eric millette was a staff sergeant when he took a job with wounded warriors as motivational speaker. after two years he quit. >> i'll be damned if you will money, and drink it and waste it instead of helping brave men and women who gave you freedom. >> reporter: more than 40 former employees told cbs news that spending by the charity was out of control. these two former employees were so fearful of retaliation, they asked us not to show their faces. >> it was extremely extravagant. dinners, and alcohol, and just total access. >> for a charitable organization serving veterans all this expense on expensive resorts and alcohol. >> what the military calls fraud, waste, and abuse. >> reporter: former employees told us excessive spending began when steven nardizzi took over as ceo in 2009. they point to the 2014 annual meeting at luxury resort in colorado springs as typical of his style. >> he rappelled down the side of a building. >> reporter: to make a grand entrance. come in on a horse. >> reporter: nardizzi defended the charity's spending. >> if your only fixation is spending the most

generosity, wounded warrior project raised more than $1 billion in donations since 2003, $300 >> eric millette was a retired army staff sergeant when he took a job with wounded warriors as a motivational speaker, but after two years he quit. >> i'll be kalamazooed if you're going to take hard working americans' money and drink it and waste it. instead of helping those brave men and women who gave you the freedom to watch the face of the earth. >> more than 40 former employees the charity was out of control. these two former employees were so fearful of retaliation, they faces. >> it was extremely extravagant, dinners and alcohol and just total access. >> reporter: for a charitable organization that's serving veterans, all this expense on expensive resorts and alcohol, it seems-- >> i mean, it's what the abuse. >> reporter: former employees told us the excessive spending began when steven nardizzi took over as c.e.o. in 2009. they point to the 2014 annual meeting at a luxury resort in colorado springs as typical of his style. a building. >> reporter: you mean to make a grand entrance? >> yes, a

eric mill ette was one of the first to blow the whistle in january. >> i'll be dammed. if you take hard-working americans money and drink it and waste it. >> millette one of former 40 employees that told cbs news that spending was out of control. many pointed to the annual employee meeting at a luxury resort in colorado springs as typical of the style. >> he repelled down the side of you mean to make a grand entrance? >> yeah, came until on a segue, he's come until on a horse. >>nardizzi has addressed it. >> if you're only focused on spending, that is feeling good but not doing good. >> fred and diane kane raised $325,000 for the charity with golf tournaments and were outaged by estimates estimates that only 50% went for services. >> are you done with wounded warrior project? >> except for my munition of trying to see change there. my new mission. >> we spoke with them last night. >> they need to change the culture which in my opinion will require significant changes to the executive team. i think they can right the ship, but it is going to take a lot of >> a u.s. marine veteran who started the wounded warrior project is open to returning and resto