and his alleged theft, questions have grown about who in leadership knew what and when, and how the nonprofit focused on services for veterans and children should move forward.

“Abe had convinced us that all these things were fine, here was the documentation and we were just led down the primrose path,” Skinner said. “I agree that we should have been looking closer. … But I think the wrong thing to do is to get rid of the people who are actually the people right now leading us down the path to recovery.”

The Moscow Nine

The scope of Abrahamson’s alleged fraud has come into sharper focus over the past few months. In recent years, his suspected activities spanned the state, including Latah, Blaine, Gooding and Bonneville counties, a Statesman investigation has documented.

Previously reached by phone seeking comment on the allegations against him, Abrahamson hung up on a reporter.

For former Moscow Post Commander Robert Isenberg, 71, a retired lieutenant colonel who served more than 30 years in the Army, the recent revelations are a long time coming. He was among nine members at one of Idaho’s oldest local chapters who was kicked out of the American Legion in 2020 by Abrahamson and other statewide leaders over what he said were contrived misconduct allegations.

“They were looking for ways to get to the post’s financials,” Isenberg told the Statesman in a phone interview. “No doubt in my mind, that was their long-term goal.”

Isenberg’s grandfather returned from serving in World War I in Europe and helped establish the American Legion in Milwaukee in 1919, he said. For decades, his entire family — his father and his wife’s father, his uncles, brother, son and his son’s wife, who each served in the military — were proud members of the American Legion.

That is, Isenberg said, until he was removed by Idaho statewide executives without his knowledge while he was out of town. He called the experience traumatic, and said he was shown a restraining order and given no recourse to challenge the charges against him. He said the national American Legion then didn’t respond to letters he wrote over his concerns about what was happening in Idaho.

Today, when he meets fellow veterans and younger members of the military looking to get involved with local organizations, he said he actively steers them away from the American Legion.

“They ask what groups to join, and I make sure to tell them loud and clear, don’t waste a nickel on the American Legion,” he said. “They let me down and every veteran in Latah County.”

The experience of being removed after 47 years at the Moscow post was equally disheartening for Ralph Holick. Over that time, he had twice served as commander of the post, and was its financial officer when he said Abrahamson and others kicked him out.

The former U.S. Navy aviation electrician was served a list of charges, which he said were trumped up, about failing to follow various bylaws. But Holick, 81, argued that he didn’t receive proper due process according to the organization’s bylaws, referring to the formal hearings that led to his dismissal as a “kangaroo court.”

“It was held similar to a trial, and that’s being polite about it,” Holick told the Statesman by phone. “In his opening statement, the individual handling the hearing said this is all about the money. It wasn’t about bylaws.”

In the aftermath of the widespread embezzlement allegations against Abrahamson, Holick said he feels somewhat vindicated. He said he was pleased to hear of Abrahamson’s removal, though he said it doesn’t repair his relationship with the American Legion or fix what happened to him and the other eight expelled members.

“I’m still bitter, you bet,” Holick said. “But my response to everybody that I’ve had dealings with is that I’m not out for revenge, I’m out for justice. And it’ll always be a sore spot — always.”

Idaho Mission Blue loan scheme

In 2021, at the peak of the COVID-19 pandemic, Abrahamson, in his role as adjutant, went to the Moscow post seeking money. Ultimately, Abrahamson’s handling of the smallest amount of money he is accused of embezzling wound up leading to his downfall, Skinner said.

Abrahamson approached the new post leaders in Moscow to secure a $20,000 loan that would be spread around the state to other posts with lesser means to survive looming financial hardship during the pandemic, then-Moscow Post Commander Rand Lewis told the Statesman. Abrahamson dubbed the program “Idaho Mission Blue.”

With an attorney, Lewis drew up a two-page loan agreement, which Abrahamson signed. The Statesman reviewed a copy of the document, which Lewis confirmed was authentic, and it required full repayment with interest after two years.

