Attorney General Ellison sues nonprofit and its president for the blatant misuse of charitable assets 

Ellison files lawsuit against Act for Cause and its president, Rajesh Mehta, for misuse and self-dealing of nonprofit assets and governance violations under the Nonprofit Corporation Act

January 6, 2026 (SAINT PAUL) — Minnesota Attorney General Keith Ellison announced today he has filed a lawsuit against Minnesota nonprofit corporation Act for Cause (“AFC”) and its president, Rajesh Mehta, alleging self-dealing, misuse of nonprofit assets, and a variety of governance violations. According to Mehta, Act for Cause’s mission was to “provide employment assistance, community support, and access to information on housing and employment resources.”

The Attorney General’s lawsuit, filed in Ramsey County, alleges Mr. Mehta improperly used AFC’s assets for his personal benefit in numerous ways, and that upon dissolving AFC, he unlawfully transferred title of AFC’s $1 million commercial property to his for-profit corporation without compensating AFC. Prior to dissolving AFC, the nonprofit leased space in its commercial property to roughly 10-15 tenants at any given time.  Many of the tenants that Mehta was renting to were for-profit entities, and Mehta rented space to them for his personal profit. Mehta also impermissibly intermingled AFC’s finances with his own and used AFC bank accounts to pay for personal expenses, including his son’s college tuition fees, piano lessons, gym memberships, personal property taxes, car payments, and more. Additionally, Mehta also made large cash withdrawals from AFC’s account that he could not later explain. The lawsuit further alleges that AFC was not properly governed by a board of directors.

“It is appalling that the defendant founded and used a nonprofit to serve his own personal interests, rather than help the people of Minnesota,” Attorney General Ellison said. “My office launched this investigation and filed this lawsuit because I will not allow nonprofits to serve as a guise for nonprofit leaders to enrich themselves.”

After receiving a complaint from a constituent regarding Mr. Mehta and AFC, the Charities Division of the Minnesota Attorney General’s Office investigated under Minnesota’s civil Nonprofit Corporation Act and the Supervision of Charitable Trusts and Trustees Act.  The resulting lawsuit includes claims related to violations of the Minnesota Nonprofit Corporation Act for lacking a board of directors, failing to have annual board meetings, failing to maintain financial records, and breaches of director’s and officer’s fiduciary duties.

In Minnesota, the Attorney General, through the Charites Division, has civil enforcement authority over the state’s nonprofit corporation and charitable solicitation laws.  The Attorney General also has statutory authority to enforce consumer protection laws and seek an injunction to enjoin the unauthorized practice of law.  The Charities Division does not enforce criminal laws.  Under state law, nonprofit executives owe fiduciary duties to act in the best interest of the charities that they serve, including putting the interests of the nonprofit above any personal financial interests.  The Attorney General’s Office provides additional information about these fiduciary duties, as well as other resources to help nonprofit leaders properly serve their organizations, on its website.

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