Tag: Attorney General Yost

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Ohio Attorney General Dave Yost and Wood County Prosecuting Attorney Paul Dobson announced today that a Wood County Jury convicted Linda Greene, former CEO of the international charity organization Impact with Hope, on charges of Tampering with Records, Prohibited Acts Involving Charities, Solicitation Fraud, and Aggravated Theft

Ohio Attorney General Dave Yost and Wood County Prosecuting Attorney Paul Dobson announced today that a Wood County Jury convicted Linda Greene, former CEO of the international charity organization Impact with Hope, on charges of Tampering with Records, Prohibited Acts Involving Charities, Solicitation Fraud, and Aggravated Theft. The Tampering and Theft charges are felonies of the third degree, subjecting Greene to potential three years in prison each.  The Solicitation Fraud charge is a second degree felony, exposing her to eight years in prison.  The Prohibited Acts charge is a misdemeanor of the first degree, carrying a six-month jail sentence.

Greene was the founder and CEO of Impact with Hope, formerly ISOH/Impact, which generated large sums of money for international relief as well as the hosting of international children requiring medical attention which they could not receive in their home countries.  The charity maintained “The Lighthouse,” a property in Perrysburg on the Maumee River where Greene lived.  Occasionally, she would host these children at her home.  Greene used charity funds for much of her living expenses, paying for clothing, food, manicures, hair styling, etc. with charity funds.  Greene maintained the property through the same funds, including a pool, pond, meditation garden, and other luxuries.  Investigators testified that Greene paid her personal credit card bills with charity funds and even reimbursed herself for purchases made with the charity’s credit card, causing the charity to pay for the items twice.  The trial testimony demonstrated that Greene took funds which had been donated for specific purposes, such as for the children and for a prospective project called “The Hope Center” and used them for her own purposes.  In total, investigators testified to over $400,000 in funds that Greene had misappropriated.

During the pendency of the case, Greene had been ordered by the court to disassociate herself from the charity.   She had repeatedly been brought back before the court for violations of that order, as she continued to run the charity and solicit funds and services on its behalf.  Ultimately, Greene was jailed by the court on a cash bond for her failure to follow the court orders.  She was also ultimately ordered to vacate The Lighthouse.

In announcing the conviction, Dobson said, “I am extremely proud of the time, effort, and dedication which has been shown by the prosecutors and investigators who have worked so diligently for so long on this case.  I would like to particularly recognize this office’s former Senior Investigator Doug Kinder, former Ohio Attorney General’s Office Senior Charitable Funds Auditor Ashley Clifton, and Ohio Attorney General’s Office Charitable Section Major Case Investigator Conika Brooks for their hours, days, and weeks of pouring through financial documents.  I would also like to recognize former Assistant Prosecutor David Romaker who started the case and Chief Assistant Prosecutor Pamela Gross and Senior Assistant Prosecutor Dexter Phillips who put the case before the jury and brought it to a successful conclusion.  Finally, I want to thank the Ohio Department of Public Safety’s Narcotics Intelligence Center for allowing their investigators to take the time necessary to finish their investigation and prepare for their testimony.

“This office has always worked hard to bring to justice those who would diminish the good work of charities everywhere by converting the funds trustingly put in their hands by good-hearted citizens to their own gain.  To use the money of hard-working people to live in the lap of luxury for free and to take even more is indefensible.”

In addition to Prosecutor Dobson, Attorney General Dave Yost commented “This case is the perfect example of why oversight for the charitable sector is imperative, as a passive board and poor internal controls can be a disaster for a charity,” Ohio Attorney General Dave Yost said. “We’re proud to partner with the Wood County Prosecutor’s Office and the Ohio Department of Public Safety to bring justice and stop this woman from lining her own pockets.”

Sentencing has been set for October 12 at 9:00 am before Wood County Common Pleas Judge Joel Kuhlman.  In the meantime, Greene remains free on bond.  The orders for her to have no contact with the charity remain in force.

