The defunct design nonprofit Architecture for Humanity (AFH) is facing more legal woes as a court-appointed trustee seeks to recover $3 million in damages after it went bankrupt in 2015.
A filing with the North District of California alleges “wholesale looting” of donor funds. The filing details how the nonprofit allegedly funneled restricted funds to foot ballooning overhead costs as it grew in scale.
The respondents are AFH cofounders Cameron Sinclair and Kate Stohr, as well as 10 former volunteer board members from Silicon Valley and New York.
Donors based the lawsuit on warnings from legal counsel back in 2014 for AFH to shut down when it still had $3 million in its coffers left, which it was meant to redistribute to donors. When it shut down last year, its resources were down to $200,000.
If the court decides against AFH, damages will be paid to donors such as Nike and Amazon.