“He was supposed to provide us with written updates as to what was going on and the status of the loan throughout the life of the loan, and he never did that,” Lewis said by phone. “So we kind of got a red flag starting to flash fairly quickly on it, but we assumed the loan would be paid off with the interest as agreed to.”

In February 2023, the loan came due, but Lewis said his repeated inquiries on when to expect payment received no response from Abrahamson. The spring and summer bled into the fall, and Lewis said he got his attorney involved, sending a demand letter for the money to the national American Legion when the statewide nonprofit never responded.

“I don’t know how national works, that’s way above my pay grade,” said Lewis, who served 30 years between the Army and Air Force, including as a combat engineer. “But all of a sudden, we started getting interest in our problem.”

In late November 2023, the national organization asked Idaho Commander Doug Huffman to look into and resolve the matter, Huffman explained to statewide membership in a May 2024 email obtained by the Statesman. Huffman, who is seeking a second term as commander this weekend, said Abrahamson told him that the Moscow funds were a grant instead of a loan.

“That was the dispute, but he signed a piece of paper that said it was that loan,” Skinner told the Statesman, referencing the two-page agreement.

Ultimately no evidence exists that any chapter ever received any financial assistance through the loan, Skinner said.

“He gave us a document to show the different posts that had been lent money to operate the post, and we talked to some of those posts, and that document” was a fabrication, Skinner said.

The statewide nonprofit now has a monthly plan in place, Lewis and Skinner said, to pay back the loan with interest to the Moscow post by the end of 2026.

“We had a signed contract, which really kind of couldn’t be overlooked like the other stuff was,” Lewis said. “So we think we were at the cutting edge of finally bringing him down.”

Legion discovers falsified investment records

Not long after Abrahamson coordinated the loan out of Moscow, an Idaho Legion member desired to establish an endowed scholarship fund to help needy students who wished to attend summer and vocational programs. The donor provided the organization with $100,000, Skinner said, and Abrahamson met with the man to collect the money and get the fund started.

After some time passed, Skinner told the Statesman that the donor asked him to find out where the money was invested, given the intent was to use the accrued interest each year to fund the scholarships. When pressed, Abrahamson in February this year provided documents to the Idaho American Legion’s fellow executives that showed $30,000 invested in a low-interest savings account at Wells Fargo and about $70,000 at an investment firm for nonprofits in Idaho Falls called Trimp Wealth Management, Huffman told membership by email, and Skinner confirmed to the Statesman.

A copy of the Trimp investment fund statement was obtained by the Statesman from a former Idaho American Legion executive committee member who requested anonymity out of fear of retaliation. That person told the Statesman that they provided the same record, along with several other documents, to the Idaho State Police to assist with their ongoing investigation into Abrahamson.

Skinner confirmed the authenticity of the Trimp investment statement to the Statesman, as did former statewide Commander Ron Adams, who serves today as regional commander for the organization. Adams told the Statesman by phone that he was present at the February meeting where Abrahamson provided the documents.

But statewide Legion leadership discovered that both the Wells Fargo and Trimp statements were fabricated, Skinner said. He said he learned that none of the $100,000 had ever been invested in either financial institution.

“I found out the whole thing was a scam,” said Skinner, who lives in Idaho Falls and commands that local post. “There’s no money there.”

‘They got a deal’ on historic Legion building

When a local chapter in the American Legion falls below a dozen or so active members or interest in the organization wanes in a community, the statewide nonprofit gets involved to try to boost membership, Skinner said. Or the post’s charter is turned in and its assets handed over to the statewide group until members seek to reestablish. American Legion bylaws dictate those assets should be held for at least three years before discharge, he said.

After decades in operation, the Hailey post folded and its assets, including its historic two-story, 5,400-square-foot building on Main Street, were turned over to the statewide nonprofit. The building’s cornerstone contains ore from the mines that were active in the area when it was built in 1910, and its white brick edifice was shipped in from Salt Lake City, according to a city historical document .

In March 2023, the Hailey building was sold to a retail tenant on the first floor, according to Blaine County Assessor’s Office records obtained by the Statesman. The warranty deed on file in that office includes Abrahamson’s signature and the legal description states that the entire building sold in the real estate transaction.

