More on the David Waters Affair
From Ellen Johnson
September 1998
September 1998
In last month's newsletter I discussed a recent newspaper article by John MacCormack (San Antonio Express-News, 16 August 1998) concerning the missing Murray-O'Hairs. My article briefly mentioned a former employee of American Atheists named David Waters. I said that he admitted, in a court of law, stealing over $50,000 from American Atheists. I think that may have raised more questions for some of you concerning his employment and exactly what and how he stole from us. Therefore this is a follow-up for those of you who are new to the organization since 1996 - or for those who may simply have forgotten.
Gleaning from an old American Atheist Newsletter, I have pieced together the following story of what occured. To the best of my knowledge this is a true and accurate account of what happened. I was on the board of directors at the time of this incident and I was one of the board members who was in San Diego with the Murray-O'Hairs at the time Waters stole the money.
In November of 1993, the Murray-O'Hair family went to San Diego, California, to respond to a harassment suit which had been filed against the American Atheist organizations. (See the December 1997 issue of the American Atheist Newsletter, Vol 36, No. 12). At the time, both Don Sanders, the vice president of American Atheists, and another board member, Arnold Via, were ill and unable to undertake their normal duties of "minding the store" while the administrative officers were gone.
On November 19, the office manager called San Diego to report that an incident had taken place at the GHQ. The security alarm system had given an alert, although no substantive breach was apparent. Nothing seemed to be amiss and it was thought to be a false alarm.
The Murray-O'Hairs then returned on Thanksgiving weekend (November 26). At that time, they discovered that the American Atheist Library's 486 tower computer was missing, together with a printer, a battery back-up system, and a keyboard. The computer had a tape backup problem which had prevented any recent backup of its database. Thinking that the computer may have been taken to have the glitch fixed, the Murray-O'Hairs immediately called the office manager, who reported that the computer had not been removed from the building for any purpose. The security control system provider was also contacted post haste and it was verified that there had been no substantive breach. Technicians inspected the system and advised that it was working correctly. Also the security control system provided an electronic readout of the entire month of November. The police were called and took a theft report (Austin Police Department, Offense #93-3300607). The conclusion of the police was that it had been an inside job.
Within days, the office manager gave a two-week notice and terminated employment effective December 17, 1993. The reason given was that the management of the GHQ had been too stressful for the month that the Murray-O'Hairs were out of the office. Worried, but pressed for time since a follow-up trial was tentatively scheduled for January in the San Diego harassment case, it was decided that another employee, David R. Waters, should be given the post of office manager during any time that the Murray-O'Hairs would need to go back to San Diego. Waters had been employed, in February 1993, as a typesetter in the printing department. Don Sanders, out of the hospital in late December, expected he would be able to oversee the GHQ during what was thought would be the absence of the Murray-O'Hairs for another month. Mr. Waters was a good worker, steady, and reliable. He learned quickly and seemed to manage office routines well. With Mr. Sanders overseeing, we thought that all would be well.
Waters was moved into his new position and began training on January 1, 1994. Then a curious thing happened. The American Atheist GHQ had, in its safe, a dozen $5,000 bearer bonds given to it by a member. As interest came due on the bonds, Jon Murray would clip the coupons from the bonds and send them for redemption. He did this with several on January 2. However, the New York bank returned the coupons within a week with information that the bonds had been called and needed to be returned for redemption. When Mr. Murray again entered the office safe, twelve $5,000 bonds were gone.
The Murray-O'Hairs were stunned. Everyone in the office was individually and closely questioned. The police were called (Austin Police Department, Offense #94-0180668). Again the security control system was notified, again it inspected the premises, again it provided an electronic print-out, and again it concluded that there had been no breach. The former office manager later came to the office to disavow any knowledge of the whereabouts of the bonds.
The police decided that this was also "an inside job," the second in six weeks! However, on this occasion, the thief had dropped one bond. This was provided to the police and a request was made that a fingerprint study be made. The police declined to attempt this, advising that such a study would "ruin the bond," although the police kept it for over a month. Actually nothing could be done. We could hardly fire everyone in the building, and the police declined to interrogate them.
The San Diego trial, postponed in January 1994, was rescheduled for the beginning of April. The Murray-O'Hairs left on March 24, 1994. Don Sanders was unable to watch the GHQ because he had to go back into the hospital, so David Waters was left on his own.
The Murray-O'Hairs returned to Austin late Friday night, April 8, 1994, having been gone sixteen days, instead of the month expected. The next day, Saturday, April 9, they went back to the office and were astounded to find that time cards had not been punched, that the postage meter had an old date on it, and that apparently the employees had not gone to work during their absence. The answering machines were full of messages. One of them was a message from Waters that he had quit because he could "no longer tolerate the mystique of the organizations." Robin's editorial assistant told her that Waters had "laid off" all the employees.
Upon inspecting the offices, the Murray-O'Hairs found that no bills had been paid; no book orders filled; no bank deposits made. Entire sheets of checks were missing from the check books. The automated bank phone system indicated that all the accounts were completely wiped out - approximately $55,000 was gone. They later found out that the money was taken through checks that Waters had made payable to himself and cashed.
