Grand Jury indicts Boys and Girls Clubs of Myrtle Beach former director for embezzling more than $100,000

South Carolina Attorney General Alan Wilson announced that an Horry County Grand Jury has indicted Dione Eban Buonto, the former Executive Director of the Boys and Girls Clubs of Myrtle Beach, for allegedly embezzling more than $100,000 from the organization. She’s charged with six counts of Breach of Trust with Fraudulent Intent.

The indictments allege that Buonto used money from the Boys and Girls Clubs to pay for personal items, including hair and beauty products, home décor, moving expenses, tuition and books for her son, and personal travel including airfare, lodging, car rentals, and meals for herself, her daughter, her son, a male acquaintance and his mother. She also allegedly issued bonus checks to herself without Board approval. The alleged embezzlement occurred between December 2014 and January 2020.

She was indicted on three counts of Breach of Trust with Fraudulent Intent in excess of $10,000, a felony punishable by up to 10 years in prison and a fine at the discretion of the court. She was also indicted on three counts of Breach of Trust with Fraudulent Intent in excess of $2,000, which is a felony punishable by up to five years in prison and a fine at the discretion of the court.

The case was investigated by the State Law Enforcement Division with the help of the Myrtle Beach Police Department. It will be be prosecuted by the Attorney General’s Office.

Attorney General Wilson stresses that all defendants are presumed innocent unless and until they are convicted in a court of law.

Arkansas Attorney General Leslie Rutledge filed a lawsuit today against Kristy and Erik Schneider, misrepresented that their minor child was deathly ill in order to receive charitable donations.

Arkansas Attorney General Leslie Rutledge filed a lawsuit today against Kristy and Erik Schneider, from Saline County, who wrongfully misrepresented that their minor child was deathly ill resulting in the Schneiders receiving over $31,000 in charitable contributions and assistance from Arkansas consumers, organizations, and law enforcement agencies. The Schneiders falsified their child’s health condition to medical providers and lied to the general public in order to provoke an outpouring of well wishes, which often resulted in donations. The complaint alleges the Schneiders’ actions violated the Arkansas Deceptive Trade Practices Act (ADTPA).

“It is inconceivable that parents would endanger their innocent child’s health for their own profit and no child should ever be treated in this manner,” said Attorney General Rutledge. “The Schneiders conned so many who gave thousands of dollars in honor of their ill child. There is nothing more reprehensible than taking advantage of the goodwill and generosity of your neighbors.” 

In February 2019, Kristy started posting updates to CaringBridge.org about the health of her ill child. She claimed the child had a rare chromosomal disorder and was dependent on feeding tubes and about 15 different medications to keep the minor alive. She told her followers the child began to see a number of specialists including neurosurgeons, neurologists, geneticists, complex care physicians, and more. She wrote, “After seeing multiple specialists, trying everything possible, and consulting with doctors in multiple other states/facilities, it was determined that the recommended course of action was to come home on hospice care.”

The Schneiders decided the child’s feeding tubes would be withdrawn to cause the minor to die a “natural death.” By this time, their story had a following in the public eye from law enforcement, concerned citizens, local news reports and others. When the child returned to Arkansas Children’s for end-of-life care, the minor was accompanied by hundreds of law enforcement officers and first responders to fulfill his final wish to see as many first responders as possible before his death. This event was widely publicized and involved resources paid for by taxpayers in the form of hundreds of law enforcement officers from central Arkansas.

After the child arrived at Arkansas Children’s for end-of-life care, the minor made an unexpected recovery. Doctors removed the feeding tube and gave the child nutrition, including liquids and popsicles, for a week and a half. Doctors reported the patient appeared to look better than the minor had in months. Despite the positive development, the Schneiders forced doctors to put the child back on a feeding tube.

Even the Mayo Clinic later refused to grant Kristy’s request to return the child to hospice care. There, and at Arkansas Children’s, Kristy continued to exaggerate the child’s symptoms. Soon thereafter, doctors reported the child was a victim of Munchausen by Proxy.

As the child seemed to be battling for his life and doctors around the country struggled to understand the nature of his medical condition, the kindness of people and law enforcement across Arkansas and the world was on full display; thousands of dollars in donations and resources poured in from throughout the United States and even foreign countries. Between gifts, meals, cash contributions, and medical transportation, the Schneiders received $31,895 in donations from consumers motivated by nothing more than goodwill and kindness. In Arkansas, each violation of the Arkansas Deceptive Trade Practices Act could result in injunctions and civil penalties of up to $10,000 per violation.

For more tips to help avoid falling victim to bad actors, or to file a consumer-related claim with the Arkansas Attorney General’s Office, call (800) 482-8982, email consumer@arkansasag.gov or visit ArkansasAG.gov. 

