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Attorney General James Sues Couple
for Embezzling $1 Million in Charity Funds

Former H.O.M.E. Inc, Executive Director Shirley Goddard
and Her Husband Diverted Nearly $1 Million Over 6 Years

New York Attorney General Letitia James today continued her efforts to combat fraud in charitable organizations by filing a civil complaint against Shirley Goddard, the former executive director and Board Chair of the Humanitarian Organization for Multicultural Experiences, Inc. (H.O.M.E.) and her husband Tyrone Goddard. Between 2012 and 2018, Mrs. Goddard improperly diverted or misused nearly a million dollars in H.O.M.E.’s charitable assets for her personal gain. Mr. Goddard, the former board chair, was aware of and helped to conceal his wife’s unlawful conduct. The money that the Goddards stole hindered H.O.M.E.’s ability to fulfill its mission to provide critical services to individuals with developmental disabilities in the Syracuse area.

Today’s complaint seeks restitution of the funds that were diverted from H.O.M.E., as well as a permanent bar on any fiduciary role for Shirley or Tyrone Goddard in any New York charitable organization.

“Stealing funds that are used to help developmentally disabled individuals is cruel and goes against everything that we stand for as New Yorkers,” said Attorney General James. “Our communities have faith that our charities will help them through their struggles, and our charities must be stable, honest, and ethical in order to do so. Today’s lawsuit demonstrates my commitment to pursue wrongdoers who take advantage of charities and the vulnerable communities they serve.”

In May 2018, the New York State Office for People With Developmental Disabilities (OPWDD) referred the matter to the Office of the Attorney General (OAG) when an audit uncovered financial improprieties and suspected theft of funds from H.O.M.E. The OAG’s subsequent investigation found that over the course of 6 years, Mrs. Goddard falsified loans to clients, manipulated expense reimbursements, and took overpayments of her salary. Through unauthorized phone transfers, cash withdrawals, and ATM transactions, she embezzled hundreds of thousands of dollars. Mr. Goddard became aware of his wife’s theft by 2013, and rather than take action to stop the misconduct, he assisted in his wife’s effort to conceal the embezzlement.

To account for the financial inconsistencies, the Complaint alleges that the Goddards falsely claimed that funds missing from H.O.M.E.’s accounts were due to errors by H.O.M.E.’s bank — Bank of America — which they claimed was investigating the matter over a period of years. The couple would periodically make payments back into the H.O.M.E. accounts which bolstered the “bank error” story by making it appear that the bank was correcting the errors. The Complaint also alleges that Mrs. Goddard created fake letters from the bank that claimed to support the bank error investigation, and that she falsified bank statements and provided them to OPWDD. The Goddards further deceived the H.O.M.E. Board and the organization’s outside auditors by advising that they had visited the bank to address the problem and the bank would be repaying the missing funds.

At around November 2018, H.O.M.E. terminated Mrs. Goddard as executive director. Mr. Goddard, who was a chairman of the H.O.M.E  Board, resigned at the same time.

Today’s complaint seeks full restitution of the charitable assets that were diverted from H.O.M.E. as a result of the Goddards’ actions. The amount of restitution will be determined at trial and is currently estimated to be between $650,000 and approximately $900,000. To protect the integrity of New York charities, Attorney General James is also seeking a permanent bar prohibiting the Goddards from holding any fiduciary role in a charitable or nonprofit organization operating in New York.

A complaint is merely an accusation; the defendants have the right to contest the allegations of a complaint at a civil trial, and the attorney general has the burden of proving each of these allegations at trial by the preponderance of the evidence.  

This matter was handled by Assistant Attorney General Sharon Sash with the assistance of Associate Accountant Darren Beauchamp under the supervision of Emily Stern, Co-Chief of Charities Enforcement and James Sheehan, Chief of the Charities Bureau. The Charities Bureau is a part of the Division for Social Justice, which is led by Chief Deputy Attorney General Meghan Faux, and is overseen by First Deputy Attorney General Jennifer Levy.

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Attorney General James Delivers Over $640,000
to New York Breast Cancer Organizations

Funds Derived from Fraudulent Charities and
Fundraising Network Shut Down by AG’s Office

New York Attorney General Letitia James today delivered more than $640,000 to five nonprofit organizations that are leading the fight against breast cancer. The funds were recovered by the Office of the Attorney General (OAG) from organizations and individuals who defrauded New Yorkers into making donations that went into the pockets of telemarketers. The OAG recovered the funds from the Breast Cancer Survivors Foundation, Inc. (BCSF), a sham organization, and Garrett Morgan, a telemarketer who misled donors into contributing to a sham breast cancer organization on Long Island. The $644,054.79 in restitution was distributed to the American Cancer Society, Living Beyond Breast Cancer, West Islip Breast Cancer Coalition, Babylon Breast Cancer Coalition, and Manhasset Women’s Coalition Against Breast Cancer.

