Sensory Integration (sic) International is a nonprofit corporation that purports to treat children with sensory integration deficiencies and to offer educational programs for health professionals who treat persons with sensory integration problems. [The California Attorney General] learned that Sensory Integration was commingling charity assets with the personal assets of one of its officers, engaging in self-dealing transactions where personal interests conflicted with those of the charity, and failing to refund fees for canceled seminars. [The California Attorney General] also discovered that substantial charitable assets have been improperly diverted by those in control of the charity.
The Attorney General filed a civil complaint against Sensory Integration and other defendants, including various current and former officers and directors, seeking damages, civil penalties, restitution, an accounting, appointment of a receiver, and involuntary dissolution of the charity. The complaint also sought an injunction preventing the defendants from controlling the assets of Sensory Integration and from conducting any business on its behalf, including charitable solicitations.
On June 22, 2007, the Attorney General obtained a preliminary injunction prohibiting, throughout the United States, the conduct of any business activities regarding Sensory Integration and further prohibiting the exercise of control over any of the charity’s assets.
