Latest: Legal
A 37-year-old woman who started a Utah charity to fight human trafficking three years ago is in jail accused of bilking donors out of nearly half the $1.6 million raised during that time. Candace Lierd, founder and CEO of nonprofit organization Exitus in Lehi, Utah, remained behind bars after being denied bail following her Sept. 15 arrest. Lierd, who operated under an alias as Candace…
The Charity Commission, a United Kingdom-based government organization that oversees nonprofits, has launched a regulatory compliance case focusing on the Stay Free Foundation, an addiction relief organization. At the heart of the investigation is whether any aspect of the nonprofit facilitated alleged sexual and emotional abuse activities on the part of Russell Brand, the actor and comedian behind the Stay Free Foundation. Detailed information about…
Two recently terminated employees have filed a federal whistleblower lawsuit accusing a nonprofit sports association’s CEO of using the organization’s funds for personal benefit and to run an illegal bookmaking and sports betting business. The whistleblowers also accuse the CEO of illegal drug use, mail and wire fraud, tax fraud, and violations of the federal Racketeer Influenced and Corrupt Organizations (RICO) Act of 1970. The…
The nonprofit Institute for Entrepreneurial Leadership (IFEL), in Newark, New Jersey, has acquired the for-profit Pipeline Angels network headquartered in Houston. IFEL will maintain Pipeline Angels as a wholly owned for-profit public benefit subsidiary, according to a spokesperson. Officials declined to disclose financial terms of the transaction. Such data would be disclosed as material on the organization’s next federal Form 990. IFEL, with a mission…
Theresa Sanders, the former president and CEO of the Urban League of Long Island (ULLI) whose dismissal was upheld in court last week, is appealing the decision. Sanders had been with the Plainview, New York-based organization, which is an affiliate of the National Urban League (NUL), for more than 30 years before her tenure was challenged this past summer. The enjoinder order stems from a…
The former business manager of an addiction and mental health charity for teens and young adults in England has begun serving a four-year prison sentence for stealing approximately $200,000 from the organization. The 41-year-old woman had been on the lam for eight months until the long arm of the law caught up with her last month in Turkey, where she fled after failing to appear…
You know the term “ESG.” It refers to the three broad pillars of Environmental, Social, and Governance which have become increasingly important in assessing certain for-profit businesses, especially publicly traded ones. With ever-intensifying demands from regulators, investors, and the public for attention to ESG issues, for-profit companies are increasingly focused on ESG considerations, initiatives, and compliance. ESG-related shareholder and class-action litigation and governmental investigations and…
An organization that sprang up in the wake of a train derailment that released toxic chemicals in East Palestine, Ohio, will pay nearly $132,000 and disband, according to a Settlement Agreement released by Ohio Attorney General Dave Yost’s office. The agreement also bars Ohio Clean Water Fund (OCWF) board member Patrick Lee from forming or holding any responsibilities within a charitable in the state of…
The Wisconsin Supreme Court will begin deliberating later this year on the question of what qualifies as sufficiently “religious” for a charity to enjoy the legal protections that come with that designation. The case could have far-ranging legal implications for charities with a faith-based mission. It stems from a pair of conflicting lower-court rulings in separate cases involving two Catholic nonprofits. The first ruling granted…
The former executive director of a New Hampshire charity that helps people pay for their electricity, food, heating and rent allegedly stole more than $230,000 from the nonprofit and used much of it to pay his gambling expenses instead. Kyle Fisher, 42, now faces four federal counts of wire fraud in connection with the alleged theft following an FBI investigation, according to the U.S. Attorney’s…
As artificial intelligence (AI), such as ChatGPT, continues to evolve and become more commonplace, many trade and professional associations and nonprofits are turning to AI technology to enhance their operations and decision-making processes and benefit their members and clients However, as with any emerging technology, the use of AI raises several important legal issues that must be carefully considered and worked through. Data Privacy One…