I am the Director of a small nonprofit animal welfare in St. Augustine, FL. A local corporate donor was raided in late March by the FBI for possible fraudulent activities on the part of the owner. To date, as far as we know, no arrests or 'cease and assists' for the business have occurred and the investigation is on-going. A Trustee was named to run the company and is now suing our organization thru US Bankruptcy Court in Middle District of Florida for the donations we received over a four year period calling them "fraudulent transfers" and "misappropriated funds". The total amount of donations our org received over that four year period is just over 38,000. The amount estimated to have been misappropriated is between one and two hundred million.
*The summons goes on to say that "The Debtor received no value in exchange for the Four Year Transfers" - (I was under the impression that a charity was not to give anything in return for donations received other than a receipt for tax purposes and proof of our 501c3 status).
* It also states that the transfers were made as a part of and in furtherance of the Debtor's operation of the Ponzi scheme...with the intent to hinder, delay and defraud his creditors...that it constitutes an interest of the Debtor in property (and) ...that 'The Defendant knew or should have known that the Four Year Transfers were improper' (How in the world would we know that when the FBI hasn't made a decision on it yet?!?)
* We are summoned and required to submit a motion or answer to this complaint against our org within 30 days. We are a shoe-string operation completely run by volunteers. The donation checks were hand delivered to our bank by an employee and investor in the company. We never saw them. How could we have known that the donations were improper? Any good advice would be much appreciated, Thank you for your Time.
*The summons goes on to say that "The Debtor received no value in exchange for the Four Year Transfers" - (I was under the impression that a charity was not to give anything in return for donations received other than a receipt for tax purposes and proof of our 501c3 status).
* It also states that the transfers were made as a part of and in furtherance of the Debtor's operation of the Ponzi scheme...with the intent to hinder, delay and defraud his creditors...that it constitutes an interest of the Debtor in property (and) ...that 'The Defendant knew or should have known that the Four Year Transfers were improper' (How in the world would we know that when the FBI hasn't made a decision on it yet?!?)
* We are summoned and required to submit a motion or answer to this complaint against our org within 30 days. We are a shoe-string operation completely run by volunteers. The donation checks were hand delivered to our bank by an employee and investor in the company. We never saw them. How could we have known that the donations were improper? Any good advice would be much appreciated, Thank you for your Time.