Nonprofit News

The Ohio Attorney General’s Charitable Law Section has taken a variety of recent enforcement actions aimed at ensuring charitable assets are properly used.

Ohio Association of the Deaf – The Ohio Association of the Deaf (OAD) is an Ohio charitable organization that was organized to “actively support all efforts for the advancement of the deaf.” After receiving a complaint regarding OAD, the Ohio Attorney General’s Office initiated an investigation. In July, the attorney general’s office finalized an Assurance of Discontinuance (AOD) with OAD’s former treasurer, Linda Mahmood. Mahmood served as OAD’s treasurer from 2011 to 2019. As part of the AOD, Ms. Mahmood is enjoined for five years from soliciting in Ohio for charitable purposes and serving on the board of directors of any non-profit organization in Ohio. The AOD also requires Ms. Mahmood to pay a civil fine in the amount of $5,000.

Jacob’s House Recovery Center – Jacob’s House Recovery Center is an Ohio nonprofit corporation formed in 2017 by Thomas Smith, Shawnessy Smith and Kendra Smith. The attorney general’s investigation alleged a number of issues with the organization, including its failure to properly manage accounts and the filing of false or misleading information in a document required to be filed with the attorney general. In August, the attorney general’s office entered into an AOD with the organization and Thomas Smith. As part of the AOD, the organization and Thomas Smith must pay a civil penalty in the amount of $1,000. In addition to implementing specific board governance practices and internal controls, the organization must also produce certain records to the attorney general as part of a one-year review.