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Is Federal Sentence Enhanced For Exec’s Theft from Charity?

Seventh Circuit remands case to trial court to decide how to interpret federal sentencing guidelines
Should the federal criminal sentencing guideline be used to add an extra eight to ten months in prison for the executive director of a charity who embezzled about $150,000 from the agency when the guideline says a two-level enhancement should be applied when the offence involves “a misrepresentation that the defendant was acting on behalf of a charitable” organization? A federal District Court in Illinois said it should be applied. The Seventh Circuit Court of Appeals has said not so fast. The executive director of a charitable organization pleaded guilty to wire fraud and was sentenced to 42 months in prison, plus a fine, restitution and a year’s supervised release. He had raised $1.1...

NRA Loses Counterclaims Against NY Attorney General

Court dismisses claims that investigation is unconstitutionally retaliatory or selective
The trial court that recently ruled that the New York Attorney General did not have grounds to force a judicial dissolution of the National Rifle Association ( See Nonprofit Issues ® , Vol. XXXII, No. 2 ) has denied counterclaims by the NRA seeking to dismiss the entire case as unconstitutionally retaliatory or selective. The Court has ruled that the AG may continue to pursue a variety of other claims against the organization and individual defendants. In reviewing a motion to dismiss, the Court said, it had to accept the factual allegations of the complaint as true and give the plaintiff the benefit of every possible favorable inference, but need not give credit to claims that are either “...

D.C. Attorney General May Sue To Dissolve Nonprofit Fiscal Sponsor

Amendment to City’s Anti-SLAPP law prevents defendants from using law for motion to dismiss
The Attorney General for the District of Columbia may proceed with a suit to dissolve a nonprofit fiscal sponsor that it claims provided more than $4 million in grants, constituting more than 99% of its total grantmaking, to a related for-profit corporation, the District’s Court of Appeals has ruled. The sponsor and the for-profit, who had partnered together to produce documentary films about various historical and political figures, had moved to dismiss the case on the basis of the Anti-Strategic Lawsuits Against Public Participation (“anti-SLAPP”) Act. A trial court had dismissed the motion but while the case was pending on appeal, the Council for the District passed “emergency”...

Court Says Racial Slurs Against Black Health Aide Did Not Create Hostile Work Environment

“An objectively reasonable caretaker would not have been detrimentally affected” by patient’s use of N-word “all the time”
A federal District Court in Pennsylvania has dismissed a hostile work environment claim brought against a behavioral health facility by a black woman aide because “an objectively reasonable caretaker would not have been detrimentally affected” by her patient’s regular race-based harassment. Tondalaya Davis took a job at Elwyn Institute in 2018 to help patients in its New Beginnings Program. The Institute provides long-term residential care for severely impaired patients in a “step-down” program transitioning patients from a state mental hospital to a return to the community. She took the job from a similar position at another organization. She was assigned to work the 11 p.m. to 7 a.m...

NY AG May Not Sue to Dissolve National Rifle Association

Trial court allows claims to proceed against individual defendants for breach of fiduciary duty
A trial court in New York has dismissed a complaint brought by New York Attorney General Letitia James seeking to dissolve the National Rifle Association for its failure to oversee top executives and prevent the loss of millions of dollars improperly spent by its leaders. But the Court has allowed the AG to continue to prosecute various claims against the individual defendants for breach of fiduciary duty and other offenses. “The Attorney General’s allegations in this case, if proven,” the Court said at the beginning of its opinion, “tell a grim story of greed, self-dealing, and lax financial oversight at the highest levels of the National Rifle Association. They describe in detail a...

Director May Sue Officer of Dissolved Corporation For Breach of Fiduciary Duty

Court reverses summary judgment granted by trial court because plaintiff was denied ability to discover evidence
An appellate court in Michigan has reversed a trial court decision granting summary judgment to the former president of a family foundation who was being sued by his brother, a former director of the foundation, for breach of fiduciary duty. The trial court had said that the plaintiff brother had failed to show evidence of a breach of duty. The Court of Appeals said he hadn’t been able to show evidence because the trial court had granted a protective order against discovery of the evidence he needed to show. The substantive issues came up in a complicated procedural case involving Timothy Lennon’s suit against his brother Edward Lennon, the former president of the David A. Lennon Foundation...

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