Wasnt going to post it but since you asked here it is. This was what led to the USTUs downfall and decertification along with the hierarchy being removed. The issue was not that the money was missing, but that it was majorly misspent.
The fact of the matter is the the year before the switch, we got a clean bill of health from both the USOC as well as our auditors. Suddenly, we became an "unstable organization" soon after Jay Warwick left, according to a letter from the USOC, which was the beginning of the campaign against USTU and its Korean born leadership.
The financial stuff was the excuse but that wasn't the reasons. The real reasons were two fold: 1) USOC had underwent a major reorganization and they wanted all of the NGBs to do the same, which was to switch the NGBs from a volunteer leadership based organization to a staff leadership based one. USTU was the test case, at least according to USOC's plan under Jim Scherr (USOC Executive Director) and Jeff Benz (USOC General Counsel). 2) Jim Scherr wanted to get rid of all of the Koreans, especially President Sang Lee.
By the way, Jeff Benz was recently brought back as one of the members of the ad hoc committee which suggested by law changes which are part of the grivences filed by several members.
The plan worked, because the organization was changed to staff led (Bob G. and now David Askinas) and most of the Korean borns have left the organization. Their miscalculation was thinking that the American borns would stay, which would keep the organization financially healthy. However, when the Korean born instructors left, they took their students with them, which resulted in an 80% decrease in membership.
But the more lasting result has been the complete neuterization of both the USOC and USAT in the world community. Since the staff takeover, USOC's input into the IOC has shivelled up, as shown by USOC never having won a host city bid for an Olympics, loss which cost tens, if not hundreds of millions of dollars for the failed attempts. The staff leadership did not have the type of long term relationships that in part make such bids possible. Baseball, America's past time, was eliminated as an Olympic sport during the USOC staff leadership's tenure. That alone should be an indication of how the IOC feels about the US and its staff leadership.
USAT also suffered the same sort of loss of international prestige and power at the WTF level. USAT and its leadership have pretty much no juice at the WTF level, and the little they have come from USTU leaders (Dr. Ken Min for example) and not anything that can be attributed to USAT. David Askinas in particular has managed to alienate the WTF with his poor behavior and antics during WTF events. There is no excuse for yelling and swearing at referees on calls or giving them the finger. Our USTU leadership would never do anything like that.
Also, the USOC under Mr. Scherr and Mr. Benz halted their agenda to get the NGBs in line when it was clear that the NGBs would not put up with such shenanegans. Triathlon threatened to surrender their USOC membership if the USOC forced them to reorganize, and other NGBs expressed the same sentiment. The net result is that only USTU was forced to change, which led to the horrific results we have today. Be careful what you ask for, because you might get it.
But the people who complained did get their wish, which was to eliminate the Korean born leadership from the equation at USAT. The resulting seven years of American born leadership, I think speaks for itself. No need to go into detail about that, which I believe has already been covered here.
Most people I know who lived through both eras, USTU and USAT, say that the USTU experience was infinitely better than the USAT experience, that they really don't care if someone mistakenly charged a USTU credit card for condoms or whatever else people complained about, because even with that, the direct effect to the membership was insignificant when compared to the effect of what USAT is doing to the few members that continue to hang on. Put another way, whatever complaints people may have had regarding USTU, multiply it by ten or twenty and that is how people feel about USAT.
The mistake of the people who wanted the Korean borns out of the organization was assuming that the USOC had USTU's best interest in mind. It is probably the same mistake that the WTF may be making when it assumes the IOC has Taekwondo's and the WTF's best interest in mind during the upcoming vote for the 25 core summer sports.