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Lawsuit Over Bingo Funds

Lawyer Claims Charitable Bingo Proceeds Misused

One of the predominant lawyers in Ohio has filed a lawsuit against Springfield's Central Ohio Association for Children's Higher Education – an organization established in 1994 to help at-risk youth. Attorney General Marc Dann files the suit in the Clark County Common Pleas Court after alleging the nonprofit violated state law by misusing bingo proceeds. 

The lawsuit claims the organization's trustees, including eight named in the lawsuit, operated a bingo game but made small charitable contributions despite a state law that requires proceeds from such gaming to go to specific efforts. The state also hopes to collect unspecified punitive damages and seeks to remove the trustees from the board and declare its lease at a Springfield shopping center an illegal contract.
 
The complaint notes a filing indicating Association for Children's Higher Education gave about $6,000 in charitable support in 2004 when it recorded $3.24 million in bingo revenue. The organization took in between $1 million and $4 million in bingo revenue annually, according to the complaint. Last week the association agreed to surrender its bingo license to the state.
 
The lawsuit further alleges more than $844,000 is unaccounted for and believed to have been diverted for rent payment above state-allowed levels, salaries and cell phone bills. The organization and its trustees face seven counts, including falsification, illegal contract, breach of fiduciary duties and nuisance.