Donation cans under investigation for possible fund-raising
fraud
By MELINDA KRICK
Progress Editor
PAULDING The state attorney generals office is asking for
the publics help in investigating fund-raising activities for
a homeless shelter and a youth center, both proposed for the former
Hotel Barnes in Paulding.
A spokesman for the attorney generals office said last week that
an investigation began this spring after the office received a complaint
about donation cans around the area seeking donations for the Hotel
of Faith Organization. The donation cans stated the money was
for a homeless shelter in Paulding County located at 110 S. Williams
St., Paulding, Ohio.
The site is the former Hotel Barnes, later the Rusty Nail, which has
been vacant for two years.
Investigators found that Aaron Powell of Defiance, who is purchasing
the building on land contract, set up cans in Paulding County and surrounding
communities, including Defiance and Continental.
The spokesman said that neither Powell nor the Hotel of Faith are registered
as a nonprofit group with the state attorney general, the secretary
of states office, or the IRS, as required by law.
In addition, about two years ago, Powell allegedly distributed flyers
and collected money for a Paulding Youth Center. A flyer
indicated plans to turn the old hotel into a Christian-based youth center
with events and activities.
Neither the youth center nor the homeless shelter have opened.
Investigators have concluded that Powell did put out the donation cans
and collected funds, but cannot prove how much money was collected.
The state attorney generals office is seeking additional information
and asks that victims come forward to help prove the amount donated.
Anyone who contributed to either the homeless shelter or youth center
is asked to contact the attorney generals office at 1-800-282-0515
and ask for the charitable law section, duty investigator.
Or, check the attorney generals Web site at www.ohioattorneygeneral.gov/Charities
and fill out a complaint form.
In the meantime, the status of the hotel building itself remains in
limbo. In May, State of Ohio, Division of Industrial Compliance conducted
inspection of the three-story brick structure and found obvious
structural issues and many other deficiencies that
could pose a threat of potential collapse.
A spokesman for the Ohio Department of Commerce reported last month
that the adjudication orders that were mailed to the owner, Contemporary
Caterers, and to Powell, who is purchasing it on land contract, could
not be delivered.
On Tuesday, public information officer Shane Cartmill said a second
attempt to mail documents will be made next week. The owners will then
have 30 days to reply and request a hearing before the Board of Building
Appeals.
We have to give them a chance to comply, Cartmill said.
Although the owners property rights must be observed, the state
wants to make sure the public safety issues are resolved.
He emphasized that this is an active and ongoing investigation
and that proper legal procedures are followed.