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Files lawsuit against William Shocinski, Jr. and multiple businesses he has owned for thousands of violations of Minnesota’s consumer protection laws

September 4, 2024 (SAINT PAUL) — Minnesota Attorney General Keith Ellison filed a lawsuit against Minnesota resident William Shocinski, Jr. and businesses he has owned, Meraki Metal Art LLC, VO Metal Center MN LLC, VO Metal Art LLC, and VO Metal Art MN LLC (Shocinski Metals, collectively), for failing to deliver nearly $900,000 worth of products that consumers purchased. Attorney General Ellison alleges in the lawsuit that Shocinski and his businesses violated Minnesota consumer protection laws by failing to deliver products people ordered and paid for and made false, deceptive, and misleading statements about products offered for sale through their websites.

The lawsuit, filed in Hennepin County, accuses Shocinski and his companies of taking money from consumers nationwide, but failing to deliver more than half of the orders placed. Between August 2021 and December 2023, consumers ordered 28,793 products from Shocinski Metals. Shocinski Metals failed to deliver 12,484, or 43.3%, of those products, collecting $878,769.08 for products it did not deliver. In addition, Shocinski Metals sent damaged product, misspelled customized metal décor, or products that were not what the customer ordered on numerous occasions. Shocinski reported earning over $44,000 per month from his various businesses.

Attorney General Ellison further alleges that Shocinski and his businesses refused to provide refunds to consumers as a general practice, even for products they never delivered or products that were damaged, misspelled, or incorrect. Shocinski Metals advertised a refund policy that requires consumers to return a fictitious and non-existent form that Shocinski admitted he had never even seen. Shocinski admitted under oath that, instead of providing refunds, it was his practice for Shocinski Metals simply not to contest consumers’ fraud reports to their credit card companies, which would, in turn, refund the consumers.

The Attorney General also alleges that Shocinski and his companies repeatedly advertised non-existent affiliations with youth charities. Shocinski’s websites claimed that, “All Orders Help Support Our Local Youth Charity” and those websites included the following graphic claiming that a portion of each purchase goes to support Today’s Harbor for Children:

In reality, Minnesota-based Shocinski Metals has never supported Today’s Harbor for Children, a charity located in Texas that has never done work outside of Texas. In addition, Shocinski appears to have lifted the majority of his website from that of a Texas-based competitor, leading to a number of other miscellaneous misrepresentations, including about where the goods were manufactured.

In the lawsuit, Attorney General Ellison alleges a number of other violations, including making untrue statements about delivery times before Christmas, leading consumers to believe that they would receive products in time for gifting to loved ones, when the businesses were either unwilling or incapable of providing those goods.

“It’s simple: when you order a product from a legitimate business online, you should receive that product,” Attorney General Ellison said. “If the business cannot fill that order, you should get your money back. Shocinski did not do that. Instead, he took people’s money, failed to send them anything, and ignored refund requests. That’s not business, it’s fraud. And his lying about supporting a charity for kids is just plain reprehensible. The number and sheer audacity of Shocinski’s scams and falsehoods are truly shocking, and I’m going to put a stop to them.”

In the lawsuit, Attorney General Ellison asks the court to stop Shocinski and his companies from continuing to sell products, to impose civil penalties, and to fully restitute consumers whose money was taken without receiving a product.

Attorney General Ellison encourages Minnesotans to submit complaints about online retailers failing to deliver products you have ordered by filing a complaint with the Attorney General’s Office via its online complaint form. Consumers can also call the Office at (651) 296-3353 (metro area) or (800) 657-3787 (Greater Minnesota).

August 30, 2024 (SAINT PAUL) – Minnesota Attorney General Keith Ellison today announced that he has reached a settlement with professional fundraiser Ride to The Chip, LLC (“RTTC”) and its founders and members Tyrone Creer and Alice Arenson. In an Assurance of Discontinuance, Attorney General Ellison alleges that RTTC improperly withheld a portion of the funds that it raised for its charitable partner, the Magnus Veterans Foundation (“MVF”).  The Assurance also alleges that RTTC misleadingly claimed that 100% of the funds raised would go to charity when a portion of the funds went toward their profit, and that the organization failed to give donors legally required disclosures about, among other things, its for-profit status. The Assurance further alleges that RTTC failed to register as a professional fundraiser and file reports with the Office.

