ADVISORY/Goodwill of Santa Clara County Obtains Temporary Restraining Order Against Its Former President, Andrew Liersch; Agency Seeking $16 Million in Civil Suit.

News Editors

ADVISORY...for Friday (June 13)

SAN JOSE, Calif.--(BUSINESS WIRE)--June 13, 2003

    Subject:    Goodwill of Santa Clara County has obtained a
                temporary restraining order and filed a $16-million
                civil suit in the Superior Court of Santa Clara County
                against its former President, Andrew Liersch.

    Briefing:   Hugh Barnett, President & CEO, Goodwill of Santa Clara
                County, will be available to the media for interviews.

    Time:       11 AM

    Where:      Goodwill of Santa Clara Offices at 1080 North Seventh
                Street, San Jose, CA.

    Contact:    Steven Spivak, Director Public Affairs
                408/998-5774, ext. 103, or
                Mark Murray, Wong & Murray Public Relations
                at 925/932-6050

    Background: See related release.

Goodwill Industries of Santa Clara County has obtained a temporary restraining order against its former President Andrew Liersch. In addition, the charity has filed a civil suit against Liersch to recover up to at least $16 million in assets that the charity claims Liersch and other co-conspirators embezzled from the agency. The civil charges follow a federal indictment issued against Liersch last year for money laundering and illegally transferring more than $800,000 to offshore accounts in Switzerland and Austria and eventually to the Isle of Man. On May 23, 2003, Liersch was expelled from Guatemala and subsequently arrested upon his return, based upon an outstanding arrest warrant issued by United States Magistrate Court Judge Wayne Brazil. Liersch is being held without bail while he awaits the federal criminal case to proceed to trial.

In 1999, Goodwill recovered approximately $2,000,000, partly from a theft insurance settlement, and partly in cash and assets from former employees and family members who were convicted of stealing from the agency.

The civil suit filed by Goodwill includes eleven causes of action alleging, among other things, that Liersch conspired, defrauded and deceived the charity by failing to account for cash receipts at Goodwill's retail thrift stores and diverting the same to himself and others. The claim covers a period between 1979-1997 when Liersch's participation in the alleged embezzlement occurred. Liersch was employed at Goodwill as its president and chief executive officer from 1976 to 1993. The temporary restraining order prevents Liersch from transferring assets, depleting accounts or selling any real or personal property. The charity is requesting that Liersch be prevented from transferring assets until the case can be brought to trial.

"We are seeking to recover all proceeds from the embezzled funds which rightfully belong to Goodwill of Santa Clara County," said current Goodwill Industries of Santa Clara County president Hugh Barnett.