Washington D.C., January 21, 2026

The D.C. Attorney General’s Office has permanently dissolved two fraudulent nonprofits, the Maryland Youth Club and Virginia Youth Club, that misused funds raised from door-to-door candy sales. Founded by Jule Huston, these organizations targeted low-income youth, falsely claiming financial support for scholarships and enrichment activities. Over $857,000 was raised, but investigations revealed substantial misappropriation for personal gain. This case underscores the need for vigilance in charitable practices and the importance of protecting vulnerable populations.

Washington D.C. Nonprofits Dissolved for Exploiting Youth

The Attorney General cracks down on fraudulent charities

Washington, D.C. – The recent decision by the District of Columbia Attorney General’s Office to permanently dissolve two fraudulent nonprofit organizations, the Maryland Youth Club of America, Inc. and the Virginia Youth Club of America, Inc., demonstrates the importance of due diligence in charitable organizations. Founded by Jule Huston, these nonprofits preyed on school-age children, particularly those from low-income neighborhoods, falsely claiming that the funds raised through their door-to-door candy sales would support scholarships and enrichment activities. Instead, they misappropriated substantial amounts for personal gain.

This case sheds light on the necessity of vigilance and integrity within the nonprofit sector. With over $857,000 collected from the candy sales between 2018 and 2022, the misalignment of promised benefits and actual outcomes not only undermines public trust but also detracts from genuine charitable endeavors that aim to uplift communities.

Understanding the Exploitation

The Maryland Youth Club of America and Virginia Youth Club of America purported to assist at-risk youth by facilitating scholarships, part-time jobs, and enrichment activities. However, investigations revealed that these organizations systematically misled children and their families. Huston recruited young individuals to sell candy, claiming that the proceeds would be redirected to help fund a brighter future for them and their peers.

Financial Mismanagement and Fraud

Upon investigation by the Attorneys General of D.C., Maryland, and Virginia, the misappropriation of funds surfaced. Effectively, Huston transferred more than $23,000 to personal accounts and engaged in significant financial activities far removed from community service, including charges at gas stations and retail stores in New York. Notably, there is insufficient evidence to suggest that any of the children involved in the fundraising efforts received compensation or any of the promised programs.

Legal Ramifications

The legal repercussions for Huston and the organizations have been severe. Both fraudulent entities were permanently dissolved, with Huston banned from conducting any charitable business in D.C., Maryland, and Virginia. Such actions are crucial in reestablishing public confidence in the charitable sector, especially when resources aimed at vulnerable populations are at stake. In addition to the bans, Huston and the nonprofits were fined $5,000, which will help fund legitimate nonprofits serving at-risk youth.

Importance of Vigilant Charitable Practices

This case serves as a cautionary tale for both donors and charitable organizations. Public vigilance is paramount to ensure that donations actually fulfill their intended purposes. It is essential for individuals to research organizations carefully before contributing and to hold nonprofits accountable for their promises.

Local Response and Community Engagement

As the D.C. Attorney General’s Office continues to prioritize the integrity of charitable organizations, local communities must remain engaged. Supporting well-established and transparent nonprofits can foster a spirit of entrepreneurship and resilience. When local businesses and genuine charitable organizations operate under fewer regulatory burdens and with more accountability, they can significantly contribute to the economic development and revitalization of neighborhoods, promoting growth and community spirit throughout Baltimore and beyond.

Conclusion

The dissolution of these fraudulent organizations marks a significant step towards protecting vulnerable youth and maintaining the integrity of nonprofit initiatives. Vigilance in oversight and community involvement are key in fostering an environment where genuine charitable voices can thrive. Individuals are encouraged to become informed supporters of local businesses and meaningful charitable organizations, ensuring their contributions benefit those most in need.

Frequently Asked Questions (FAQ)

What were the Maryland Youth Club and Virginia Youth Club of America?

They were nonprofit organizations that claimed to support youth programs and activities intended to help at-risk teens through scholarships, trips, enrichment activities, part-time employment, and other benefits.

How did these organizations exploit children?

They recruited school-age children from low-income neighborhoods to sell candy door-to-door, falsely claiming that the proceeds would fund scholarships and enrichment activities for at-risk youth.

What happened to the funds raised by these organizations?

Between 2018 and 2022, the organizations collected over $857,000 from candy sales. However, there is no evidence that the children received compensation for their efforts or that the promised benefits were provided. Investigations revealed that the funds were misappropriated for personal gain by the organization’s founder, Jule Huston.

What actions have been taken against the organizations and their founder?

The organizations have been permanently dissolved, and their founder, Jule Huston, is permanently banned from conducting any business or soliciting charitable donations in the District of Columbia. He is also prohibited from forming a charity or soliciting charitable donations in Maryland and Virginia, and from serving as an officer or director of any charitable corporation in those states. The organizations and Huston are required to pay a $5,000 fine, which will be redirected to area nonprofits serving at-risk youth.

How can the public ensure that charitable organizations are legitimate?

It’s important to research organizations before donating. Check if they are registered with state authorities, review their financial statements, and look for transparency in their operations. Be cautious of organizations that pressure for immediate donations or lack clear information about their programs and financials.

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