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Judge freezes Lamb’s House accounts at request of AG

LISBON — A judge this week issued an order to prevent anyone from the Lamb’s House nonprofit in Rogers from selling or transferring any property or accessing any bank accounts belonging to Lamb’s House, and to freeze the bank accounts and appoint a receiver for the charitable institution.

Columbiana County Common Pleas Court Judge Megan Bickerton approved the temporary restraining order sought by Ohio Attorney General Dave Yost to prevent the defendants in the case from taking any action related to the property at 9955 Union Ridge Road, Rogers or the bank accounts.

She also appointed attorney Ken Goldberg of the Columbus law firm Strip Hoppers Leithart McGrath & Terlecky Co. as the receiver of all assets and accounts related to Lamb’s House and outlined in detail his duties related to controlling everything for the nonprofit, from the property to the bank accounts, any leases, any creditors and even the mail.

A hearing was set for 1 p.m. Nov. 6.

In granting the motion, Bickerton found that “there is good cause to believe that Mark Altomare, Jo Propri and Randy Clark breached their fiduciary duties owed to the beneficiaries of Lamb’s House, failed to protect the charitable assets of Lamb’s House, and the plaintiff (Yost) is likely to prevail on the merits of such claims.”

She also found that there was good cause “to believe that Mark Altomare converted the charitable assets belonging to Lamb’s House for his own personal benefit and to the detriment of Lamb’s House.”

Yost filed the complaint last week asking that the Lamb’s House nonprofit be dissolved, claiming alleged misuse of the charitable funds and property controlled by board president Mark Altomare. Altomare was reportedly living on the nonprofit’s 43-acre Union Ridge Road property. Also named as defendants were the organizations other board members, Jo Propri of Warren, and Randy Clark of East Liverpool.

The motion said a receiver was needed to take immediate control of any remaining assets of Lamb’s House, which includes a 9-bedroom house, a 13,000 square-foot multi-bed commercial building and two barns on the property, along with at two checking/savings accounts. Lamb’s House was founded as a ministry supporting addiction recovery and was incorporated on July 8, 2002, receiving tax-exempt status on May 16, 2003. The complaint said the board members failed to oversee the operation, allowing Altomare to allegedly help himself to the funds and assets of the nonprofit for his own personal expenses.

On Tuesday, an attorney for L & L Real Holdings LLC requested an order to allow them to intervene with a third-party claim against the defendants over a contract to purchase Lamb’s House property.

According to the document, in July this year, L & L Real Holdings LLC made an offer to purchase the property and prepared a purchase agreement executed by Altomare and ratified by the other two trustees. The company paid a downpayment in excess of $50,000 to the Columbiana County treasurer to pay delinquent property taxes and paid all costs and fees associated with a foreclosure filing by the county. Closing was set to occur on Aug. 28, but Lamb’s House allegedly breached the contract and Altomare was refusing to sell the property.

The lawsuit by Yost made claims of breach of fiduciary duties, abuse of a charitable trust, reformation of a charitable trust, unjust enrichment, conversion and false and misleading information in filings. The lawsuit alleged board members falsely reported rental income from its lease to the for-profit entity as individual contributions, gifts, grants and similar amounts received and falsely reported the actual income received by Altomare by failing to include compensation for housing, utility bills, food, cell phone and grocery expenses provided to him.

The complaint is also seeking a permanent injunction to stop Altomare, Propri and Clark form ever holding positions as officers or directors of any charitable trust or charitable organization in Ohio or from soliciting in Ohio for charitable purposes as a volunteer, trustee, officer, employee, representative, agent or independent contractor.

An order of restitution for civil damages is being sought against Altomare for an amount exceeding $25,000 for money not used to support the charitable programming. Civil penalties of $10,000 each are being sought against Altomare, Propri and Clark for each violation.

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