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AG Yost Makes East Palestine Food Bank Whole After Settlement With Founder of Phony Charity

After finding previously unreported funds, Ohio Attorney General Dave Yost today announced settlements with one of the phony charity’s founders and its fundraiser that will direct all of the money raised on behalf of Second Harvest Food Bank of the Mahoning Valley to the organization, as intended.

“I have said from the beginning that we will continue to fight for the people of East Palestine, which is exactly what we did here,” Yost said. “Our Charitable Law Section was able to recover and return every cent intended to aid the community.

“These scammers preyed on generous donors to try to line their own pockets, but ultimately were stopped and shut down.”

Yost’s office began investigating the Ohio Clean Water Fund (OCWF), founder Michael Peppel and the organization’s fundraiser after a complaint from Second Harvest officials, who said they had never given OCWF permission to raise money in the food bank’s name.

The investigation found that the phony charity had been soliciting monetary donations for bottled water for East Palestine residents via text messages following the Feb. 3 train derailment and that it had collected more than $141,000 from donors nationwide.

Only after the food bank complained did Peppel agree to pay $10,000 to the food bank, a fraction of what had been collected.

Attorney General Yost sued OCWF in Columbiana County Common Pleas Court and on June 1 announced a settlement with the “charity” and one of its board members, Patrick Lee. That settlement required OCWF to dissolve and to pay $116,904.88 in restitution to the food bank and a $15,000 civil penalty.

Since that settlement, a court-mandated review of OCWF’s bank records, invoices, payment records and other financial documents showed that the phony charity and its fundraiser had actually raised nearly $149,000 – and that OCWF used WAMA Strategies as its main fundraiser.

Under today’s settlement with Peppel and WAMA:

  • Peppel must pay a $25,000 civil penalty and is permanently banned from incorporating, operating or soliciting for any charity in Ohio.
  • WAMA and its owners, Isaiah Wartman and Luke Mahoney, must pay $22,077.48 in restitution to Second Harvest, allowing the attorney general to distribute to the food bank 100% of the donations raised in its name.
  • WAMA and its owners must also pay $3,000 in investigative costs and fees to the Ohio Attorney General’s Office.
  • WAMA is prohibited for four years from soliciting for a charity in Ohio, and Mahoney is prohibited for four years from incorporating, operating or soliciting for a charity in Ohio.

“This settlement means the cost incurred by the state to investigate and prosecute does not come out of the food bank’s pockets,” Yost said. “That’s precisely the outcome we were looking for.”

“Our thanks to Attorney General Yost for the quick response in fighting for the community of East Palestine to recover contributions that were solicited improperly,” said Michael Iberis, Executive Director of Second Harvest Food Bank. “Second Harvest will be announcing soon how the funds will be used to assist residents.”

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AG Yost Shuts Down Eight ‘Knock-off’ Sham Charities

Five people involved in eight “charities” whose names were stolen from reputable organizations to lend credence to their scam have been ordered to pay a combined $190,000 in civil penalties and banned from associating with any charitable organization in the future, Attorney General Dave Yost announced today. 
 
As recommended in a complaint filed by Yost, a Franklin County Common Pleas judge has also ordered that the articles of incorporation be canceled for the following groups, none of which was affiliated with the established charities of similar names:

  • American Cancer Society of Cincinnati Inc.
  • American Cancer Society of Cleveland Inc.
  • American Cancer Society of Ohio Inc.
  • American Cancer Foundation of Cincinnati Inc.
  • American Cancer Foundation of Cleveland Inc.
  • American Cancer Foundation of Ohio Inc.
  • American Cancer Foundation of Columbus Inc.
  • United Way of Ohio Inc.

“These scammers were pretending to be big-time charities to swindle money from Ohioans,” Yost said. “But playtime is over, and the jig is up on your sham operation.”
 
In overseeing the charitable sector, the Ohio Attorney General’s Office works to protect charities and their beneficiaries and to ensure that donations are appropriately used for the missions of the organizations.
 
