The Ohio Attorney General’s Charitable Law Section investigates complaints about charities whose leaders fail to follow legal obligations that extend to all charitable organizations. If you are aware of fraudulent or inappropriate conduct taking place in a charity, please file a complaint with the attorney general’s office.
Marion Midget Football – The Office received complaints regarding Marion Midget Football’s operation of a youth football league and the organization’s radio station, WWGH Radio 107.1. Following an investigation, Marion Midget Football, Patsy A. Worcester, and Scott Spears entered into an Assurance of Discontinuance (AOD) in May. Worcester resigned as the organization’s Treasurer in April 2019 and is prohibited from serving as a nonprofit officer or board member, soliciting for charitable purposes, or incorporating a non-profit organization for a period of five years following her resignation. Spears agreed to pay a total of $12,500 in restitution and civil penalties. He also resigned as the organization’s President in May 2019 and is prohibited from serving as a nonprofit officer or board member, soliciting for charitable purposes, or incorporating a non-profit organization following the date of his resignation. In addition to implementing internal controls and board governance practices, the organization agreed to relinquish the WWGH Radio 107.1 license to the FCC and must cease any involvement with the radio station.
Restoration Automotive – Restoration Automotive is an Ohio charitable organization that was organized to “operate a nonprofit automotive repair service” for those “who cannot afford to have their car fixed.” The Attorney General’s Office received a complaint alleging that the funds of the organization were being inappropriately used to pay for personal expenses of members. As a result of the complaint, the Office opened an investigation into Restoration Automotive. In June, the Office finalized an AOD with Eugene Skibinski. Mr. Skibinski was an incorporator of Restoration Automotive and had access to Restoration Automotive’s financial assets, including the organization’s bank account. As part of the AOD, Mr. Skibinski agreed to be enjoined for two years from soliciting in Ohio for charitable purposes, agreed to be enjoined for two years from serving on the board of directors of any non-profit organization in Ohio, agreed to be permanently enjoined from incorporating an Ohio nonprofit organization, and agreed to be permanently enjoined from directly overseeing or managing charitable assets. The AOD does not require Mr. Skibinski to pay any restitution or civil fine.
New Hope – A tip from an employee of Hospice of Hope in Maysville, Ky. led the Ohio Attorney General’s Office and seven state attorneys general to investigate and ultimately shut down New Hope Foundation, Inc. of Nashville as a sham hospice charity. New Hope raised funds through telemarketing and direct mail and allegedly provided education regarding hospice services. It sent “local area appeals” which appeared to the donor to be a solicitation from their local hospice but was not. In 2016, the organization had gross receipts of $4,243,069, but performed little, if any, program services. Their “charitable programming” primarily consisted of the fundraiser sending out information regarding the benefits of hospice care when requested, some information on their website, and some public service announcements. In addition to paying executive compensation of almost $100,000 and minimal other administrative expenses, the remainder of the money went to pay fundraisers to solicit donations on behalf of New Hope. The organization was indebted to the fundraisers more than half a million dollars. In June, the organization and its officers and directors entered into a Settlement Agreement calling for the organization to dissolve. Farrah Young, Austin Cartwright, and Dr. Andre Lee are banned from any charity or fundraising activities in perpetuity. The multistate enforcement that includes Ohio, Kentucky, Tennessee, Arkansas, California, Minnesota, Kansas, and New York requires New Hope to pay $85,967.83 in investigative costs and requires Young to pay $75,032.17 in civil penalties to the states.
I Have A Dream Rescue Organization – The Office received a complaint from a former volunteer alleging that Misti Martin-Fuller, Director of I Have A Dream Rescue Organization, was misusing charitable funds. In August, Martin-Fuller and I Have A Dream Rescue Organization entered into an AOD. Martin-Fuller was required to be removed from all of the organization’s accounts and is prohibited from having any involvement or responsibility concerning charitable trust money. I Have A Dream Rescue Organization must require its board members to attend board governance training and maintain a three-person membership.