Updated State Charity Registration Provisions Survey for 2021

After a year of great change and great need there are many in our communities who are starting new charities and need some guidance about how to get started. In response to this need NASCO has published the July 2021 State Charity Registration Provisions Survey. Please let people in your community know about this helpful resource as a starting point for their charitable endeavors. https://www.nasconet.org/wp-content/uploads/2021/07/NASCO-State-Charities-Registration-Survey-July-2021-FINAL.pdf

AG Nessel Responds to Boy Scouts Settlement Offer

Michigan Attorney General Dana Nessel released the following statement in response to the $850 million civil settlement announced Thursday between the Boy Scouts of America (BSA) and more than 60,000 individuals who sued the organization over alleged sexual abuse: 

“This historic settlement is an acknowledgement from the Boy Scouts of America of the pain inflicted on thousands of scouts across the country. While this may bring resolution for those involved in the civil litigation, our criminal work is just beginning in Michigan. We must ensure abusers never again have an opportunity to prey on others, and the best way to achieve that is through a criminal investigation. I continue to encourage people with information related to sexual abuse perpetrated in our state to contact the Department of Attorney General’s Boy Scouts of America investigation hotline.  It is our job to secure additional justice for survivors, which in turn will better protect society from criminals who hide behind their positions of authority to abuse others. It doesn’t matter if it occurred last month or years ago-you deserve to be heard and we’re here to listen.” 

Last month, Nessel released a public service announcement (PSA) focused on the new joint investigation between the Michigan Department of Attorney General and Michigan State Police, urging abuse survivors to share their stories in order to pursue criminal charges. 

The agencies first announced the investigation at the beginning of June

In January, Nessel learned 1,700 sex-abuse claims filed in BSA’s ongoing bankruptcy case were in Michigan. The Department now believes there may be as many as 3,000 victims. 

If you have information about the Boy Scouts of America that you think would help, please call the investigation hotline at 844-324-3374 between 8 a.m. and 5 p.m. Monday through Friday. Tips can be left anonymously.  

Fraudulent Organizations Posing as Charitable Nonprofits Ordered Dissolved

Michigan Attorney General Dana Nessel along with the Michigan Department of Licensing and Regulatory Affairs (LARA) Director Orlene Hawks successfully obtained an order dissolving 10 fraudulent entities for failing to comply with state nonprofit and charity laws. The entities have names similar to those of legitimate nonprofits, like the American Cancer Society, American Cancer Foundation, United Way and the American Red Cross, but appear to serve no charitable or commercial purpose. 

Last year, the Department of Attorney General identified Ian Richard Hosang, Claudia Stephen, and Lincoln Palsey as involved with the fraudulent entities American Cancer Foundation (ACF) of Detroit, ACF of Grand Rapids, ACF of Lansing and ACF of Michigan; American Cancer Society (ACS) of Detroit and ACS of Michigan; American Red Cross (ARC) of Detroit and ARC of Michigan; United Way of Detroit and United Way of Michigan. 

In January 2020, LARA’s Corporations Division referred the ACS of Michigan and ACS of Detroit to the Attorney General’s office for potential dissolution proceedings after discovering the organizations were not part of the national entity. During that review, the Department of Attorney General discovered the other involved fraudulent entities. 

The Department of Attorney General found no evidence that any donations were made to these organizations. 

Last week, Ingham County Circuit Court Judge Clinton Canady III sided with the state in an order that:   

  • holds that the defendants engaged in fraud; 
  • permanently enjoins defendants from forming a Michigan Nonprofit Corporation or from seeking a Certificate of Authority to transact business in Michigan on behalf of a foreign nonprofit entity; 
  • permanently enjoins defendants from serving as an Officer, Director, or Resident Agent for a nonprofit corporation formed or transacting business in Michigan; and 
  • dissolves the 10 fraudulent entities identified in the complaint. 

“I’m pleased by this outcome, which goes to ensuring Michiganders looking to support important causes don’t have to worry about fraudulent entities that take advantage of generous individuals,” Nessel said. “We remain committed to protecting charitable interests in this great state and I encourage people to research charities through our website to determine legitimacy before donating.” 

The Department of Attorney General offers a search engine online that allows people to search for: 

  • a registered charity, public safety organization (police or fire group), or professional fundraiser by name, EIN, or Attorney General file number; and 
  • a list of charities by purpose, geographical area, or combination of factors. 

The Department of Attorney General also offers tips for evaluating a charity

“Thanks to the swift action of LARA’s Corporations Division in identifying these fraudulent charities and the successful intervention of the Attorney General’s office, no more Michigan citizens will be vulnerable to these individuals and organizations,” Hawks said. “Consumers should research any individual or organization thoroughly before giving a charitable organization their hard-earned money and promptly report suspected fraud to the Department of Attorney General’s Office.” 

These entities were all incorporated in Michigan in 2018 by Hosang, who is identified as the resident agent and incorporator. Stephen and Palsey were identified as officers and directors for some of the entities. However, neither Hosang nor the other defendants reside in Michigan; all have New York addresses.  

The entities themselves also appeared to have fraudulent information connected to them and no legitimate charitable or commercial purpose.  None of the entities were registered with the Attorney General’s Charitable Trust Division as required by law. They also were not registered as charitable organizations with the state, and had no physical office locations, no web presence, and no phone numbers.  

Moreover, none of the board members live in Michigan.   

LARA’s Corporations Division dissolved all 10 entities on June 25. Under the Michigan Nonprofit Corporation Act, consumers may determine if a business entity is on file with LARA’s Corporations Division or contacting the Corporations Division at (517) 241-6470 or via email. They may also obtain certificates of fact or certificates of good standing online.

Judge Canady’s order can be read in its entirety online.