Mark Everson, the former Internal Revenue Service commissioner, has been ousted by the American Red Cross board as its president and CEO after the organization learned of a relationship with one of his employees.

The board appointed general counsel Mary S. Elcano in his place as interim president and CEO. The Red Cross said the board acted quickly "after learning that Mr. Everson engaged in a personal relationship with a subordinate employee. It concluded that the situation reflected poor judgment on Mr. Everson's part and diminished his ability to lead the organization in the future."

He reportedly had a relationship with an unidentified female subordinate who remains employed at the organization. Everson is married and has two children. "I am resigning my position for personal and family reasons, and deeply regret it is impossible for me to continue in a job so recently undertaken," he said in a statement.

Everson joined the American Red Cross on May 29 after resigning as commissioner of the IRS. In July, Acting Commissioner Kevin Brown also announced he was leaving the IRS for a job as chief operating officer of the American Red Cross (see Acting IRS Commissioner Out for Blood).

His replacement, Acting Commissioner Linda Stiff, will also be leaving soon. President Bush is nominating Douglas Shulman, vice chairman of the Financial Industry Regulatory Authority, as her replacement (see Bush to Nominate FINRA Vice Chair as IRS Commissioner).

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