“It is unconscionable that organizations and telemarketers preyed on the public’s generosity and deprived breast cancer patients of vital support during a time of tremendous physical, mental, and emotional distress,” said Attorney General James. “Today, I am honored to return these funds to the people and organizations that need them most. My office is proud to be a partner to these five incredible organizations and help them in supporting breast cancer patients and survivors throughout their journey.”

In 2017, OAG announced an agreement with BCSF and its president and founder. The BCSF posed in phone and mail solicitations as a medical center for breast cancer patients, when in reality it was a shell organization funneling donations to an outside fundraiser, which pocketed 92 cents of every dollar donated to BCSF. The OAG’s agreement required BCSF to shut down immediately and pay more than $300,000 in restitution, the last of which was received by OAG in 2021. The OAG also obtained $40,000 from BCSF’s auditors, McEnerney, Brady & Company LLC and Edmund Brady.

In 2013, OAG won a judgment against Garrett Morgan for fraud in raising funds for the Coalition Against Breast Cancer, a sham Long Island organization. The organization raised millions of dollars with solicitations that claimed there was a “mammography fund,” when there was none, and that donations would provide free mammograms to uninsured women. Morgan did not pay the judgment and, acting on a motion by OAG, the court appointed a receiver to collect or sell Morgan’s property to satisfy the judgment. In 2021, the receiver delivered $303,747.86 to OAG.

The OAG’s Charities Bureau selected five nonprofit organizations to receive the restitution funds, including:

The American Cancer Society ($314,054.79): The American Cancer Society will use the award to support an initiative that increases breast cancer screening in high poverty areas, including screening among women who have never been screened before or who are not up to date with screening. The initiative focuses on uninsured and underinsured women by partnering with community health centers. With funds from OAG, the American Cancer Society will launch a new cohort of community health centers to participate in the mammogram initiative.

“The American Cancer Society is committed to expanding access to care for all and removing barriers that prevent cancer patients from getting the care and treatment they need,” said Dr. Karen Knudsen, CEO, American Cancer Society. “The pandemic brought about dramatic declines in breast cancer screenings. We are grateful that funds from the New York Attorney General’s Office will expand our lifesaving initiative to increase cancer screening rates and ultimately save lives.”

Living Beyond Breast Cancer ($225,000): Living Beyond Breast Cancer, a national nonprofit organization, will use the award to support its Living Beyond Breast Cancer Fund, which provides one-time grants to help those on limited incomes manage the financial burden of breast cancer. Grants range from $500 to $1,000 and are for living expenses. Grants are paid directly to vendors or billers. Recipients of the one-time grants must be in active treatment for breast cancer or living with metastatic breast cancer, and have a household income under 400 percent of the U.S. federal poverty line.

“We are honored to have been selected by the New York Attorney General’s Office,” said Jean Sachs, CEO, Living Beyond Breast Cancer. “Living Beyond Breast Cancer was founded over 30 years ago to offer trusted information and a community of support for all people directly impacted by breast cancer. We annually serve over 600,000 people across the country. A critical program of ours is the Living Beyond Breast Cancer Fund, a financial assistance program that pays the bills for women in treatment for basic needs such as rent, utilities, and transportation. Since 2006, we have been able to disburse over 3,150 grants for an approximate total of $2,530,000 to women and their families. Since the pandemic began, we have doubled the number of grants available to give to recipients as a way to alleviate financial hardship faced by so many across the country. The funds provided by the New York Attorney General’s Office will allow us to continue this intensive support, and help women in treatment focus on their health and not on their bills.” 

West Islip Breast Cancer Coalition on Long Island ($30,000): West Islip Breast Cancer Coalition of Long Island, Inc., will use the award to provide patients undergoing breast cancer treatment with services such as transportation, meals, childcare, house cleaning, wigs, advice, and support from former cancer patients.

