- The Washington Times - Tuesday, November 22, 2005


The Children’s Hospital Foundation says it is unlikely to reach an out-of-court settlement with a Fairfax company over the handling of charitable proceeds from a defunct car-donation program, recent court records show.

The foundation, which raises money for Children’s National Medical Center, says striking a settlement deal with Charity VehicleServices Inc. and its top executives “does not appear to be a realistic possibility,” according to Nov. 18 filings in U.S. District Court in the District.

The foundation outsourced its car-donation program to Charity Vehicle Services in 2001. But the foundation sued the company earlier this year over an accounting shortfall.

Two Charity Vehicle executives — Gregory and Ruth Babcock — and the firm Babcock Advertising Inc. are represented by attorney Scott Ives of Sterling, Va.

Citing ongoing litigation, Mr. Ives has declined to comment on the case other than to say his clients committed no wrongdoing.

In a response to the complaint, Mr. Ives has said in previous filings that his clients had no day-to-day oversight of the company’s operations and that the Babcocks first alerted the foundation about concerns over another executive’s handling of funds.

Mr. Babcock served as chief executive officer in the company.

The former chief operating officer, Richard Murray of Texas, is representing himself in the lawsuit. He also has denied any wrongdoing.

The foundation has settled its case against the company’s former marketing officer, Daniel Corrigan.

— Jim McElhatton

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