Local real estate firm Blaine County Title helped sell the Main Street property, the warranty deed showed, and Daryl Fauth, the company’s president, confirmed this with the Statesman by phone. He said the building sold for $92,000, despite the property being valued by the assessor at more than $718,000 last year. Its assessed value has since increased to almost $808,000, Blaine County Assessor Jim Williams said in an email to the Statesman.

“If they bought it for $92,000, they got a deal,” Williams said.

Married couple Randy and Barbara Murphy own Valley Tile & Floor and bought the building. Randy Murphy told the Statesman by phone that he didn’t recall the purchase price, but that the building was set to be condemned and torn down to sell just the land, so instead they bought it, and he made necessary improvements himself.

“That’s why I got it how I got it,” Murphy told the Statesman. “I put thousands of dollars in that building to bring it to where it will still stand.”

He said he considered the deal closed and is not part of Abrahamson’s problems in the wake of the embezzlement allegations.

Fauth declined to comment when asked how he first came in contact with Abrahamson, citing privacy concerns over real estate transactions. He also declined to say whether the deal for the historic building created any concerns for him given the considerable difference between the final sale price and the county’s valuation.

It is unclear what year the Hailey post turned in its charter or whether the Legion’s three-year hold on its assets was followed, as required by the nonprofit’s bylaws.

Charlene Lorino, the commander for the region in Idaho that includes Blaine County, said by email that the Hailey post’s closure predated her time in the position, and directed the Statesman to Skinner for additional questions. Lorino now serves as the acting state adjutant in Abrahamson’s absence.

Skinner said he recalled hearing about the sale of the Hailey building “in passing,” but didn’t know where its proceeds ended up. The Finance Commission would approve any such sale, and Skinner was unaware whether such authorization was granted.

During that time, Abrahamson continued in his role as adjutant, the only full-time paid position at the Idaho American Legion. As the senior executive who directly assisted the statewide commander, he collected a yearly salary of about $45,000, plus $12,500 for expenses and another $1,500 to attend the annual national convention, Skinner said.

‘Biggest mistake of my life’

Former Gooding Post Commander David White has waited eagerly as information has trickled out about Abrahamson’s alleged financial misconduct in the Idaho American Legion.

White, 76, like many honorably discharged veterans — a requirement to join the American Legion — sought to continue serving his community once he retired after 20 years with the Army and Air Force, including time in Vietnam. In rural Gooding County, he became commander of his local chapter and went to work, investing his time, money and effort into documenting the post’s history, restoring the Legion’s local stature and fixing up its building, the War Memorial Hall.

“Have you ever tried to do something that’s bigger than yourself? I saw an opportunity,” White said in an interview with the Statesman. “So I joined the American Legion because it encompasses all veterans, not just the ones that served in a combat zone, and I’ve still got fond memories of my 20 years in the service.”

When White ran into some hang-ups in 2019, now three years in as the leader of the Gooding post, he said he reached out to the statewide nonprofit for help. Abrahamson responded.

Seated inside his Gooding home — mostly decorated with photos from a bygone era, framed military awards and the memories of his decorated career — White said that was where it all went wrong.

“It was the biggest mistake of my life,” he said.

Abrahamson showed up to the Gooding post and began asking questions about the building and the chapter’s finances, White said. Before he knew it, White was removed from his position on three allegations of conduct unbecoming a Legionnaire, a copy of which he provided to the Statesman, in addition to his email correspondence about it with Abrahamson.

Abrahamson — a resident of Elmore County — appointed himself the Gooding post’s commander, records showed, and another recent member named James Woodward was placed in the post’s adjutant role, which he maintains today.

White showed up to the next chapter meeting to contest the allegations and his removal, and said he was issued a trespassing warning from Gooding police and told not to return. White has been trying to restore his reputation ever since.

