Keith Ellison: Settlement reached with Maplewood man in lawsuit over ‘deceptive' nonprofits
Minnesota Attorney General Keith Ellison said Friday a settlement has been reached in his lawsuit that accuses a Maplewood man of engaging in a 'deceptive pattern' through his five nonprofits and one for-profit business — all of which have government-sounding names — as a means 'to sow confusion for his own gain.'
The consent judgment, filed Friday in Ramsey County District Court, dissolves David Singleton's nonprofits named in the Jan. 30 lawsuit and bans him from incorporating or serving as an officer or director of nonprofits in the future. It also bans Singleton from advertising that his for-profit business, Midwest Arbitration and Special Conciliation Authority Inc., can provide legal services.
In addition, Singleton must pay back the $5,000 the lawsuit says he took from a New Ulm, Minn., woman as payment for legal services he could not legally provide.
A judge will need to sign off on the settlement.
Singleton, 55, is the founder and president of the nonprofits Minnesota Civilian Public Safety Commission Inc., DWI Prevention Services Inc., and Minnesota Police Reserve Officers Association, and president of League of Minnesota Human Rights Commissions, and United Criminal Justice Reform Commission.
The lawsuit maintained that none of the organizations abided by the requirements of the Minnesota Nonprofit Corporation Act, and used images, words and verbiage to 'confuse and mislead Minnesota citizens as to the organizations' affiliation with a government agency.'
Singleton also used one of his nonprofits' websites to direct Minnesotans to his for-profit 'legal consulting' business, despite not having a license to practice law in Minnesota or any other state, according to the lawsuit, which alleges violations of the Consumer Fraud Act and Deceptive Trade Practices Act.
'It is deeply disappointing when nonprofits are used to deceive, as this risks undermining public trust in charitable organizations generally,' Ellison said in a Friday statement. 'Fear of trickery should never stand between Minnesotans and contributing to a cause they believe in.'
Singleton will be liable for an additional $100,000 if he violates any condition of the agreement.
He did not respond to a request for comment on the settlement Friday, and an attorney is not listed in the court file.
The attorney general's office said its charities division began investigating Singleton, his organizations and business after receiving complaints from government agencies, including the Minnesota Department of Human Rights.
The agency said that Singleton's similar-sounding League of Minnesota Human Rights Commissions name and government images on its website confused people into contacting the League for help when they meant to contact the state agency.
The lawsuit said the investigation found violations of the Minnesota Nonprofit Corporation Act for 'failure to perform any activities that meet the organizations' nonprofit purpose, lack of board of directors, no annual board meetings, failure to maintain financial records, and breaches of an officer's fiduciary duties.'
In March 2022, a Minnesota Civilian Public Safety Commission 'commissioner' opened a Capital One credit card for the nonprofit and added Singleton as an authorized user.
Singleton made over 60 purchases on the card, most of which did not appear to have a nonprofit purpose, including purchases at liquor stores, drug stores, restaurants and gas stations, the lawsuit alleges. After payments on the account stopped for eight months, the account was suspended and Capital One referred the account to its recoveries department with a balance of $1,480.77.
The lawsuit also alleges deceptive solicitation of donations by using names, verbiage and images to create confusion of a government affiliation.
Until the attorney general's office began its investigation, Singleton's Civilian Public Safety Commission used the website mncivilianpublicsafety.org to advertise itself, displaying images commonly associated with government agencies, including a picture of the Minnesota State Capitol and Minnesota state seal.
Midwest Arbitration's Facebook page, meanwhile, showed Singleton wearing what appeared to be a judge's robe.
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