The police were called. A first report was taken (Austin Police Department, Offense #94-0991028), but from thence forward the police were reluctant to make any investigation. Everything had to be undertaken by American Atheists.
The GHQ's long-distance service with MCI had been terminated by Waters - but that led to tracing some long-distance calls and finding out even more.
Police Refuse to Cooperate
Although the name David Waters was typed on every check he had cashed, and although he had endorsed the checks with the use of his signature and his driver's license, the police simply refused to pick him up, although the other employees were witnesses, as were the bank clerks. When asked to give a statement to the police, one of the other employees took a soft drink can to the police station so that the police could obtain prints of Waters - but the police declined again.
The Murray-O'Hairs immediately got in touch with the boards of directors and asked them to write to the Austin police chief, Elizabeth Watson. She ignored the letters. The Murray-O'Hairs went to the police station demanding some action. Basically, they were stalled off. It was April 18 (ten days later) before a warrant was issued. With the passage of over two weeks, Dr. O'Hair began to badger the police to pick up Waters. A police captain advised her that Waters was "busy," so an "appointment" which had been made for April 27, to talk to the police, had been delayed for another several days for Waters' convenience. He finally went to the police station on April 29 with an expensive defense attorney, they were informed, in tow. He was placed under a "personal recognizance" bond until the police "could investigate further." The police refused to disclose the amount of the bond or whether or not Waters was paying for his attorney with stolen money. Actually, the police did nothing, according to the Murray-O'Hairs. They alone traced Waters every step and reported it to the police, piece by piece.
On May 2, Waters executed an affidavit and delivered to law enforcement officials which the Murray-O'Hairs were not told about for months. It was accepted as the truth by all concerned yet it was an incredible fabrication. It stated that Jon had called Waters from San Diego, advised him that the trial was very adverse to American Atheists, and instructed Waters to steal up to $100,000 by cashing the organizations' checks, retaining $15,000 for his "services," and put $40,000 in cash in the safe for Jon.
The absurdity of that should have been apparent because the San Diego hearing had been decidedly favorable for American Atheists and the Murray-O'Hairs. It did, however, bring out the true nature of the police and judicial system of the city of Austin, the county of Travis, and the state of Texas. Hatred for Atheists is so great that this affidavit was actually delivered to the district attorney's office - an unheard of breach of legal procedure. The Murray-O'Hairs were informed that a "California group" was paying for Waters' attorney and would take the case up on appeal, if necessary, to set him free. If Waters had stolen this amount of money from any church, or had invaded the home of any minister, he would have been arrested within hours, tried and convicted within days, and would even now be serving a term in the Texas state penitentiary.
The police finally did turn the matter over to the office of the Travis County district attorney on May 3, 1994, which — it turned out — was disinclined to do anything, primarily because of the affidavit. This was almost a month after the thefts had been discovered. Again, we asked board members to write. Again the Murray-O'Hairs went to see the attorneys in the district attorney's office. Since one of the American Atheist GHQ employees, the same one who had taken the soft drink can to the police station, was extremely suspicious of Waters, Dr. O'Hair insisted that fingerprints be traced. This resulted in an argument in the district attorney's office that this was an extreme measure to take and not indicated in the case. Waters' "reputation had to be considered."
The encounters of the Murray-O'Hairs with district-attorney personnel proved to them that Jon was not involved in the farcical scheme told in Waters' affidavit.
Dr. O'Hair kept pressure on the district attorney's office, calling every few days to inquire what the attorneys there had found. Early in July (three months after the thefts), she was contacted by a supervisor and told that the district attorney's office was finally going to the Grand Jury. This was occasioned by the fact that the fingerprint trail had led that office to more information. Also, Jon was able to obtain all of the checks Waters had written, with all his endorsements thereon, and had been able to identify every bank clerk Waters had seen. Employees also had given statements to the police that Waters had laid them off so that he alone had free access to the AAGHQ; that on April 7 when a breach was reported in the security system, Waters had been found in the building late at night; that telephone records and certain forged documents were all indicia of Waters' activities.
The Grand Jury subsequently issued an indictment on July 7, 1994. The office of the Travis County district attorney simply did not want to go with the case - despite Waters' lengthy record of prior convictions. (See American Atheist Newsletter for August, 1998).
Waters posted a personal bond for $10,000 when the indictment came down on July 7, 1994, and a hearing in the 147th District Court of Travis County, in re: State v. Waters #94-3723, was set for designation of attorney and trial setting on July 21 before Judge Wilford Flowers. The Grand Jury recommended that the bond be raised to $50,000, but this was ignored by the judge and by the office of the district attorney.
On July 21, the case was set for hearing in the 147th District Court of Travis County:
called, then postponed to August 22,
called, then reset for September 9,
called, then reset for September 15,
called, then reset for October 3,
called, then reset for October 17,
called, then reset for November 7,
called, then reset for December 5,
called, then reset for January 23, 1995,
called, then reset for February 6, 1995,
called, then reset for March 13,
called, then reset for April 10,
called, then reset for April 24,
called, then reset for May 18,
called, then reset for May 22
On two of these occasions, Waters' attorney did not even bother to come into court, but the trial was set over each time anyway.
