BLUE RIVER, Ore. (KATU) — The founder of a former disaster relief nonprofit is being sued for allegedly diverting nearly $837,000 in donations and grants for personal gain.

Oregon Attorney General Dan Rayfield filed the lawsuit Thursday against the founder and executive director of Cascade Relief Team (CRT), Marcus Brooks. In the complaint, Rayfield calls CRT “a sham.”

Brooks is accused of stealing donations and government grants meant for disaster relief following wildfires and flooding in 2020, and using it for personal expenses including casino visits, travel, vehicles, and more.

CRT was founded in 2020 and was hired for cleanup and relief services following the Labor Day Wildfires that burned over 1 million acres across Oregon.

In Blue River, an unincorporated community in the McKenzie River Valley, the 2020 Holiday Farm Fire destroyed nearly 800 homes and burned more than 173,000 acres.

I am angry that my community was taken advantage of

Just months after the fire, long-time Blue River resident Melanie Stanley said CRT stepped in and promised help to the community.

“For us, it was…like a savior at that point,” Stanley said.

Stanley was the manager for the Blue River Resource Center and worked for Brooks to help facilitate recovery efforts. She said CRT operations slowly became questionable.

“None of us knew the level at which all of this stuff that finally came out was at,” Stanley said. “We knew that there was some stuff that had started to look hinky or feel hinky, or there was just some lack of communication that was happening. There were some other things that were happening, and so we just all were kind of guarded.”

In fall of 2023 the nonprofit was reported to have run out of money, and Brooks allegedly fired staff without disclosing the organization’s financial conditions and did not notify donors or beneficiaries. Stanley was one of those people fired.

The state now claims the funds that were meant to go towards communities like Blue River, never made it out of Brooks’ hands, including donations given by Blue River neighbors.

“I am angry that my community was taken advantage of, and I am angry that they now have to worry about trusting when something else happens, because we know something else is going to happen,” Stanley said. “We hope to God it’s never anything as big or as bad as what has happened, but you know, we also have learned that groups like Locals Helping Locals…they are our foundation, and they are because they’re us.”

The state is seeking to recover the money, permanently bar Brooks from serving in a leadership role at a charitable organization and dissolve the nonprofit.

Stanley said Brooks’ actions have tainted reputations.

“We as a community and as the people from the community who helped kind of put all of these things together, we did what was asked of us,” Stanley said. “We did help clean things, and we did help get things to provide, you know, more progress and get things moving forward, and we did good work, and so I just really hope that this is not overshadowed.”

According to Stanley, Blue River’s recovery now stands at 50%.

“We will be very picky from here on out about who and what groups gets let in to help with anything,” Stanley said. “And sadly, it may be to our detriment, but he did more damage now, as far as reputations go, and for that I’m angry. I’m very angry.”