“The West Islip Breast Cancer Coalition for Long Island, Inc. is extremely grateful to the Attorney General’s Office and its commitment to overseeing that funds raised to help women with breast cancer go to legitimate organizations that provide services to the many women on Long Island going through chemotherapy and radiation,” said Margaret Campise, president, West Islip Breast Cancer Coalition. “This award will ensure that many Long Island women will be taken care of through our ‘Lend A Helping Hand’ program, which offers free services like house cleaning, transportation to treatments, co-payments, wigs, prosthesis, and post-operative care. On behalf of the many women going through breast cancer, and the West Islip Breast Cancer Coalition for Long Island, I want to thank the Attorney General’s Office.”

Babylon Breast Cancer Coalition ($35,000): Babylon Breast Cancer Coalition, Inc., will use the award to provide an array of services to patients undergoing treatment for breast cancer and gynecological cancers, including transportation to medical appointments, housekeeping, meals, and childcare as needed during treatment.

“About 1 in 8 U.S. women (13 percent) will develop invasive breast cancer over the course of a lifetime and when that happens a woman’s life, and the lives of those who love her, are thrown into turmoil as she undergoes a horrific treatment ordeal,” said Nick Radesca, volunteer & vice president of finance, Babylon Breast Cancer Coalition. “Because most people’s lives have been impacted by this disease, many willingly donate to breast cancer charities. I want to thank the New York State Attorney General’s Office for bringing unscrupulous individuals to justice and redistributing defrauded donors’ funds to legitimate organizations. Babylon Breast Cancer Coalition, Inc. will use its share to provide free support services such as transportation to and from medical appointments, housecleaning, financial assistance, childcare, meal preparation, and other needed services.”

Manhasset Women’s Coalition Against Breast Cancer ($40,000): Manhasset Women’s Coalition Against Breast Cancer, Inc., will use the award to support its outreach program, which provides services to patients in the form of transportation, childcare, house cleaning, wigs, and non-financial support including advice and general emotional support of other former patients.

“The Manhasset Women’s Coalition Against Breast Cancer congratulates the Office of the New York Attorney General’s Charities Bureau for their efforts in pursuing the shutdown of the Coalition Against Breast Cancer and the Breast Cancer Survivor’s Foundation, both fraudulent organizations,” said Lynn Minutillo, member of board of directors, Manhasset Women’s Coalition Against Breast Cancer. “The MWCABC is so very grateful to be designated as a recipient of funds secured in the settlements of these cases. The women with breast cancer with whom we engage will be better served financially, emotionally, and educationally. Be assured we will strive to be conscientious stewards of the funds entrusted to us.”

The recovered funds distributed today are part of OAG’s Operation Bottomfeeder, which is an initiative of the Charities Bureau to identify fraudulent charities and their fundraisers. This is done through an analysis of annual financial reports, fundraising contracts, and other documents that nonprofit corporations file with the Charities Bureau, and has allowed OAG to take appropriate enforcement action against those engaging in fraud. In 2020, as a part of Operation Bottomfeeder, Attorney General James announced a multi-agency agreement imposing a nationwide, permanent, ban on Outreach Calling, a for-profit fundraiser, from charitable fundraising. To date, Operation Bottomfeeder has recovered approximately $1.7 million from sham charities and their fundraisers and has redistributed that money to legitimate charities.

This matter was handled by Enforcement Section Co-Chief Yael Fuchs and Assistant Attorneys General Peggy Farber, William Wang, and Sharon Sash under the supervision of Charities Bureau Chief James Sheehan and Deputy Bureau Chief Karin Kunstler-Goldman. The Charities Bureau is a part of the Division for Social Justice, which is led by Chief Deputy Attorney General Meghan Faux and overseen by First Deputy Attorney General Jennifer Levy.

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Ohio #FreedomConvoy Donors Encouraged to Contact Attorney General Yost

Ohio Attorney General Dave Yost wants to hear from Ohioans impacted by GoFundMe’s initial decision to refund or redirect donations given to demonstrators protesting COVID-19 restrictions in Canada.  

“It is deeply troubling that a professional fundraiser holding donations in trust would think they have the right to unilaterally redistribute donations,” Yost said. “If you’re an Ohioan that donated to the #FreedomConvoy through GoFundMe, I want to hear from you.”

On Friday, the crowdfunding site GoFundMe announced it would redirect donations raised for demonstrators protesting COVID-19 measures in Canada, after the organization determined that the efforts had violated the site’s terms of service due to unlawful activity. The fund had grown to around $10 million Canadian dollars or $7.8 million U.S. dollars.

“GoFundMe is bowing to public outrage by not directly distributing funds as they were intended,” Yost said. “I want to verify that GoFundMe isn’t playing God with other people’s money.”