Waters appeared in open court on May 22, 1995, and pled guilty to the first count of "Theft/Habitual," and "True" to the second, third and fourth counts of what are called his "priors," (see American Atheist Newsletter, August, 1998.) He was given ten years probation with full restitution. A difficulty developed on June 26 when the Probation Department did not agree with probation for Waters because of his prior record. But the judge ruled ten years probation, with complete restitution. He also ordered drug screening, to which Waters' attorney objected. American Atheists asked for a restraining order against Waters since several of his "priors" included violence. It also asked for interest on the money thefts. The judge declined both.
Meanwhile, as a result of Waters terminating the MCI accounts of the American Atheist organizations, it was discovered that interstate communications had been involved in his thefts. Waters ordered certain banks to make transfers of money by telephone, and that matter was reported to the US Secret Service and the Texas office of the US Attorney General. The Murray-O'Hairs were still awaiting developments on that in July of 1995 and we don't know what came of it, if anything.
Now, in answer to a few of your anticipated questions. Yes, they had carefully checked the references which Waters had given to get his job. There was no hint that he might be a convicted murderer! (Currently, employers are so afraid of being sued that they will reveal nothing about an employee but dates of employment. Now, after the fact, there is indication that Waters' termination with one employer had been "involuntary.")
Educational establishments will not give information any more. It was only after his indictment that Dr. O'Hair was able to trace Waters' education to the "in penal" classroom instructions in Illinois. Although Waters attended classes (for 26 hours of credit) given by McMurray College (Jacksonville, Illinois) and (for 26 hours of credit also) given by Southeastern Illinois College (Harrisburg, Illinois), neither college had advised (when contacted prior to his employment) that instruction had been while Waters was incarcerated in the Illinois penitentiary system.
Aftermath
The American Atheist GHQ was left flat broke in April 1994 - with zero money in the bank. The Murray-O'Hairs felt that it was unfair that the other employees lost ten days employment by virtue of being "laid off" by Waters, so the first obligation was to return them to the payroll and to pay them for the time they had not worked. This was a considerable hardship.
The organization was down by one expensive, 486 computer, $70,000 in bonds, and $54,415 in cash withdrawn from the banks, all of the money from the cash register in the book store, and miscellaneous other items.
At the advice of the banks involved, every bank account had to be closed and new ones opened. This included personal checking accounts, since checks had also been taken from the Murray-O'Hair home. At the time of the Murray-O'Hairs' disappearance, Waters still had blank checks from both Jon Murray's check books and from the organizations' bank accounts. The legal authorities have never even "requested" the return of those checks.
Additionally, since Waters had had the keys to the GHQ and of the Murray-O'Hair home, all locks and all security control codes had to be changed. (As I recall, Waters was asked by the Murray-O'Hairs to house-sit their home.)
Because the judge refused to grant a restraining order against Waters, the Murray-O'Hairs decided that it was necessary to erect the seven-foot steel-link fence that is now around the GHQ - at a cost of $6,100.
It should be added here that the judge involved in the Waters matter, Judge Wilford Flowers, was the same judge who years earlier was the presiding judge when Dr. O'Hair was called to jury duty. Because of that jury-duty summons, Dr. O'Hair held a news conference and, sitting in the lobby of the AAGHQ, set fire to the jury summons. She refused to respond to it because of the requirement that every prospective or seated juror, as well as every judge, must have a god belief in Texas. Judge Flowers refused to recuse himself in the Waters matter although it was felt by the Murray-O'Hairs that he obviously had to be biased.
At the time of this writing, Waters has a hearing in court in two weeks concerning his failure to make his restitution payments. We will have a representative there in court to see that our interests are heard. We will keep you informed.
The San Antonio newspaper article that mentioned Waters does raise a lot of questions. There is no need to write to us to suggest the obvious. This is a matter for the police and we intend to see that Waters' possible connection to the disappearance is thoroughly investigated. We will keep you informed on that as well.
Thank you all for your continuous support of our work. We need your every word of encouragement and every dollar of help. The work load never ceases. We are growing and improving the organization in many positive directions.
One of those positive changes is the move of our headquarters to New Jersey before the year is out. Please be patient with us as the demands of the move take up much of our time and cause sporadic disruptions in service from the GHQ in Austin. Spike and the staff have done a great job getting the office ready for the move and so has Dick Hogan, our Texas state director. He has personally taken on the many demands and headaches in selling our building. He has used his own finances, resources, and considerable time to help. It has been quite a task, even for someone as experienced as Dick in selling and buying property. We could not have done it without him. Dick — THANK YOU!
As details finalize we will give you more information. We are very excited about this move and so should you. It will mean a much more stream-lined and efficient organization for all of us as I will finally be able to work out of the central office. The new year will be a new beginning for American Atheists when we ring out the old and ring in the new.
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