Nevada Files Against Schwab Foundation
In Wednesday’s filing, the Nevada attorney general asserted that Blaich does indeed reside at the Lake Las Vegas home. The lawsuit alleges that the home’s purchase had “no apparent motive” related to the foundation’s stated purpose of supporting programs that counsel, test and guide children in their career choices.
The lawsuit claims that no rent has been collected on the home. In addition, Blaich has mortgages on two other homes — in Roanoke, Ind., and Ontario, Canada, — while the Lake Las Vegas home was bought with cash. The lawsuit also alleges that the foundation’s administrative and travel expenses increased from 2002 to 2004, even though directors eliminated the philanthropy’s paid staff. The Nevada attorney general’s office will use the spending trends to bolster allegations of financial misappropriation, said Nicole Moon, a spokeswoman with the agency.
The Nevada lawsuit, filed in Clark County District Court, asks for removal of the foundation’s officers and directors, dissolution of Schwab’s Nevada entity and civil damages in excess of $10,000.
The Indiana lawsuit, filed in Allen Superior Court in Marion County, Ind., seeks to undo the asset transfer from Schwab’s Indiana corporation to its Nevada base, and to return those assets to a reinstated and reformed Schwab Foundation in Indiana.
