Attorney General Rob Bonta | Official website
Attorney General Rob Bonta | Official website
California Attorney General Rob Bonta has announced a settlement of nearly $1.2 million with the Valley Rock Foundation, formerly known as the Edward A. Keith Foundation, and its directors Celeste White and Dr. Robert White. The agreement addresses allegations of self-dealing transactions, unjust enrichment, and breach of fiduciary duty by the directors for personal benefits derived from the foundation's charitable assets. Notably, the Whites do not admit liability in this settlement.
Attorney General Bonta emphasized the importance of maintaining integrity within charitable organizations: “At the California Department of Justice, we are unwavering in our commitment to safeguarding the integrity of charitable organizations and will hold any individual or entity accountable that misuses charity funds for personal enrichment,” he stated. “This settlement sends a clear message: Those who abuse their positions and exploit charitable resources for personal gain will be held fully responsible for their wrongdoings.”
The investigation conducted by the Attorney General’s Office found that improvements were made to the Whites' personal properties using foundation assets. It also revealed that Veritas Refuge was allegedly formed to manage real estate assets belonging to the foundation without transparency in financial disclosures.
Under the settlement terms, several actions are required:
- The dissolution of the Valley Rock Foundation is mandated, with remaining assets distributed to Westmont College.
- One director from among the Whites must resign, with an independent director from Westmont College appointed.
- Final grants totaling $10 million will support community projects and renovations at Westmont College.
- A contribution of $997,571 will be made to ImpactAssets, Inc., addressing flood and fire damage claims linked to properties owned by the Whites.
- The California Department of Justice will receive $150,000 for legal fees and investigatory costs.
A copy of the full settlement is available online.
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