Attorney General’s Office sues charities over $2 million in misused assets
Lawsuit alleges rampant misuse of assets by leaders of both Les Jolies School of Dance and Real Believers Faith Center
Lawsuit further alleges that nonprofit founders Larry and Sharon Cook unlawfully used nonprofit resources to further their for-profit businesses
AG’s Office wins temporary restraining order protecting remaining charitable assets from defendants after filing the lawsuit and TRO request under seal
May 5, 2026 (SAINT PAUL) — Today, Attorney General Ellison’s Office announced it has filed a lawsuit against Les Jolies School of Dance, Real Believers Faith Center, their founders, Sharon Cook and her husband Larry Cook, and other officers of both charities for multiple egregious violations of Minnesota nonprofit law, including misusing over $2 million in charitable assets to fund lavish lifestyles, luxury travel, and designer goods while pretending to serve their communities.
Les Jolies School of Dance is a nonprofit dance studio founded by Sharon Cook while Real Believers Faith Center is a nonprofit church founded by Larry Cook. Both nonprofits are located in Minneapolis.
The Attorney General’s Office’s (AGO) lawsuit accuses the Cooks and other leaders of Real Believers and Les Jolies of multiple violations of the law, including breaching of nonprofit director and officer fiduciary duties under the Minnesota Nonprofit Corporation Act, violations of the Minnesota Nonprofit Corporation Act, and failure to register with the Attorney General’s Office as required by law.
The AGO filed this lawsuit under seal on April 2, 2026 and requested a temporary restraining order on April 3, 2026 to protect nonprofit assets from being diverted and concealed when the defendants learned of the lawsuit. The request for a temporary restraining order was signed on April 15, 2026. Following the granting of the temporary restraining order, the Attorney General’s Office moved to unseal the lawsuit, which was granted on May 5, 2026.
Members of the media and public can read the lawsuit here, the memo in support of a temporary restraining order here, and the temporary restraining order issued by the court here.
Real Believers Faith Center
The AGO’s lawsuit, filed in Hennepin County, alleges that more than $1,300,000 of Real Believers’ charitable assets were misused between February 2018 and October 2024. Real Believers has at least two bank accounts: Larry Cook is the only signatory on one account and Sharon Cook is the only signatory on another. The investigation that the Charities Division of the Attorney General’s Office conducted found that approximately 91% of transactions from Larry Cook’s account had no identified nonprofit purpose, and approximately 50% of the transactions from Sharon’s account had no identified nonprofit purpose.
Examples of transactions from the Real Believers’ bank accounts include $278,710 in cash and bank withdrawals and over $150,000 in cash transfers to the Cooks and their family members, as well as a payment to “Capsol Villa Rentals” for $11,737 and two payments at the Marrion Hotel in London for $9,482 and $2,802. The Cooks even paid their homeowner’s association for parking fines and late fees from a Real Believers bank account. When asked about these expenses in depositions, Sharon Cook, Larry Cook, and other Real Believers officers invoked their Fifth Amendment right to avoid criminal self-incrimination.
Les Jolies School of Dance
The AGO’s lawsuit further alleges that approximately $800,000 of Les Jolies’ charitable assets were misused from April 2018 through June 2024. Examples of how Les Jolies’ funds were misused include over $50,000 in money-transfer app payments to Larry and Sharon Cook and their family members, a $9,140 payment to Commendable, a luxury travel company, a Louis Vuitton store payment for $1,106, and a Michael Kors store payment for $1,150. Larry and Sharon Cook once again invoked their Fifth Amendment right when asked about these transactions.
The lawsuit also alleges that Sharon Cook founded LJP Costumes LLC, which appears to conduct no business outside of serving as a conduit to funnel Les Jolies’ charitable funds to the Cooks. Charitable donations and grant funds for Les Jolies were regularly deposited into the LJP Costumes bank account.
Purchases made from the LJP Costumes bank account included a $17,885 payment to Minnestay LLC, a Minnesota vacation rental business, a $5,000 payment to Celebrity Cruises, a $1,230 payment to Vivid Seats NBA, and multiple cash transfers to members of the Cook family, one of which was labeled “spending $”. Sharon Cook and other defendants once again invoked their Fifth Amendment right to avoid criminal self-incrimination when asked about these expenses during their depositions.
Additionally, the lawsuit alleges that Sharon and Larry Cook took out over $650,000 in loans using the Les Jolies dance studio and Real Believers church building as collateral. Neither of the charities’ boards of directors approved the loans.
For-Profit Businesses
The AGO’s lawsuit also alleges violations of Minnesota nonprofit law with respect to multiple for-profit business endeavors launched by the Cooks.
One such endeavor involves a 2022 lease and licensing agreement that Larry Cook entered into on behalf of Real Believers for a property at 1120 W. Broadway Ave. in Minneapolis containing a gas station/convenience store. The licensing agreement required Real Believers to pay $70,000 upfront and $6,000 every month to run the gas station/convenience store, which Cook named the Lion’s Den Gas Station. The proceeds from running the business went to a new for-profit entity founded by the Cooks, the Lions Den Pride Covenant Enterprises LLC. This arrangement meant that the nonprofit run by the Cooks paid the monthly licensing fees to run the business while the profits from the business went to a for-profit corporation founded by the Cooks. Real Believers also transferred charitable funds directly to the gas station, which were then deposited into a Covenant Enterprises bank account.
Filing Under Seal and Winning a Temporary Restraining Order
By the time the Attorney General’s Office filed its lawsuit, the defendants had taken multiple steps to obstruct the Office’s investigation. These actions gave the Charities Division of the Attorney General’s Office reason to believe that the defendants were likely to attempt to divert and conceal nonprofit assets upon the filing of any lawsuit challenging their misappropriation of charitable funds.
In early March 2025, members of the AGO’s Charities Division took sworn testimony from Larry and Sharon Cook about the governance and finances of Les Jolies and Real Believers. Several weeks later, Sharon Cook dissolved Les Jolies without providing the Attorney General’s Office with proper notice as required by law. Three months later, Larry Cook sold Real Believers’ church, then entered into an agreement to repurchase the church for the exact same amount of money he sold it for. Cook’s agreement to repurchase the property was done via a contract-for-deed agreement, which allows a buyer to purchase property directly from a seller over time, at 11.05% interest.
Defendants also failed to answer the AGO’s civil investigative demands, either fully on the part of Les Jolies or at all on the part of Real Believers. Defendants also inappropriately asserted their Fifth Amendment privilege against self-incrimination to avoid answering virtually any substantive questions during their depositions.
These actions led the Attorney General’s Office to file this lawsuit under seal and move to secure a temporary restraining order to protect nonprofit assets.
The Attorney General’s Office’s Civil Enforcement Authority Over Nonprofits
In Minnesota, the Attorney General, through the Charites Division, has civil enforcement authority over the state’s nonprofit corporation and charitable solicitation laws. The Attorney General also has statutory authority to enforce consumer protection laws. The Charities Division does not enforce criminal laws. Under state law, nonprofit executives owe fiduciary duties to act in the best interest of the charities that they serve, including putting the interests of the nonprofit above any personal financial interests. 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 putting their own interests before the charity’s interests. Complaints may be submitted by using a form on the Attorney General’s website. The Attorney General’s Office can also be reached by calling (651) 296-3353 (Metro area), (800) 657-3787 (Greater Minnesota), or (800) 627-3529 (Minnesota Relay).
