Charity misuses donations and faces shutdown in Maryland

In Maryland, a charity known as The Johns Hopkins House, Inc. has been ordered to cease its operations following a settlement reached by the state's Attorney General, Anthony Brown. This action follows a cease-and-desist order issued in October 2023, which uncovered numerous violations of the Maryland Solicitation Act by the charity's founder, Robert Brown. Investigations revealed that Brown failed to disclose financial information, misled donors regarding the use of donations, and conducted fundraising events that didn't materialize. Despite the charity's stated intentions of preserving historic Whites Hall and funding scholarships, financial mismanagement led to the forfeiture of the property in January 2024 due to foreclosure. Ultimately, the Attorney General's office determined that funds raised were not used for their stated purposes, but rather to cover personal expenses for Brown and the costs of fundraising events that were never executed. This situation not only led to the charity's operational shutdown but also permanently bars Brown from managing or soliciting for any charitable organizations in Maryland. The AG's announcement underscores the ethical responsibilities of charitable organizations in their dealings with donors, emphasizing that misleading practices undermine trust and take advantage of individuals who aim to make positive contributions to their communities. Brown has expressed acknowledgment of the charity's shutdown in an apology letter to donors, while he simultaneously denied any wrongdoing under the agreement, illustrating the complex interplay of accountability in the charitable sector.