HENRY COUNTY, Ga. — State investigators are now demanding records from a popular local charity after a Channel 2 Action News investigation exposed potential fraud.
Whistleblowers told us the Noah's Ark Children's Care Home and Noah's Ark Animal Sanctuary were misusing donations.
"You're dealing with other people's money, and it's important that you can account for where everything is spent," said Jo Crane, who worked as the charities' assistant controller.
She's one of three former employees who say the nonprofits misused donations for personal expenses, co-mingled money between the animal sanctuary and the children's charity, and that when the insiders tried to stop it, they were fired.
"Literally, I freaked out. I'm like, 'Holy crap. I'm involved in a major, major scam,'" said Christy Cunningham, who worked as the Noah's Ark marketing director.
The secretary of state's subpoena demands a list of every child ever housed at Noah's Ark. It was issued after Channel 2 revealed that the Children's Care Home actually stopped taking foster children in 2010.
Tax records show it took in an additional $658,000 since then, continuing to solicit donations through its website, even in 2015.
The charity's founder, Jama Hedgecoth, lives in the home with her own adopted children.
"Our mission is just to protect the donors. It's very important," said Ryan Germany, assistant commissioner for the Georgia Secretary of State's Charities Division.
State investigators also want to see an accounting of every donation given to the Noah's Ark Animal Sanctuary and Children's Care Home going back seven years, including the dates, dollar amounts and contact information for each donor.
"Georgians are very generous and we want to make sure their generosity is spent in a way that they are intending it to be spent," said Germany.
He says the biggest red flag is money used for personal expenses, so the subpoena also asks for financial statements from every bank account and credit card.
In November, Hedgecoth said her charities serve a great need.
"I have never misspent one penny, not one penny. And I can prove it," said Hedgecoth.
Records show the Noah's Ark charities take in roughly $2 million each year.
After the Channel 2 report, the online watchdog, Charity Navigator, issued a donor advisory for Noah's Ark.
Several other former employees and foster children who lived in the home years ago also contacted us to help verify the whistleblowers' claims.
The charities have until Jan. 8 to comply with the state subpoena.
Late Tuesday afternoon, an attorney for Noah's Ark sent a statement reading, in part, that the charities will cooperate with any inquiry and are confident [they] will be vindicated once the secretary of state's office concludes its inquiry.
WSBTV
