Rajesh Mehta settles Minnesota nonprofit asset misuse case

The Minnesota Attorney General's Office has reached a settlement with Rajesh Mehta, the president of the dissolved St. Paul nonprofit Act of Cause (AFC). As part of the agreement, Mehta is banned from serving as an officer or director of any Minnesota nonprofit for 20 years.

Mehta is also required to pay $200,000 in penalties, though $100,000 of that amount will be stayed. The lawsuit, filed by Attorney General Keith Ellison, alleged that Mehta engaged in self-dealing, misused nonprofit assets for personal benefit, and failed to maintain proper board governance.

Act of Cause was established in 2014 to provide employment assistance, community support, and housing information. The investigation into the organization was initiated by the Charities Division following a constituent complaint.