The Ohio Attorney General’s Office took several enforcement actions involving the activities of charitable organizations.
Rockets Youth Baseball Association: An investigation of the Rockets Youth Baseball Association in Lancaster revealed that the league’s leaders, who included Stephanie and Casey Shepherd, failed to file with the attorney general’s office and violated several statutory and fiduciary duties. The Shepherds signed an assurance of discontinuance that required the dissolution of the organization and payment of a civil penalty of $1,500. Additionally, they are prohibited from forming new nonprofit organizations and participating in charitable solicitations.
Julie Adams House: Julie Adams House is a recovery/sober living facility in Cleveland that was the subject of complaints filed in the attorney general’s office. Following an investigation, the organization and its former executive director agreed to sign an assurance of discontinuance that required numerous changes in how the board managed the financial matters within the charity, as well as receive training on the legal obligations of board members.
Our Vets Now: In April 2013, William Hastings signed an assurance of discontinuance with the Ohio Attorney General’s Office when the office alleged that he had misused charitable funds and violated solicitation statutes. Hastings agreed not to form a charitable organization or solicit in Ohio again. In October 2019, Hastings registered a charitable organization called Our Vets Now, Inc. with the Attorney General’s office. The office sued him alleging he had violated the terms of the previous agreement. The Franklin County Common Pleas Court granted a default judgment in the case when Hastings failed to properly respond. The court ordered him to pay $20,000.
Waynesville Church of Christ: Robert Jones is the sole operating member of The Waynesville First Church of Christ. Since April 2014, the church has not been in operation, but remains incorporated and with assets. Claudia Jones, Robert’s wife, handled some of the assets. The office believes that they likely breached their fiduciary duties to manage a charitable trust and to properly manage funds they solicited for the church. The Joneses entered into an Assurance of Discontinuance and agreed to pay a $2,000 civil penalty and to pay $5,000 in restitution back to the church. They also agreed to make various corrections to the church’s governance practices.
Encounter Bible Institute & Chapel: The attorney general’s office received a complaint alleging that after Encounter Bible Institute & Chapel, Inc. was closed, Lawrence L. Moore and Irene Pierce misused the organization’s remaining funds for their personal benefit. The attorney general entered into an assurance of discontinuance with Moore and Pierce, who agreed to pay a total of $7,500 in restitution and civil penalties. They also agreed not to be involved in charitable organizations in Ohio for a period of 5 years.
Healing Heroes Network, Inc.: In December last year, Ohio, along with nine other states, entered into a settlement agreement with two Florida organizations, Healing Heroes Network, Inc., Hero Giveaways, LLC, and three individuals, Stacey, Neal, and Allan Spiegel, to resolve allegations of deceptive and misleading charitable solicitations and suspected misuse of charitable contributions intended to provide medical care and other benefits to veterans injured in Iraq and Afghanistan after 9/11. The settlement requires the settling parties to pay $95,000 which will be distributed to one or more charitable organizations that provide services to those who are actively serving or have served in the US military. The settlement also permanently restricts the two organizations from engaging in or benefitting from charitable solicitations and prohibits the Spiegels from any involvement with charitable solicitations or management of charitable assets for a period of five years.
New Beginnings Club of Youngstown: The Charitable Law Section entered into an Assurance of Discontinuance in April with New Beginnings Club of Youngstown, Inc., and its founder, Vincent Strines. An investigation by the section revealed that Mr. Strines breached his fiduciary duties, the charity filed false or misleading information with the Section, and both otherwise failed to comply with Ohio Revised Code Chapter 1716. Under the terms of the agreement, Mr. Strines agreed to dissolve the charity and to distribute any assets to other charities. Additionally, Strines will not create additional nonprofits or serve as an officer or trustee with other charities.
Circleville Girls Softball League: Joshua Peters was the ex-treasurer of Circleville Girls Softball League in Pickaway County. He was charged with grand theft for misappropriation of the organization’s funds and he pled guilty. He was ordered to pay restitution in the amount $10,723. Our office filed suit for those same actions, alleging breach of fiduciary duty under ORC 1716.17 and conversion, and Peters failed to respond. The court issued a judgment for a $1,500 civil penalty and an injunction from participation in charitable organizations.
New Heights Gymnastics Booster Club off N.W. Ohio: New Heights Gymnastics Booster Club of N.W. Ohio is a non-profit booster club that operates in Wauseon. The Ohio Attorney General’s Charitable Law Section received complaints alleging the booster club was operated by Amy Nyman, owner of a for-profit gym. The complainants further alleged significant under-reporting of funds obtained through the booster club’s fundraising events and potential misuse of charitable funds. The attorney general entered into an assurance of discontinuance with the booster club and board members Jill Kovnesky, Kristi Eddy, and Mary Kern in May. Among other terms, the assurance of discontinuance requires New Heights Gymnastics Booster Club of N.W. Ohio to pay a $7,500 civil penalty. Jill Kovnesky, Kristi Eddy, and Mary Kern also agreed to dissolve the booster club, and each agreed that she will not hold any position as an officer or trustee of any athletic booster organization or charitable organization involved with youth cheerleading, dance, or gymnastics for a period of five years. The assurance of discontinuance does not constitute an admission of any wrongdoing by Ms. Kovnesky, Ms. Eddy, or Ms. Kern, and they agreed to cooperate with the attorney general regarding any ongoing charitable investigation into the matter or any litigation arising from the investigation.
Dogs 4 Warriors, Inc.: Dogs 4 Warriors, Inc. was a Bowerston charity operated by Sheila and Andrew Slezak that trained and donated service dogs to veterans suffering from post-traumatic stress disorder and traumatic brain injuries. An investigation by the Ohio Attorney General’s Charitable Law section revealed that Mr. and Mrs. Slezak breached their fiduciary duties while operating the charity and that they and the charity otherwise failed to comply with Ohio Revised Code Chapter 1716. The assurance of discontinuance between the Slezaks, Dogs 4 Warriors, Inc., and the attorney general filed in May provides for injunctive relief and $50,000 in total civil penalties and restitution.
Adoption is Love Undefined: Adoption is Love Undefined – a Spencerville charity – agreed to dissolve under an agreement with the Ohio Attorney General’s Charitable Law Section in May. According to its website, the charity’s purpose was to issue grants to families in the process of adopting children. An investigation by the section indicated that the organization and its founders, Gina and Charles Fox, failed to comply with a number of provisions of Ohio Revised Code Chapter 1716. In addition to dissolving the organization, Mr. and Mrs. Fox agreed to injunctive relief and a $2,000 civil penalty.