Ohio Attorney General Shuts Down Bingo Game

Trustees Accused of Stealing Bingo Proceeds

February 11, 2008 -- COLUMBUS - Ohio Attorney General Marc Dann filed a lawsuit today alleging the trustees of the Central Ohio Association for Children’s Higher Education (COACHE) absconded with hundreds of thousands of dollars in bingo proceeds. The lawsuit, filed in Clark County Court of Common Pleas, seeks to recover the charitable funds embezzled by the trustees of the Springfield, Ohio non-profit corporation.

“Not only did the leaders of this organization violate the law, they hurt their community by failing to meet their charitable goals. As a result, hundreds of thousands of dollars that should have been used to help kids have been wasted,” said Attorney General Dann. “This should send a clear message that I will not allow charities to cheat the people of this state.”

According to information contained in the complaint, COACHE was originally established in 1994 to “target the young people who are at risk to fall through the cracks of the normal system for higher education.” The suit alleges that COACHE operated a lucrative bingo game but made only nominal charitable contributions to the community.

Under Ohio law, proceeds from charitable gaming must be directed toward specific charitable purposes. According to the lawsuit, in one recent year, COACHE provided only $6,000 in charitable support despite generating more than $3 million in bingo revenues. More than $844,000 is unaccounted for and believed to have been diverted to personal use by the organization’s leaders. Last week, the COACHE Board of Trustees agreed to surrender its bingo license to the Ohio Attorney General.

The suit alleges that the trustees under-reported bingo revenue, over-reported expenses, and converted bingo proceeds for their own salaries, cell phones and credit cards. Additionally, the suit alleges that the organization falsified filings with the Ohio Attorney General’s office and the Internal Revenue Service.

“The trustees have violated their fiduciary obligations and should be required to return all the funds that otherwise would have been used to support the charitable purpose,” said Attorney General Dann. “We’re asking the court to require the defendants to return the inappropriate funds they received and pay restitution, interest, compensatory and punitive damages and civil penalties.”

Source: Ohio Attorney General