FDLE probes KLD Youth Ministries finances
MERRITT ISLAND – As KLD Youth Ministries prepares for Dancing with Brevard — one of the Space Coast's highest-profile fundraisers — Florida Department of Law Enforcement agents are investigating the nonprofit's management and fiscal practices.
After experiencing fiscal difficulties and a board shake-up in recent months, KLD closed its centerpiece school serving Brevard at-risk students. The last remaining eight seniors were sent to another private school two weeks ago.
Now, the organization's leaders have launched an "agri-science campus" where children can raise crops on north Merritt Island. KLD moved its offices there from Rockledge, and the group hopes to raise cash to install 1,200 hydroponic growing towers by August.
According to a heavily redacted Brevard County Sheriff's Office report, an unidentified person discussed allegations of KLD fraud Feb. 4 with Brian Neal, a sergeant with the sheriff's Economic Crimes Unit.
In an interview Friday, Sheriff Wayne Ivey said he asked FDLE to investigate after a former longtime KLD board member raised allegations regarding management of the group's operations. He declined to divulge details, citing the ongoing investigation.
Ivey served as a KLD board member until he resigned in early March. He said his resignation was unrelated to the FDLE investigation; rather, he is stepping back from numerous boards. On July 1, he said he will join United Way of Brevard's executive committee in advance of chairing the organization's 2015 fundraising campaign.
"In the fairness of transparency, I felt it was best to have FDLE look at it as a fair and independent source. I'm the sheriff first before I'm anything else. Once an allegation's made, I feel it's very important to make sure that allegation's completely vetted," Ivey said.
Janet Shaffer, a KLD co-founder and chief executive officer, said, "I applaud the investigation and look forward to the results."
"My life's work and passion has always been to positively affect the lives of children. From being a mom to many — having foster children — and serving the hundreds of young people through my work at KLD, I am always blessed to see the results that love and empowerment have on them," Shaffer said Friday.
"These young people bring to us some of the most heart-wrenching stories of challenged and often shattered lives. At KLD, we have been able to help young people rebuild them, empower them to finish their education, and be successful to go on to a brighter future," she said.
KLD Youth Foundation, a Christian-based nonprofit, was founded in 2002 by Shaffer, minor-league baseball pitcher Kevin Deaton and his wife, Lindsey. Janet Shaffer is Lindsey's mother and Kevin's foster mother.
The group initially offered counseling and mentoring for Brevard at-risk youth. KLD later opened a K-12 private school for these students, which included foster kids, children with learning disabilities, and students from impoverished or broken homes.
Over the years, its Dancing with Brevard fundraiser has become a key event on the Space Coast, though it is now held in Orlando. Numerous prominent Brevard residents have served on KLD's board and danced in the event.
Last year's Dancing with Brevard extravaganza grossed about $450,000 in donations. KLD leaders hope to generate half a million dollars this time, and Tony Dovolani of ABC's "Dancing with the Stars" will headline the May 31 event at Rosen Shingle Creek Hotel in Orlando.
Dancing with Brevard generated $350,000 in 2012, more than $250,000 in 2010, nearly $200,000 in 2009, $150,000 in 2008, more than $184,000 in 2007 and more than $100,000 in 2006, according to FLORIDA TODAY archives.
However, the charity still owes a court judgment and attorney fees topping $250,000. A fired school principal, Merritt Island resident David Bradford, successfully sued for wrongful termination in 2007.
Bradford's lawyer, Douglas Beam of Melbourne, accuses KLD of "actively fleeing" seven garnishment attempts filed in court, and he plans to start deposing former and current board members to question them about the charity's finances.
"They're very clever at avoiding us. Meanwhile, we're perplexed — because they're raising large sums of money," Beam said.
Ivey said he does not believe Bradford's lawsuit is related to the FDLE investigation.
Steve Arthur, an FDLE spokesman, confirmed that his agency has opened an investigation into KLD activities.
"It is FDLE policy not to offer further information until the investigation is complete. We can give no estimate about when the investigation will be completed," Arthur said.
During an interview last month, Port Canaveral Police Chief Joe Hellebrand, KLD board president, declined comment on Bradford's lawsuit.
"We're not trying to be evasive. It's just that those are all legal issues. But as far as we're concerned, we are moving forward," Hellebrand said.
"We're going to continue to operate. We're going to continue to serve children. And we're going to continue to pay our debts," he said. "We have one mission: Helping children."
According to KLD's 2012 IRS Form 990, the most recent available, the charity reported $603,839 in total annual revenue and $535,144 in total annual expenses. The unpaid Bradford judgment represents a significant percentage of the group's budget.
BCSO is co-hosting the upcoming Dancing with Brevard, and Ivey will emcee the event.
"Dancing with Brevard is a very popular event. We co-host as many events with charitable organizations as we can," Ivey said.
KLD entered into a three-year lease with the family of State Rep. Steve Crisafulli, R-Merritt Island, a former board member, to develop the agriscience center, Shaffer said. About 100 hydroponic towers now contain crops at the site, a citrus market building just south of Church Road.
Contact Neale at 321-242-3638, rneale@floridatoday.com