The Assurance bans RTTC and its founders from all future professional fundraising activities and requires RTTC and its founders to pay back MVF the money they owe the charity. The Assurance further requires the signers to pay $75,000 if they violate any part of the Assurance in the future.

“It is unacceptable for a fundraiser hired by a charity to keep money they specifically raised for that charity,” Attorney General Ellison said. “And we further won’t allow groups to falsely claim every penny of donations will go to charity when some of the money lines their own pockets. People who fundraise for charities need to register with our Office and follow the rules intended to make sure these dollars go to help the public and that donors are properly informed.”

Creer and Arenson founded RTTC in 2022, after which it organized a motorcycle ride from the Twin Cities to the Buffalo Chip Campground in South Dakota to fundraise for MVF. In 2023, the Attorney General’s Office received a complaint regarding concerns that a donation did not go MVF, as intended. The Charities Division launched an investigation under Minnesota’s civil charitable solicitation and charitable trust laws, which require those who hold charitable assets to adhere to strict registration requirements and fiduciary duties. In Minnesota, the Attorney General through the Charities Division has civil, not criminal, enforcement authority over the state’s charitable solicitation and charitable trust laws.

The Minnesota Attorney General’s Office makes available a number of publications and pamphlets about charitable organizations, charitable trusts, professional fundraisers, and nonprofit organizations generally:

• “A Guide to Minnesota’s Charities Laws” discusses key laws including the Minnesota Nonprofit Corporation Act, the Charitable Solicitation Act, and the Supervision of Charitable Trusts and Trustees Act, among other laws that require certain organizations to register with and provide notice to the Minnesota Attorney General’s Office.
• “Guide for Board Members” covers fiduciary duties of directors of nonprofit corporations and is meant to assist board members with the important responsibilities they assume when elected to a charity’s board of directors.
• “Nonprofit Organization Resources” contains a listing of resources covering charitable solicitation, professional fundraiser, and charitable trust registration, government agency contacts, and training and technical assistance providers.

Minnesotans with concerns about governance or other issues at a nonprofit may submit a complaint on the Attorney General’s website. Minnesota consumers may also contact the Attorney General’s Office by calling (651) 296-3353 (Metro area), (800) 657-3787 (Greater Minnesota), or (800) 627-3529 (Minnesota Relay).

All In Minnesota failed to meet board governance requirements, including financial controls and board scrutiny of conflicted transactions

August 2, 2024 (SAINT PAUL) – Minnesota Attorney General Keith Ellison today announced a settlement with All In Minnesota (“AIM”), a youth soccer charity in Vadnais Heights founded by the organization’s former president, Mark Bigelbach, in 2017. In the Assurance of Discontinuance, Attorney General Ellison alleges that the charity’s board failed to adequately supervise the business and affairs of the organization, resulting in violations of Minnesota charities laws.

AIM is a Minnesota nonprofit corporation and tax-exempt charity that provided financial assistance for soccer players of the Minnesota Eclipse youth soccer team from 2017 until the summer of 2022. During this time, AIM held only one board meeting and failed to appoint a treasurer, maintain adequate books and records, or create policies and procedures to protect charitable assets as required by Minnesota law. The organization entered into several conflicted transactions with Bigelbach and entities founded by him, including his for-profit sports facility management company, all without following statutory procedures for approving such transactions. AIM also failed to register with the attorney general’s office (“AGO”) as a soliciting charity or charitable trust, a requirement for most Minnesota charities. And, in 2022, the organization ceased all charitable activities without taking steps to formally dissolve the organization.

The Assurance of Discontinuance provides the public with transparency into AIM’s governance violations and requires AIM to dissolve voluntarily within 180 days of the court’s approval of the Assurance.

