Attorney General Ellison reaches settlement with nonprofit corporation over self-dealing loans

Investigation found co-founders engaged in self-interested transactions like loans to family members and personal purchases

October 22, 2025 (SAINT PAUL) — Minnesota Attorney General Keith Ellison announced today that he reached a settlement with Pelican Rapids-based nonprofit organization, Dan Ottoson Ministries, Inc., after uncovering evidence that the organization engaged in conflicted transactions and self-interested lending. The settlement requires Dan Ottoson Ministries to repay $238,000 in self-dealing loans and change governance deficiencies that allowed the improper loans to occur.

An investigation conducted by Attorney General Ellison’s Charities Division found that Dan Ottoson Ministries engaged in a number of self-interested loans and other transactions totaling $238,000 for purposes unrelated to the charity. This includes loans made to charity directors and their family members to purchase vehicles, purchase a boat, fund an MBA, and for a home remodeling project. None of the loans furthered the charitable mission of the organization. They contained loan terms that were extremely favorable to the recipients, and the repayment schedules were not followed or enforced by the organization. The conduct was enabled by the fact that the charity did not have a fully functional board of directors for several years.

“Charities are supposed to benefit the public—not their leaders and family members,” Attorney General Ellison said. “Every charity should have a functional, independent board to make sure assets are used for the greater good and to prevent conduct like this from happening in the first place. While I am disappointed to see charitable assets misused in such a way, I am pleased to have secured a settlement that recovers those misused assets and strengthens governance and oversight at Dan Ottoson Ministries.”

Under the terms of an Assurance of Discontinuance (“Assurance”) filed in Ramsey County, all the remaining loan balances have been paid back to Dan Ottoson Ministries, Inc. Among other actions, Dan Ottoson Ministries will also ensure that its assets are not used for any individual’s private benefit, and that it is managed by a board of directors as required by Minnesota law, and that no further loans are made to Ottoson family members. The charity will be required to submit an update to the Minnesota Attorney General’s Office in one year detailing the progress made to improve its governance.

The AGO’s Charities Division has civil enforcement authority over the state’s nonprofit corporation, charitable-solicitation, and charitable-trust laws. The Charities Division does not enforce criminal laws. Under Minnesota law, nonprofit board members and executives owe fiduciary duties to act in the best interests of the charities that they serve, including putting the interests of the nonprofit above any personal financial interests. Information about these fiduciary duties, and other resources to help nonprofit leaders properly serve their organizations, is on the AGO’s website at www.ag.state.mn.us/Charity/InfoNonProfits.asp.

The public may submit complaints to the Attorney General about nonprofit directors and officers putting their own interests before the charity’s interests. Complaints may be submitted by using a form on the Attorney General’s website, or by calling (651) 296-3353 (Metro area), (800) 657-3787 (Greater Minnesota), or (800) 627-3529 (Minnesota Relay).