Minnesota Attorney General Keith Ellison has initiated legal action against Christianna M. Hang, the former superintendent of Hmong College Prep Academy (HCPA) in St. Paul. The lawsuit claims that Hang's illegal investment in a hedge fund led to a $4.3 million loss for the school.
Hang, who founded HCPA in 2003, allegedly invested with Woodstock Capital Partners LP, defying both legal and accounting advice and violating Minnesota law prohibiting such investments by charter schools. The Attorney General is seeking to recover the lost funds and impose civil penalties under Minnesota Statutes sections 8.31 and 309.57.
Ellison expressed his disbelief at the situation: "I am frankly stunned by the recklessness HCPA’s former superintendent displayed when she took millions of dollars meant to educate children and instead wired them into some obscure hedge fund."
The complaint details that Hang committed $5 million from HCPA without informing its board or conducting proper research into the hedge fund. She resigned in 2021 following public criticism from a report by the Office of the Minnesota State Auditor.
In addition to suing Hang, Ellison has filed an Assurance of Discontinuance with HCPA, demanding reforms in its governance and investment strategies. This measure addresses allegations that HCPA's board failed to supervise Hang adequately as required by law.
The public can submit complaints about nonprofit directors via an online form or contact the Minnesota Attorney General’s Office directly for more information.