Attorney General Ellison secures removal of nonprofit officials over conflicted misuse of funds

Settlement also requires Borealis Art Guild co-founders to repay funds used to improve building they owned, and Borealis to properly oversee its funds

July 23, 2025 (SAINT PAUL) — Minnesota Attorney General Keith Ellison announced today that his office has reached separate settlements with a Hibbing-based nonprofit, Borealis Art Guild, and its founders, George and Georgia Andria, over allegations that the nonprofit’s assets were improperly spent to improve a property owned by the founders.

Attorney General Ellison’s Office has further secured an assurance removing George and Georgia Andria from the nonprofit’s board and bank accounts, as well as prohibiting them from serving as an officer, director, employee, independent contractor, consultant, or representative of the organization.

Borealis, formed in 2015, has a primary charitable purpose to foster and grow the public’s and artists’ interest in art display by operating classes and programs in Hibbing. A Charities Division investigation found, among other problems, that Borealis assets had been spent to improve a building owned by the Andrias despite those improvements primarily benefiting the Andrias personally, that the nonprofit’s board failed to oversee the Andrias, that Borealis removed directors who asked questions about finances, and that Borealis had not registered with the AGO as required for most nonprofit organizations formed in Minnesota or soliciting funds in Minnesota. 

In the settlement with Borealis, known as an Assurance of Discontinuance and filed in St. Louis County, the nonprofit also agrees, among other things, to: 

• Strictly comply with Minnesota law, including fiduciary-duty obligations, conflict-of-interest requirements, and requirements to register with and annually report to the AGO.  
• Ensure that Borealis’ charitable assets are not used for the private benefit of any individual or for-profit organization; 
• Ensure the entire board is aware of and has access to all financial accounts, including regular review of account statements and expenses; and 
• Ensure that all directors and officers obtain sufficient training to apprise them of their duties under Minnesota law.  

In the separate assurance with them, also filed in St. Louis County, the Andrias agree, among other things to: 

• Repay $138,934 to Borealis within 30 days of the date the court approves the assurance between them and the AGO; 
• Resign from the board and any other leadership positions with Borealis, if they have not done so already; 
• Surrender control over Borealis’ assets and financial and other accounts to the Borealis board of directors; and
• Not form any new nonprofit corporation in Minnesota; act as a director, officer, or other type of representative of any nonprofit corporation; or control, manage, supervise, or oversee any nonprofit’s finances.  

The AGO’s Charities Division has civil enforcement authority under the state’s nonprofit corporation, charitable-solicitation, and charitable-trust laws. The Charities Division does not enforce criminal laws. Under Minnesota law, nonprofit board members and executives owe fiduciary duties to act in the best interests of the charities that they serve, including putting the interests of the nonprofit above any personal financial interests. Information about these fiduciary duties, and other resources to help nonprofit leaders properly serve their organizations, are on the AGO’s website at http://www.ag.state.mn.us/Charity/InfoNonProfits.asp.  

The public may submit complaints to the Attorney General about nonprofit directors and officers who misuse assets or fail to put the charity’s interests before their own. Complaints may be submitted by using a form on the Attorney General’s website. Minnesotans may also contact the Attorney General’s Office by calling (651) 296-3353 (Metro area), (800) 657-3787 (Greater Minnesota), or (800) 627-3529 (Minnesota Relay).