The five individuals named in the lawsuit are:

  • Ian R. Hosang
  • Jomar Holmes
  • Rhett McIntosh
  • Judith A. Culzac
  • Claudia Stephen

Legal action has also been taken against Hosang in Michigan, Washington, New York and other states where he set up dozens of similar fake charities.

The Franklin County judgment bans all five defendants from incorporating, organizing or serving in any fiduciary capacity for a charitable organization. 

“I’m extremely proud of the ongoing work our team does to protect Ohioans’ wallets,” Yost said.  

Before donating to a charity, Attorney General Yost encourages Ohioans to use the online tools provided by the Charitable Law Section of his office, including:

  • Checking whether a charity is in compliance with Ohio’s registration requirements.
  • Reviewing a charity’s annual reports to see how it spends your donations.
  • Seeing whether the charity employs professional fundraisers and finding out what percentage of donations actually goes to charity.
  • Reviewing tips for safe giving.

Also, complaints about charitable organizations – including misuse of charitable funds, fraudulent fundraising activities, violations of professional solicitation standards, bingo and charitable gaming issues, nonprofit theft and embezzlement, and breaches of fiduciary duty by nonprofit leaders – can be filed on the Ohio Attorney General’s website.

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Fraud Free in 2023: AG Yost Launches ‘Charitable University’ to Help Protect Ohio Nonprofits

Ohio Attorney General Dave Yost today announced the launch of a new training and accountability resource for Ohio nonprofits called Charitable University or CharitableU.

This online learning platform is designed to educate members of charity boards about both their legal obligations, as well as best practices for running their organizations.

“Every time an Ohioan gives money to charity, he or she is performing act of faith,” AG Yost said. “We want to make sure that board members and charity leaders are faithful stewards of the money they receive.”

The Ohio Attorney General’s Office oversees more than 60,000 active nonprofit organizations annually, with combined assets of more than $300 billion. The AGO’s Charitable Law section is charged with ensuring public trust in the charitable sector through transparency and accountability; enforcing standards; and holding bad actors accountable.

Users registering in the CharitableU system will find a series of short webinars and resources that are critical for effective leadership. Trainings on the platform cover the following “pillars”: board governance, financial operations and internal controls, filings and recordkeeping, and fundraising. Additional webinars will be added to each CharitableU curriculum pillar throughout the year.

To encourage organizations to be fraud free in 2023, completion of CharitableU will now be required for nonprofits who wish to apply for grant funds available from the Attorney General’s Office.

For transparency, organizations who complete CharitableU will be listed on the CharitableU website. Users will receive a certificate for completing the training, which will expire after three years as laws and best practices continually evolve.

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AG Yost Investigation of ‘Dogs 4 Warriors’ Leads to Settlement, Dissolution

Ohio Attorney General Dave Yost has reached a settlement with the operators of the nonprofit Dogs 4 Warriors after an investigation by his Charitable Law Section into allegations of abuse of funds and deceptive fundraising practices.

As part of the agreement, the charity’s operators, Sheila Slezak and Andrew Slezak, must pay $50,000 in damages and penalties. The couple, of Bowerston, must also permanently shutter the charity and remove its website and social media presence.

“Like a pile of dog waste on your nicely mown lawn, this charity belongs in a poop bag at the bottom of a trash can,” Yost said. “Thanks to complaints from the public we were able to shut it down.”

Dogs 4 Warriors was a registered nonprofit that trained services dogs for veterans, specializing in those with post-traumatic stress disorder or traumatic brain injuries. Its nonprofit status was revoked by the Internal Revenue Service in 2019.

Several complaints from the public led to an investigation that revealed 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.

One complaint alleged that Mrs. Slezak’s daughter was living in a cabin, paid for by charitable donations for the benefit of veterans in the final stages of their training. Another complaint claimed that the Slezaks had misused charitable funds and that the organization had continued advertising itself as a 501(c)(3) after its tax exempt status was revoked.

In an effort to provide additional resources to charities, AG Yost has created a one-stop website for charities in Ohio to help them navigate good governance and establish proper protocols to prevent problems.