Ohio AG settles case against Springfield nonprofit accused of mishandling funds

Jun. 1—A case against a Springfield charitable organization that the Ohio Attorney General's office accused of mishandling funds and property has been settled.

An anonymous tip led to Ohio Attorney General Dave Yost launching an investigation against Carleton F. & Ruth T. Davidson Trust. Yost's office alleged that trustees misused funds and property associated with the trust for personal purposes.

It is unclear when the investigation was opened. However, a settlement was reached on May 12, 2021, according to Yost's office.

"The trust and the (Ohio Attorney General's office) have agreed to resolve the charitable investigation, in order to avoid the cost and expense of further investigation and potential litigation, on the terms set forth in this agreement," according to the settlement.

All of the terms laid out in two separate settlements have been reached, a spokesperson with the Ohio Attorney General's office confirmed recently.

The specific violations alleged against the trust is unclear. But, as a result of the settlement agreement signed last year, a property was ordered to be sold or donated. In addition, a board member was ordered to pay restitution and resign from his post, the trust agreed to maintain three unrelated trustees at all times and complete board of governance training.

A property owned by the trust and sometimes referred to as the Davidson Nature Park, was sold and Trustee Doug Rice agreed to pay restitution of $30,000 to be distributed by the attorney general's office. Rice also resigned from his position.

The property in question regarded three parcels of property located at or around 4465 East National Road that accounts for 120 acres of land. It was sold last November by Norma Dillon and Douglas E. Rice to DARP LLC for $1,350,000, according to the Clark County Auditor's office.

Rice, named in one the of the settlements, was also barred from serving as trustee for the trust in the future.

Although the trust and Rice entered into agreements with the Ohio Attorney General's office, that does not constitute an admission of "the facts or violations of law" alleged by the state, according to a copy of the settlement regarding Rice.

In addition to the sale of property, another settlement was eached "with an individual board member who served as signatory on accounts and agreements that appeared to personally benefit the board member's late father."

Though it did not mention Rice by name, he was the one that agreed to pay restitution in the settlement pertaining him, according to the AG's office.

The Carleton F & Ruth T Davidson Trust was created in 1987, and the nonprofit's agreement requires its trustees to "hold and administer in Trust for religious, charitable, scientific and educational purposes all of the assets which may come into the Trust..."

"On the basis of the charitable investigation, the (Ohio Attorney General's office) has a reasonable basis to believe that certain violations of Ohio law have occurred," stated a settlement between the AG's office and the trust that was signed last year.

Hannah Hundley, a public information officer for the attorney general's office, recently clarified that settlements were reached with both the trust and Rice individually.

"All other terms of both settlements have been complied with as far as we know," Hundley said in a recent email to this news organization.