Attorney General Ellison secures $220,000 in restitution for Hmong College Prep Academy in lawsuit over former superintendent’s breach of fiduciary duties

School will obtain relief after losing millions in an illegal investment made by the former superintendent

September 15, 2025 (SAINT PAUL) — Minnesota Attorney General Keith Ellison announced today that he has reached a settlement agreement with former Hmong College Prep Academy (“HCPA”) superintendent Christianna Hang.  In the settlement, Hang has agreed to pay the Attorney General’s Office $220,000 to settle nonprofit breach-of-fiduciary duties claims arising from her loss of over $4 million of the school’s assets in a risky and illegal investment in a hedge fund. The Office will pay the money to HCPA to partially restitute it for its loss.

“The lapse in judgment that led Ms. Hang to invest millions of nonprofit assets into an obscure hedge fund is truly astonishing,” said Attorney General Ellison. “I am pleased that we were able to obtain as much relief as possible for Hmong College Prep Academy in this action. This lawsuit is an important reminder of why nonprofit directors and officers are required under Minnesota law to act in the best interest of their organization. No nonprofit leader should take funds meant to advance their charitable mission and instead sink those funds into risky and illegal investments. I will continue working to improve transparency and accountability in Minnesota’s nonprofit sector, and I encourage Minnesotans with concerns about the mismanagement of charitable assets to contact my office.”

“Because education is vital to the success of our kids and communities, schools can’t afford to lose the resources that fund them,” Auditor Julie Blaha said. “That’s why the law does not allow risky investments by public schools. Thank you Attorney General Ellison for taking our findings and turning them into action that protects our students.”

The Attorney General’s Office brought a lawsuit against Hang due to her decision to commit HCPA to invest in a hedge fund, contrary to school policy and Minnesota state law.  Hang entered HCPA into the investment with Woodstock and wired $5 million of the school’s money to Woodstock without the prior knowledge of HCPA’s board of directors, against the advice of HCPA’s attorney and accountants, and without any meaningful degree of research into the hedge fund or its principals.  Hang resigned as superintendent in 2021 after details of the failed deal became public and the school was sharply criticized in a report by the Office of the Minnesota State Auditor.  The Charities Division subsequently initiated an independent investigation under the state’s nonprofit corporation, charitable-solicitation, and charitable-trust laws.

In Minnesota, the Attorney General, through the Charities Division, has civil enforcement authority over the state’s nonprofit corporation and charitable solicitation laws. The Charities Division does not have authority to enforce criminal laws.  Under state law, nonprofit executives owe fiduciary duties to act reasonably and in the best interest of the charities that they serve.  The Attorney General’s Office provides additional information about these fiduciary duties, as well as other resources to help nonprofit leaders properly serve their organizations, on its website.

The public may submit complaints to the Attorney General about nonprofit directors and officers. Complaints may be submitted by using a form on the Attorney General’s website. The Attorney General’s Office can also be contacted by phone at (651) 296-3353 (Metro area), (800) 657-3787 (Greater Minnesota), or (800) 627-3529 (Minnesota Relay).