Lawyer Normal Schwalb Sues Nonprofit’s Former Treasurer for Illegally Using Business Cash for Personal Enrichment

WASHINGTON, DC – Lawyer Typical Brian L. Schwalb right now filed a lawsuit towards Robynn Chandler-Mitchell, the former Treasurer and board member of the nonprofit Mom and dad Organized for the Energy of Powell University (POPPS), the mother or father-teacher group developed to support the lecturers, pupils, and personnel of Powell Elementary College, a District public college in Ward 4.  The lawsuit alleges that Chandler-Mitchell abused her management part with the corporation by investing POPPS’ funds that had been raised by the Powell group on personalized expenditures these as car or truck payments and groceries, and at shoe outlets, restaurants, and nail salons, in violation of the District’s Nonprofit Corporation Act (NCA).

“Any nonprofit working in the District of Columbia should adhere to DC regulation and guarantee that its funds are utilised for specified nonprofit purposes—in this situation to assist the Powell Elementary community—not for personalized, personal acquire,” said Lawyer Normal Schwalb. “Ms. Chandler-Mitchell exploited her trustworthy position as Treasurer of POPPS, misappropriating income meant for school materials, a group backyard garden, and other school initiatives. She admitted—under oath—to having these cash, which she has yet to repay, so we’re submitting go well with to make certain she returns the dollars.  The Office of Legal professional Standard will carry on to enforce the laws governing nonprofit and charitable businesses, guaranteeing that charitable funds are not improperly applied or diverted.”

“The Powell Padres Dad or mum-Teacher Association appreciates the Office of the Lawyer General’s attempts to recuperate funds on behalf of the Powell Elementary University community and its volunteer-operate PTA,” said the POPPS Board of Administrators. “The Powell Padres Board of Directors will keep on to cooperate all over this course of action.”

An investigation by the Business of the Lawyer Standard (OAG) uncovered that, among Oct 2021, soon just after currently being elected Treasurer, and September 2022, when she unilaterally closed the POPPS bank account, Chandler-Mitchell transferred POPPS funds to herself, used the organization’s debit card for individual expenses, and withdrew money from the POPPS bank account, paying a full of $18,747.11 intended for Powell Elementary Faculty. For the duration of that time, Chandler-Mitchell frequently informed the POPPS Board that its finances have been seem, even when her personalized investing brought about the lender account to carry a detrimental equilibrium for numerous months.

With this lawsuit, OAG is in search of to:

• Ensure Chandler-Mitchell repays POPPS the misappropriated resources in whole.
• Permanently ban Chandler-Mitchell from ever serving as a director or officer of a District nonprofit.

The complete grievance is available in this article.

This scenario is remaining taken care of by Assistant Lawyers Common Leonor Miranda, Cara Spencer, Anna Rosenfeld, and Antitrust & Nonprofit Enforcement Segment Main Adam Gitlin.

About the District’s Nonprofit Corporation Act

Nonprofit businesses are set up to benefit the public—their funds are a form of community belief. The NCA broadly empowers the Lawyer Typical to law enforcement nonprofits running in the District of Columbia to ensure that nonprofits function and commit their resources steady with the public goal for which the nonprofits had been produced. A nonprofit abandons its general public intent when it enables any portion of its cash to be spent in means that are created to advantage private persons or businesses. This perfectly-recognized nonprofit principle—the prohibition on non-public inurement—is presented in the NCA and is a elementary tenet of the popular regulation.

OAG’s Nonprofit Enforcement Function

Due to the fact 2015, OAG has steadily expanded its ability to enforce District rules governing nonprofits. Most not too long ago, OAG resolved actions against a lodge of the Fraternal Get of Police for working an illegal off-premises liquor gross sales software, the Coast Guard Auxiliary Affiliation for incorrect payments to its Board President, and Delta Phi Epsilon, Inc. for applying nonprofit funds for particular obtain. OAG has also litigated or solved cases towards quite a few charter educational facilities, together with Choices Community Constitution Faculty, as very well as the president of the Park Southern Neighborhood Corporation, an inexpensive housing building, for mismanagement of nonprofit funds. OAG has also sued many corporations for misuse of charitable money, including Casa Ruby, a DC business that misused resources meant to provide LGBTQ+ youth. In addition, OAG has received a court docket order demanding District nonprofit Howard Theatre Restoration, Inc. to dissolve for failing to operate in support of the District’s historic Howard Theatre, and secured $950,000 from the Washington Hebrew Congregation’s preschool for violations of the NCA in addition to several childcare basic safety violations that place young children at risk, and intervened to solve a board dispute at an internet liberty business.  

If you suspect that a nonprofit or officer of a nonprofit performing business enterprise in the District of Columbia is violating District law, please contact OAG at (202) 727-3400.