Attorney General Gordon J. MacDonald announces that the attached preliminary report has been issued concerning an investigation into the use of funds at Project VetCare, Inc. Project VetCare, Inc. was established as a charitable organization formed to provide assistance to veterans in the Upper Valley region.

As detailed in the preliminary report, the Charitable Trust Unit of the Attorney General's Office received a report regarding possible diversion of Project VetCare's assets and began an investigation. The investigation ultimately established diversion of large sums of money for the benefit of the charity's executive director, her family, an employee and some members of the board of directors. Funds were diverted for such items as tickets for a Florida vacation on Royal Caribbean Cruise Lines, personal household expenses such as a new heating system and oil and propane deliveries and improper loans to directors and an employee. The report details the extensive financial conflicts of interest that benefited a majority of the board of directors.

Those directors have been removed and the organization is being liquidated in receivership. The receiver has entered into agreements with individuals responsible to have some of the funds restored. However, due to the charity's deficient financial record-keeping, the full extent of the possible misuse of funds cannot be determined. Following liquidation, another charitable organization serving veterans will receive any remaining funds.

Attorney General MacDonald stated: "This charity was established to support the brave men and women who have served our country. Some leaders of this charity enriched themselves at the expense of the veterans they were entrusted to help."

"Veterans deserve our respect and support. It is a deeply disturbing breach of trust that funds raised in their name were instead diverted for a cruise vacation, household expenses and tens of thousands of dollars of improper loans to directors. The preliminary report exposes this conduct and sets forth some of the steps for those responsible to be held accountable."

About the Charitable Trusts Unit:
The Attorney General has supervisory authority over charitable organizations and funds donated for charitable purposes. That authority is exercised through the Director of Charitable Trusts. Among other duties, the Director has the authority to investigate charitable organizations. The Director may bring a court action seeking a judgment to remove directors, to require restitution on behalf of the organization and to obtain other relief.

The Charitable Trusts Unit offers a number of resources for charitable organizations and their directors. They may be found on its website: www.doj.nh.gov/charitable-trusts or by contacting the Charitable Trusts Unit via telephone
(603)-271-3591 or email charitabletrusts2@doj.nh.gov.

Preliminary Report