Attorney General’s office objects to Halle’s claim of $350K from sale of foundation building
The state Attorney General’s office has objected to William “Bill” Halle’s claim to $350,000 from the bankruptcy and sale of Grace Youth and Family Foundation, on the grounds he was illegally using assets from the nonprofit for years, according to court documents.
In a Dec. 22 filing, the state asked the United States Bankruptcy Court for the Western District of Pennsylvania to back its objection and keep the funds with the charitable foundation.
The foundation’s building in Butler was sold to the Nonprofit Development Corporation for $375,000 through bankruptcy court in October 2023.
Halle created the foundation in 1994 and initially filed for bankruptcy May 18, 2023, after civil and criminal actions were taken against him for alleged sexual contact with a then-17-year-old employee of the nonprofit, court documents indicate.
The criminal charges were dismissed in January, but Halle remains in Butler County prison serving a six-month jail sentence imposed in October 2023 for a parole violation.
The Attorney General’s office said in the federal court filings that it is conducting an investigation into Halle’s financial practices while he was head of the organization, saying he violated state’s Nonprofit Corporation Law.
According to law, property committed to charitable purposes of a nonprofit cannot be used for anything besides that for which it was donated.
The commonwealth’s objection to Halle’s claim states he “illegally accessed” the nonprofits assets for personal use during his time as its director.
“The Commonwealth has learned that Halle did not take a salary from (the foundation) for years — the apparent basis for his unsecured claim — but instead lived off of the assets of the corporation up to and including living in (the foundation’s) headquarters in addition to using (its) assets for personal expenses,” court documents read.
Halle’s $350,000 unsecured claim is itemized in the Grace Youth and Family Foundation’s plan of reorganization, filed in bankruptcy court Oct. 16, 2023. When the plan of reorganization was filed, the sale of the foundation’s building was not yet completed.
The sale was approved by the bankruptcy court on Feb. 5 and closed Monday, Feb. 25.
The state’s investigation is ongoing, and court documents show the investigation could result in a civil action against Halle for recovery of the funds he is accused of using illegally.
The state said in court documents the unsecured claim should remain part of the Grace Youth and Family Foundations assets.
According to court documents, a response to the objection is requested before March 14. A hearing on the objection is scheduled April 2.
Halle’s bankruptcy case is being handled by Fuchs Law Office in Carnegie. Efforts to reach a representative of the firm before publication were unsuccessful.
The criminal charges against Halle were dismissed Jan. 12 after Butler County Common Pleas Court Judge Timothy McCune ruled the prosecution failed to make the case that the teenager Halle was accused of having a relationship with was a “participant” in the nonprofit when the allegations surfaced.
The teenager’s employment contradicted a key element of each of the charges, which stated she was “a child under the age of 18 years of age who participates in a program or activity of the nonprofit association.”
The day charges were dismissed, Judge William Robinson ordered Halle to serve out the remainder of a six-month jail sentence in Butler County Prison, which was imposed on Halle in October 2023 for violating the terms of his parole.
Halle was jailed for sending both text messages and letters to the teen while under a no-contact order as part of a separate civil lawsuit. He remains in Butler County Prison.
