PORTLAND, Ore. (KOIN) — An Oregon nonprofit and its founder are being sued by the attorney general for allegedly stealing charitable funds meant to help victims of wildfires, floods and tornadoes.
The lawsuit was filed April 16 in Multnomah County Circuit Court against Cascade Relief Team and its founder Marc Brooks, who is accused of stealing nearly $837,000 in donations and grants to fund personal trips to casinos, strip clubs, Disneyland and more.
“Oregonians donated to this organization because they wanted to help their neighbors recover from wildfires and floods,” said Oregon Attorney General Dan Rayfield.
“Instead, that money went into one man’s pocket, spent on casino trips and personal bills while flood and fire victims waited for assistance. We will be sure he is held accountable for every dollar he took.”
Brooks founded the Cascade Relief Team after the Labor Day wildfires ravaged Oregon in 2020, and was vocal about the organization’s work. Late the following year, CRT announced they were traveling to Kentucky to provide tornado relief.
But CRT was never legitimately governed, according to the lawsuit. Board members who were listed on government filings had never seen a financial record or attended a meeting. Brooks himself didn’t even keep records or make any attempts to track the charitable assets he controlled. Instead, he opened multiple bank accounts in CRT’s name, run those dry and rack up excessive fees until eventually the bank closed each account.
CRT reported $48,000 in revenue in 2020 but only $26,195.76 was deposited, according to the lawsuit. In 2021, CRT reported revenues of $941,587, but only $856,000 was deposited. The massive growth in revenue was due mostly to an influx of donations from Oregonians who responded to solicitations for humanitarian assistance.
The other main source of income for CRT was a contract with the Oregon Department of Human Services, which reportedly provided CRT a list of Oregonians who were eligible for and in need of assistance. They paid CRT $60 an hour and reimbursement for expenditures to provide Oregonians in need with social service and wraparound support from November 2022 to June 2023, but chose not to renew the contract due to concerns over CRT’s governance.
In 2023, the Oregon State Fire Marshal awarded CRT a $100,000 grant to remove trees and debris from the Echo Mountain, Riverside, Beachie Creek, Almeda, Bootleg and Holiday Farm fires. CRT had previously outlined its plan for the money on its Facebook page, but removed it upon receiving the money. Because the grant required a workplace and regular progress reports, OSFM tried to contact CRT regarding the plan and any updates, but their email address no longer worked. To date, OSFM has been unable to confirm whether CRT performed any of the work.
In another instance, the Red Cross granted CRT $326,000 to assist Kentucky tornado victims, but the money landed in an account that was already significantly overdrawn. As a result, nearly $17,000 of the grant money meant to help disaster victims went to cover overdraft fees incurred by Brooks’ mismanagement. He used the remaining $309,000 to start his own business, according to the complaint.
Brooks allegedly used charitable funds for his own benefit, including nearly $271,000 in payments to his personal credit cards, loans and bills; more than $116,000 on travel with no connection to disaster relief; $155,000 in loans solicited for CRT’s use, but never deposited into CRT accounts; more than $67,000 on personal expenses such as rent, child support, liquor, strip clubs and jewelry, and more.
CRT reportedly ran out of money in late 2023, and Brooks fired the entire staff. He made no efforts to reach out to its donors or beneficiaries, and he did not distribute any assets to another charity, remove the website or dissolved the corporation, according to the complaint. The IRS revoked its tax-exempt, tax-deductible status.
The lawsuit asks for Brooks to repay the $836,781.90 lost, permanently dissolve CRT, and that he be prohibited from leading or handling any money for another charitable organization in the future.
Brooks did not respond to multiple requests for comment.