Couple Pleads Guilty to Stealing $30,000+from Winton Woods School Booster Club

A married couple accused of stealing more than $30,000 from a Winton Woods booster organization have both pleaded guilty in the case, Ohio Attorney General Dave Yost announced today.

C. Michael Trubl and Nancy Trubl faced charges stemming from misuse of the accounts of the Winton Woods Performing Arts Boosters within the Winton Woods City School District.

“They acted in concert to loot club coffers for their own financial gain,” said Yost, whose office is responsible for protecting and regulating the charitable sector. “Bravo to my Charitable Law team for exposing their shameful deceit.”

An investigation by Yost’s Charitable Law Section found that between January 2017 and March 2022, while Nancy Trubl was serving as the organization’s unpaid elected treasurer, the couple withdrew excess cash from the booster’s bank account to pay personal bills and personal living expenses, and made unauthorized personal purchases with a club credit card.

C. Michael Trubl pleaded guilty Monday in Hamilton County Common Pleas Court to one count of theft and one count of unauthorized use of property, both fourth-degree felonies, and Nancy Trubl pleaded guilty to one misdemeanor count of theft.

A restitution amount has yet to be determined, and sentencing is scheduled for Jan. 4, 2024.

AG Yost Announces Settlement with Creator of Crowd-funding Campaign Who Didn’t Fulfill Promises

Ohio Attorney General Dave Yost has reached a settlement with the organizer of a Kickstarter campaign who collected $31,753 from 101 supporters but didn’t deliver the goods he promised in return for pledges. He also failed to turn over donations to the charities identified as the campaign beneficiaries until he received pressure from the Attorney General’s Office and local police.

Under the settlement, former Westerville resident Samuel Darling — who created the crowd-funding initiative “Turtle Conservation Diver” using the business name of Flamingo Collective — has agreed to provide restitution to supporters, to pay civil penalties and to not engage in additional crowd-funding campaigns in Ohio for at least five years.  

“When it comes to allocating funds for a charitable cause and it doesn’t materialize, it truly gets my blood boiling,” Yost said. “Consumers should have confidence that their investments in crowd-funding campaigns are protected by the law.”

The Kickstarter website allows individuals to create campaign pages to solicit monetary pledges from supporters. Once a campaign reaches its goal, the pledges are paid and the project creator is contractually obligated to deliver on the promises outlined in the campaign, including any specified rewards for contributions.

Darling committed to supplying wristwatches to donors, using the slogan “Buy a watch, save a turtle” and to giving a portion of the proceeds to turtle-conservation charities.

After collecting pledges in July and August of 2020, easily surpassing his fundraising goal of $18,000, Darling wrote on the campaign page that there were production challenges with the watches but assured supporters that the watches would be delivered.

After another “production delay,” Darling acknowledged in a June 21, 2021, posting on the campaign page that he couldn’t deliver the watches and promised to refund donors. He also wrote that all of the money contributed by donors had been used to buy the watches.

When refunds were slow to come, many donors filed complaints with the Federal Trade Commission and shared their dissatisfaction in the comments section of the Kickstarter campaign page.

The Attorney General’s Office initiated an investigation, discovering that Darling had deposited the donations into his personal bank account and had purchased cryptocurrency, among other things, but made no purchases toward fulfilling the campaign promises. The investigation also uncovered that Darling had no evidence that he ever attempted to produce the watches.

In November 2021, the Attorney General sued Darling, alleging violations of both the Ohio Consumer Sales Practices Act and the Ohio Charitable Organizations Act.

Under the settlement announced today by Yost, Darling, among other things, must:

  • Pay full restitution to any campaign supporters whose donations haven’t been refunded.
  • Pay a civil penalty of $2,000 for the consumer law violations and an additional $2,000 civil penalty for the charitable law violations.
  • Not conduct any “charitable sales promotions” or act as a “commercial co-venturer” in Ohio for five years and, after that period, only if he meets certain conditions.
  • Pay court costs.

Crowd-funding scams have been on the rise, leaving consumers vulnerable to deceptive campaign operators. This case underscores AG Yost’s dedication to protecting consumers and ensuring that campaign operators satisfy their obligations.

Contributors to the Turtle Conservation Diver campaign who haven’t received a refund are eligible for restitution. If you were promised goods you did not receive from this or another crowd-funding campaign, you can file a complaint by calling 1-800-282-0515 or by filing one online at OhioProtects.org.  

NATIONAL ASSOCIATION OF STATE CHARITY OFFICIALS (NASCO) ANNUAL REPORT ON STATE ENFORCEMENT ANDREGULATION

NASCO is pleased to provide fellow regulators and the public with the 2022-2023 Report on State Enforcement and Regulation. The report consists of a sample of cases in which NASCO members were involved in Deceptive Solicitation, Nonprofit Governance
and Trust and Estates actions. The report also includes outreach efforts and published guidance issued in 2022 and 2023.

2022-2023 Annual Report

Questions regarding particular cases, actions or issues should be directed to the relevant state. Contact information for each state can be found at www.nasconet.org.

Jackson County Charity Embezzlement Case Highlights Need for Nonprofit Oversight

A Wellston woman who stole charitable funds from a local booster club was sentenced Wednesday to one year of community control and will repay the more than $9,000 that she took, Ohio Attorney General Dave Yost and Jackson County Prosecutor Randy Dupree announced.

Melanie Stanley had originally faced a fourth-degree felony charge of grand theft for misusing funds from the Wellston City School District’s volleyball booster program, The Spike Club (formerly the Wellston Match Point Club). In early June, though, Judge Christopher Regan of Jackson County Common Pleas Court accepted Stanley’s guilty plea to a lesser charge of misdemeanor theft after Stanley agreed to pay back the stolen money.

“She stole from the team and abused the trust of parents,” AG Yost said. “No matter how big or small the organization, thieves looking to set themselves up with charitable funds need to know that they’re playing a losing game.”

The Attorney General’s Charitable Law Section helped the Wellston Police Department investigate the case after booster club volunteers reported discrepancies in the nonprofit’s accounts to the police.

The volunteers said Stanley was the only officer with access to the accounts, and that she had used the charitable funds to make large personal purchases and issue checks to family members.

“Just as good teamwork can lead to victory, keen oversight can assure charitable dollars serve their intended purpose,” said Jackson County Prosecutor Randy Dupree. “We’re grateful for the collaborative investigation to put the money back in the hands of the booster club where it belongs.”      

Attorney General Yost said the case highlights the need for oversight in the charitable sector, noting how a passive board of directors and poor internal controls can spell disaster for a charity.

Coinciding with the adjudication of the Jackson County case, Yost also announced today that four new web-based trainings are available under the office’s Charitable University platform (Charitable U.), which launched in January:

  • Governmental Filings and Recordkeeping
  • Board Policy Considerations
  • Avoiding Theft and Internal Controls
  • Charitable Gaming

Charitable leaders who complete trainings in each of the four Charitable U. “pillars” will have their name and organization listed on the AGO website as a way to salute their efforts. They also receive a completion certificate that can be shared with funders as a way to reinforce their organization’s commitment to sound policies of board governance.

Charitable U. trainings are required for nonprofit agencies applying for grants from the office.

The Ohio Attorney General plays a critical role in the charitable realm as the state officer charged with protecting and regulating the sector. The office’s Charitable Law Section regularly holds trainings and conducts outreach to educate Ohio’s 60,000+ nonprofits on their legal obligations.