A few months later, in February 2020, Abrahamson brokered a deal to buy out the local chapter of the Veterans of Foreign Wars that co-owned the building, county assessor records showed. White said the Gooding post’s new leadership then built a path to liquidating American Legion property, including potential sale of the building, through revised bylaws, a copy of which White obtained and shared with the Statesman.

“It’s a real estate swindle,” White said. “There are no meetings of the American Legion. It is a phantom post.”

Today, the American Legion building on the corner of 3rd Avenue West and Idaho Street in Gooding sits mostly vacant. A placard in the window of the rundown cinder-block edifice references private event rentals, a Statesman reporter observed on a visit. The building maintains tax-exempt status as a charitable military organization, though Idaho statute says any revenues from business activities unrelated to the organization’s core mission could lead to reassessment and possible fees.

In April, the Gooding County Board of Commissioners asked Woodward to submit paperwork to renew the building’s tax exemption. Included in the records, obtained by the Statesman through the county assessor’s office, were minutes from a Gooding post meeting in mid-April, which listed attendance of four members in chapter leadership, including Woodward and Dan Danuser.

Danuser, a 99-year-old World War II veteran, according to chapter records, lives in Gooding and at points has been listed as commander of the local post. Reached by the Statesman on his cellphone, Danuser denied ever being the post commander or having attended any meetings.

Dennis Frisby, a prior Gooding post commander, told the Statesman in an interview at his home near War Memorial Hall that Woodward appointed him in 2021 to the position without his knowledge. Frisby said he and Woodward later spoke, and Woodward told him that the commander role came with no responsibilities, “because there are no meetings,” he said.

Woodward, who told the Statesman that he is disabled with back problems, including from his service in the Army Corps of Engineers, said he didn’t recall the conversation with Frisby. The Gooding post currently has about 30 members and only rents out the building “sometimes,” he said.

Frisby resigned the commander position in a letter to the national American Legion in April 2022, a copy of which the Statesman reviewed, out of concerns about being held liable for the organization’s finances. He cited in his letter never having seen a membership roster, bank statement or the income generated through rental of War Memorial Hall.

“It’s a defunct organization,” Frisby told the Statesman. “I’m not going to be a commander, there’s nothing to command.”

Open criminal investigation in Gooding County

Woodward said it was a shock to him when he received a letter from the Idaho American Legion about the embezzlement allegations against Abrahamson. He last spoke with Abrahamson about a year ago, Woodward said, and sometimes worked half-days “here and there” doing oil changes and vehicle tuneups at an auto repair shop that Abrahamson and his wife, Robin Abrahamson, used to own in Twin Falls.

“Abe, as far as I can tell, was a good guy,” Woodward said. “Kind of down to earth.”

The Gooding County Board of Commissioners extended the War Memorial Hall’s tax-exempt status for this year. Gooding County also provides a yearly $4,500 donation to the American Legion toward its mission. Since 2019, when Woodward took over as the Gooding adjutant, that totals more than $23,000, according to an accounting obtained by the Statesman from the county clerk through a public records request.

The same month the building’s exemption was extended this year, Woodward changed the mailing address for those payments to his personal residence in Gooding, Idaho secretary of state records showed. He told the Statesman that the public funds mostly go toward the War Memorial Hall’s utilities.

White has continued to voice his concerns about the Gooding post’s operations to the county commissioners, who told White they forwarded them to Gooding County Prosecutor Trevor Misseldine. In an email to the Statesman, Misseldine said he could not comment because of an open criminal investigation concerning the matter.

White said he has persisted in garnering statewide and national attention about the alleged misdeeds within the state’s American Legion. He said he watches closely as the nonprofit deals with the fallout of Abrahamson’s removal and the alleged financial fraud.

Like White, Holick, the former longtime member of the Moscow post, said he hopes to see renewed mission and sense of purpose for the Idaho American Legion in the days and years ahead.

“I was just trying to do what was right for the post, for the American Legion and for the membership,” he said. “I was treated like basically a criminal. We’re talking about veterans — American veterans. Is that any way to treat your fellow servicemen?”