Maryland-based charity shut down after settlement alleges it misused donations, AG says
BALTIMORE -- A charity has been ordered to shut down under a settlement reached after the organization allegedly violated the Maryland Solicitation Act, Maryland Attorney General (AG) Anthony Brown announced Tuesday.
The settlement requires The Johns Hopkins House, Inc., and its founder Robert Brown to cease operations in the state, the attorney general said.
The announcement comes after a cease-and-desist order issued on October 23, 2023, demanded the organization end all charitable soliciting after it was determined that Brown violated the solicitations act multiple times.
According to the AG's office, those violations included failing to disclose financial information when requested and misleading donors about the use of their charitable donations.
Johns Hopkins House said it would save and preserve Whites Hall, the childhood home of Marylander Johns Hopkins, according to the AG's office. Part of the organization's mission was also to establish a museum on the property and fund scholarships.
Throughout 2023, Brown and his organization used solicitations to advertise and sell tickets to several fundraising events to support the charity's mission. However, according to the Attorney General, those events were never held.
In January 2024, the charity lost Whites Hall to foreclosure.
During the course of the foreclosure, the charity used solicitations that allegedly misled donors about its financial status, according to the AG's office.
An investigation revealed that contributions to the charity were used to cover fundraising expenses, and some of the contributions were used to pay for Brown's living expenses at Whites Hall, the attorney general said.
"Rather than spend their hard-earned money on themselves or their families, donors make the honorable decision to support causes and organizations that are important to them. A charitable organization that misleads its donors about the use of their funds betrays those who just want to help their fellow Marylanders," said Attorney General Brown.
The settlement permanently bans Brown from operating a charitable organization in Maryland and prohibits him from charitable soliciting.
According to the AG's office, Brown signed an apology letter to donors and community members acknowledging that he ceased all charity operations in Maryland, though he denied any wrongdoing under the agreement.