“Irresponsible financial management and conflicted transactions of the kind we saw at All In Minnesota are extremely disappointing and risk eroding public trust in the important work done by nonprofits,” Attorney General Ellison said. “We expect much better of our charities in Minnesota.”

After receiving a constituent complaint about AIM, the Charities Division investigated the charity under Minnesota’s civil nonprofit corporation and charitable trust laws, which require nonprofit directors and those who hold charitable assets to adhere to strict governance standards and fiduciary duties. In Minnesota, the Attorney General through the Charities Division has civil, not criminal, enforcement authority over the state’s nonprofit corporation and charitable trust laws.

The Minnesota Attorney General’s Office makes available a number of publications and pamphlets providing information about charitable organizations, charitable trusts, professional fundraisers, and nonprofit organizations generally:

“A Guide to Minnesota’s Charities Laws” discusses key laws including the Minnesota Nonprofit Corporation Act, the Charitable Solicitation Act, and the Supervision of Charitable Trusts and Trustees Act, among other laws that require certain organizations to register with and provide notice to the Minnesota Attorney General’s Office.
“Guide for Board Members” covers fiduciary duties of directors of nonprofit corporations and is meant to assist board members with the important responsibilities they assume when elected to a charity’s board of directors.
“Nonprofit Organization Resources” contains a listing of resources covering charitable solicitation, professional fundraiser, and charitable trust registration, government agency contacts, and training and technical assistance providers.

Minnesotans with concerns about governance or other issues at a nonprofit may submit a complaint on the Attorney General’s website. Minnesota consumers may also contact the Attorney General’s Office by calling (651) 296-3353 (Metro area), (800) 657-3787 (Greater Minnesota), or (800) 627-3529 (Minnesota Relay).

REGISTER TODAY! 2024 NAAG/NASCO Charities Conference October 8-10, 2024 | Hyatt Regency Inner Harbor | Baltimore, Md Hosted by the National Association of Attorneys General and the National Association of State Charity Officials (NASCO) This conference is the sole annual event at which charity regulators and nonprofit organizations and their attorneys, accountants, fundraisers, and advisers can meet, learn about, and discuss issues of interest across the charitable sector. The conference will provide an opportunity to hear from regulators and others in the nonprofit sector on current issues, including sessions on: Matters of Current Interest from State Regulators Artificial Intelligence’s (AI) Role in the Nonprofit Sector Fraud Resilience Among Charitable Organizations Boards Facing Crisis Fiscal Sponsorships, Legal Framework, Benefits, and Pitfalls The Future of Charitable Registration Schedule October 8 | 8:00 a.m. – 5:45 p.m. | In-Person and Virtual Programing Open to all Registrants October 8 | 6:00 p.m. – 8:00 p.m. | Welcome Reception October 9 | 8:30 a.m. – 5:00 p.m. | Programing Open to Government Staff only October 10 | 8:30 a.m. – 11:00 a.m. | Programing Open to Government Staff only Registration In-Person Early Registration Discount Ends Sept. 13 Government: $650 Public: $755 Virtual Registration Non-Government Attendees: $250 Government Attendees: Complimentary If you have created your NAAG account and do not see the correct pricing listed, please make sure you have entered your organization under your profile. If this is the first time registering for an event, it may take up to 24 hours after you create your account before you are able to register. REGISTER EARLY AND SAVE! Continuing Legal Education (CLE)CLE is not available for this event. Accessibility Planning If you identify as a person with a disability and would like to request reasonable accommodations for this event, please complete the Accessibility Request Form.

April 17, 2024

Settlement Will Ensure Oversight & Transparency, Safeguard Against Improper Spending

WASHINGTON, DC – Attorney General Brian L. Schwalb today announced a resolution in the Office of the Attorney General’s (OAG) lawsuit against the National Rifle Association (NRA) and the NRA Foundation for misusing nonprofit funds and other violations of the District’s Nonprofit Corporation Act (NCA). The terms of the settlement require thorough oversight and extensive operational changes to ensure that the Foundation operates independently from the NRA and fully complies with District nonprofit laws.

