Minnesota Attorney General Keith Ellison has reached a settlement with Northern Lakes Rescue (NLR), a nonprofit based in Brainerd, following an investigation into the misuse of charitable assets by its founder and former president, Shannon Steele. According to an Assurance of Discontinuance filed in Ramsey County, Steele unlawfully used approximately $156,000 of NLR funds for personal expenses such as jet ski rentals and credit card payments.
The investigation conducted by the Charities Division of Ellison’s Office found that NLR failed to provide proper governance and oversight, allowing Steele to divert funds away from the nonprofit's mission. The settlement prohibits Steele from serving in any capacity at NLR or managing its financial affairs.
"Minnesotans are generous people and expect the hard-earned money they donate to charity will be used for the causes they believe in," stated Attorney General Ellison. "It’s disturbing that Northern Lakes Rescue’s founder and former president instead misused charitable assets, and equally disturbing that the board of directors allowed this to happen."
In Minnesota, the Attorney General's Office holds civil enforcement authority over nonprofit corporations. Nonprofit executives are required by law to prioritize their organizations' interests over personal financial gains.
This civil settlement does not protect Steele from potential criminal charges; she was charged with tax evasion in Crow Wing County in 2023.
Minnesotans can report concerns about nonprofit governance on the Attorney General’s website or contact his office directly.