The president and a director of the Network of Neighbors, a 501(c)(3) organization on Martha’s Vineyard in Massachusetts, asked their new friends Scott and Danielle Pendergraft to join the board. Not long thereafter, Scott became treasurer and Danielle, who had a background in event planning and public relations, became involved in event planning for the nonprofit. In May, 2011, the organization entered into a contract with Danielle’s Texas-based business, which the Pendergrafts controlled. Ignoring limitations in the contract, the business submitted 14 invoices totaling $51,531.47. Scott, as treasurer, approved and paid by checks. Most of the money, $43,486 was funneled through the...