“Donors are entitled to know that their charitable contributions will be used in furtherance of a nonprofit organization’s stated charitable mission. The NRA Foundation—the charitable arm of the NRA—violated this sacred public trust, allowing the NRA to use them as an unchecked piggy bank,” said Attorney General Schwalb. “Caving to pressure from the NRA, the Foundation diverted millions of dollars to the NRA in grants and risky loans that were repaid only after OAG filed its lawsuit. Tax-exempt nonprofits are a form of public trust—abusing that trust as the NRA did violates both the public interest and District law. Today’s outcome builds on our longstanding commitment to safeguarding nonprofit donors’ money and ensuring that all nonprofits operating in the District of Columbia follow the law.” 

The NRA Foundation collects tax-deductible contributions to be used for charitable, educational, and scientific purposes related to firearms, firearm safety, hunting safety, firearm history, and marksmanship, and it is authorized to provide grants and sponsorships to organizations across the country related to these specific charitable purposes. While the Foundation can provide financial support to the NRA, it can only fund NRA activities consistent with its stated charitable purposes.

OAG’s 2020 lawsuit alleged that the Foundation disregarded its duty to protect its donors’ contributions and to operate independently, instead permitting the NRA and its executives to dictate its spending. The NRA tapped the Foundation’s coffers for grants and loans when the NRA needed money due to financial problems, decreasing membership, and lavish spending by its executive leadership. A New York jury recently found such spending to be part of a pattern of corruption and mismanagement by the NRA and its leaders.

Under the terms of the settlement, the NRA Foundation must:

• Adhere to its articles of incorporation and bylaws in all decision-making processes, in and outside of formal Board meetings.
   
• Conduct annual nonprofit compliance training for every Board member or officer.
   
• Form an Audit Committee to ensure Foundation’s financial affairs are in order and work with an external auditor.
   
• Establish a new conflict-of-interest policy.
   
• Adopt new policies governing grantmaking, loans, shared services, and other activity with the NRA to ensure transparency, Foundation independence, and adherence to the Foundation’s nonprofit mission.
   
• Report any Foundation policy changes to OAG within 30 days of approval for the duration of the agreement.

The District’s nonprofit statute, as currently drafted, does not authorize the collection of penalties; rather, its focus is to bring nonprofits in violation of the law into compliance, ensuring transparency and accountability for nonprofit funds. The agreement remains in effect until December of 2026, provided that the Foundation complies with mandated changes within 180 days.

The full settlement is available here.

This case was handled by Assistant Attorneys General Cara Spencer, Leonor Miranda, William Margrabe, and Anna Rosenfeld, Senior Trial Counsel Ryan Wilson, Paralegals Amanda Bangle and Leland Held, and Antitrust & Nonprofit Enforcement Section Chief Adam Gitlin.

OAG’s Nonprofit Enforcement Work

Since 2015, OAG has steadily expanded its capacity to enforce District laws governing nonprofits. Most recently, OAG sued the former Treasurer of an elementary school’s parent-teacher organization for using nonprofit funds for personal enrichment. OAG also resolved actions against a lodge of the Fraternal Order of Police for running an illegal off-premises liquor sales program, the Coast Guard Auxiliary Association for improper payments to its Board President, and Delta Phi Epsilon, Inc. for using nonprofit funds for personal gain. OAG has also litigated or resolved cases against several charter schools, including Options Public Charter School, as well as the president of the Park Southern Neighborhood Corporation, an affordable housing building, for mismanagement of nonprofit funds. OAG has also sued several organizations for misuse of charitable funds, including Casa Ruby, a DC organization that misused funds intended to serve LGBTQ+ youth. Additionally, OAG has obtained a court order requiring District nonprofit Howard Theatre Restoration, Inc. to dissolve for failing to function in support of the District’s historic Howard Theatre, and secured $950,000 from the Washington Hebrew Congregation’s preschool for violations of the NCA in addition to several childcare safety violations that put children at risk, and intervened to resolve a board dispute at an internet freedom organization.  

If you suspect that a nonprofit or officer of a nonprofit doing business in the District of Columbia is violating District law, please contact OAG at (202) 727-3400.