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COMMONWEALTH BY KANE v. NEW FOUNDATIONS

No. 36 M.D. 2014.

182 A.3d 1059 (2018)

COMMONWEALTH of Pennsylvania, BY Kathleen KANE, Attorney General, Plaintiff v. NEW FOUNDATIONS, INC., a Nonprofit Corporation; Firetree, Ltd., a Nonprofit Corporation; Orange Stones Co., a Nonprofit Corporation; Individually; Catherine Ertel, Individually; Edward Ertel, Individually; Amy Ertel, Individually; William C. Brown, and Catherine K. Ertel as executrix of the Estate of Allen E. Ertel, Individually; Defendants.

Commonwealth Court of Pennsylvania.

Decided: March 1, 2018.

Reconsideration Denied March 27, 2018.

Attorney(s) appearing for the Case

Mark A. Pacella , Chief Deputy Attorney General, and Heather J. Vance-Rittman , Senior Deputy Attorney General, Harrisburg, for plaintiff.

John C. Eustice , Washington, DC, for defendants New Foundations, Inc., Firetree, Ltd., and Orange Stones, Co.

Corey J. Mowrey , Williamsport, for defendants Catherine Ertel, Edward Ertel, Amy Ertel, Allen E. Ertel, Estate of Allen E. Ertel, and William C. Brown.

BEFORE: HONORABLE DAN PELLEGRINI, Senior Judge

OPINION BY SENIOR JUDGE PELLEGRINI

The Commonwealth, through its Attorney General, brought an action as parens patriae against New Foundations, Inc. (New Foundations), Firetree, Ltd. (Firetree), and Orange Stones Company (Orange Stone) (collectively, Charities). Each was created as a charitable nonprofit with different but related charitable purposes. New Foundations was incorporated to provide services to families and children, with special emphasis...

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