GoFundMe has now reversed its earlier course and announced it will refund every dime of this fundraising drive automatically, without demand, thereby eliminating the possibility of “redirecting” donations with the consent of the donor.

“While that is a welcomed move, I am still interested in collecting information to make sure such things do not happen in the future,” Yost said. “Ohioans rely on their platform to do good, and their intentions and hopes should be honored.”

The Attorney General directed the agency’s Consumer Protection team to review GoFundMe’s terms of service to assess compliance with Ohio law. Consumers who donated to the cause should contact the Ohio Attorney General’s Office by filing a consumer complaint online or by calling 800-282-0515.The Ohio Attorney General’s Consumer Protection Section protects Ohioans from predatory and illegal business practices. The section enforces laws that prohibit unfair and deceptive practices including but not limited to: false advertising, shoddy workmanship, and failure to perform services or to deliver goods.

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AG Pax­ton Inves­ti­gates GoFundMe for Shut­ting Down Fundrais­er and Tak­ing $10 Mil­lion from the Cana­di­an Trucker’s Free­dom Convoy

Texas Attorney General Ken Paxton issued Civil Investigative Demands (CIDs) to GoFundMe Inc. to investigate potential violations of the Texas Deceptive Trade Practices Act (DTPA). The crowd-funding platform’s integrity has come into question after it removed a multimillion-dollar fundraising campaign for the Canadian truckers “Freedom Convoy” which is protesting vaccine mandates. 

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Court Finds The Fab Family Fund, Inc., Shanna Pinet a/k/a Dr. Fabianna Marie, and David Pinet Violated Charitable Trusts Laws and Orders an Injunction, Restitution, Attorneys’ Fees, and Civil Penalties

Attorney General John M. Formella announces that on January 4, 2022, the Rockingham County Superior Court ruled that The Fab Family Fund, Inc., Shanna Pinet, and David Pinet violated laws pertaining to charitable organizations, including deceptive fundraising, breach of fiduciary duties, and failure to comply with an administrative subpoena.

In September 2021, the Charitable Trusts Unit filed a civil complaint against The Fab Family Fund, Inc., a New Hampshire nonprofit corporation, Shanna Pinet a/k/a Dr. Fabianna Marie, the chief executive officer of The Fab Family Fund, and David Pinet, treasurer of The Fab Family Fund. The complaint alleged that the charity and the board members failed to comply with their obligations under New Hampshire law to register with the New Hampshire Attorney General. In addition, the lawsuit alleged that Shanna Pinet and David Pinet engaged in deceptive fundraising, breached their fiduciary duties to the charity, and unlawfully failed to respond to repeated requests for information and administrative subpoenas.

Specifically, the complaint alleged, among other things, that The Fab Family Fund claimed on its Facebook page and website that it was a “501(c)(3) nonprofit,” but it did not receive such recognition from the Internal Revenue Service. The complaint also alleged that the organization conducted many fundraisers, including a “zoom chat” with “Dr. Fab, the Naturopathic Doctor,” on “Demystifying Breast Cancer,” but Shanna Pinet a/k/a “Dr. Fab” was not licensed as a naturopathic doctor in New Hampshire or elsewhere in the United States. There is no evidence that any funds raised actually supported the organization’s mission to “educate, facilitate and grant Breast Cancer Thrivers and their families an all-expense paid trip for solace and healing.”

On November 10, 2021, the Court issued a notice of default against the defendants and on January 4, 2022, the Court granted the Motion for Entry of Final Judgment. The Court ordered that The Fab Family Fund be dissolved as a New Hampshire voluntary corporation. In addition, the Court ordered that Shanna Pinet and David Pinet be permanently enjoined a) from holding any position of authority with any New Hampshire charitable organization and b) from establishing or working for any nonprofit organization related to breast cancer for a period of ten years. The Court ordered that Shanna Pinet and David Pinet pay $5,794 in restitution, $15,287 to the Attorney General for attorneys’ fees and costs, and $40,000 in civil penalties.

Attorneys Thomas Donovan and Diane Quinlan of the Charitable Trusts Unit prosecuted the case.

The Charitable Trusts Unit, under the direction of the Attorney General, exercises all the common law and statutory rights, duties and powers in connection with the supervision, administration and enforcement of charitable trusts, charitable solicitations, and charitable sales promotions. Visit www.doj.nh.gov/charitable-trusts for information about the Charitable Trusts Unit and resources for charities and executives.