"Nonprofits are supposed to benefit the public — not defraud it": AG Ellison files 23 civil lawsuits against fraudulent nonprofits
MINNEAPOLIS -- Attorney General Keith Ellison announced Wednesday that he's filed 23 civil lawsuits against nonprofits that were created or revived to defraud the Federal Child Nutrition Program.
According to a press release from Ellison's office, the lawsuits allege that a majority of the entities were created or revived by individuals indicted under federal criminal laws for their roles in perpetrating fraud.
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In addition, an independent civil investigation by the Charities Division of the Attorney General's Office also revealed that the nonprofits were all created or revived around the start of the pandemic that registered for funds through the Federal Child Nutrition Program, did not appear to have legitimate nonprofit activities on site, showed evidence of misuse in bank records when located, were abandoned or gave false addresses, failed to comply with state and federal reporting requirements that would have allowed regulators to detect the fraud, and failed to comply with the Attorney General's investigation — all providing grounds to shut the organizations down under Minnesota's civil nonprofit corporation laws.
"Nonprofits are supposed to benefit the public — not defraud it," Attorney General Ellison said. "Most nonprofits work hard and do good work to help the people of Minnesota — but not these sham organizations. I am seeking to permanently shut down these sham nonprofits so they can't be revived to defraud the public again."
The complaints were filed in the counties of Hennepin, Ramsey, Dakota, Stearns, and Rice, however the press release from AG Ellison also says his office will be shortly filing a motion to consolidate them all in Hennepin County, where complaints were filed against 16 of the 23 nonprofit corporations.
The nonprofit defendants in the AG's lawsuits are:
- Academy for Youth Excellence
- Advanced Youth Athletic Development
- African Chamber of Commerce Education
- Bet On Better Future
- Community Enhancement Services Inc.
- Gedo Community Services
- Hobyo Health Care Foundation
- Hope Academy for Youth & Women Empowerment
- Minnesota African Chamber of Commerce
- Minnesota's Somali Community
- Multiple Community Services, MCS
- Optimum Community Services
- Serving Younger Generation
- Somali American Faribault Education
- South West Metro Youth
- Stigma-Free International
- The Free Minded Institute
- United Enrichment with Heart
- Unity Social Service
- Urban Advantage Services
- Xogmaal Media Group and Xogmaal Services
- Youth Higher Educational Achievement
- Youth Inventor's Lab