Donation cans under investigation for possible fund-raising fraud
By MELINDA KRICK
Progress Editor
PAULDING – The state attorney general’s office is asking for the public’s 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 general’s 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 state’s 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 general’s 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 general’s office at 1-800-282-0515 and ask for the charitable law section, duty investigator.
Or, check the attorney general’s 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 owner’s 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.