Minnesota Nonprofit Leader Banned From Serving Charities For Two Decades After Settlement

ST. PAUL (WJON News) -- The president of a dissolved St. Paul nonprofit will be banned from serving as an officer of a nonprofit as part of a settlement with the State of Minnesota. The Minnesota Attorney General's Office has reached a settlement with Act of Cause (AFC) President Rajesh Mehta.

As part of the agreement, Mehta will be banned from serving as an officer or director of a Minnesota nonprofit for 20-years. He will also pay $200,000 in penalties, with $100,000 stayed. AFC will remain dissolved. Act for Cause was a nonprofit corporation based out of St. Paul. Attorney General Keith Ellison filed the lawsuit against Mehta and AFC alleging self-dealing, misuse of nonprofit assets, and additional governance violations.

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Ellison alleged that Mehta improperly used AFC's assets for personal benefit and that AFC was not properly governed by a board of directors, among other allegations. AFC was founded in December of 2014 to help individuals with gaining employment, community support, and access to information about housing.

After receiving a complaint from a constituent, the Charities Division of the Minnesota Attorney General's Office investigated and filed a lawsuit against AFC and Mehta.