FARGO, N.D. (KFGO) – Fargo-based non-profit F5 project says it will make changes after making an agreement with the North Dakota Attorney General’s Office over self-dealing, illegal loan and conflict of interest allegations.
The organization gives people coming out of jail or prison job and housing resources.
Through tax forms, a Fargo Forum columnist found Chief Executive Officer and Founder Adam Martin and Chief Development Officer Scott College took a total of more than $89,000 in loans from the non-profit described as wage advances. That wasn’t authorized by the F5 Board and didn’t have a repayment schedule.
Adam Martin (courtesy F5 Project)
Attorney General Drew Wrigley said Martin and College’s company Marcoll Properties bought a Fargo building and leased to F5 for transitional housing for sex offenders illegally making them a more than $27,000 in profit.
“Nonprofits are not cookie jars and compliance with state law is not optional,” Wrigley said. “F5 Board and officers are on notice. This nonprofit can either comply or it can die.”
The loans were uncovered by a Fargo Forum columnist.
“F5 filed form 990 with the IRS. In that document, they disclosed these loans. It could have been something that could’ve been caught when reviewing that document,” Assistant Attorney General for the Consumer Protection and Antitrust Division Christopher Lindblad said.
Under the agreement, F5 needs to make quarterly compliance checks, document every board member’s vote, have annual board votes on its budget and members’ salaries. The organization could be dissolved or liquidated if it doesn’t follow the agreement.
F5 Project’s Board President said in a statement to KFGO the organization intends to continue operating, its services continue and the board takes the Attorney General’s concerns and their responsibilities under the agreement seriously.
“The matters that led to this agreement arose from past practices and decisions that predate my service on the Board. Based on what I know, I have seen no reason to believe there was malicious intent or a deliberate effort to misuse the organization for personal gain. That said, good intentions do not eliminate the need for strong governance, clear policies, appropriate internal controls, and accountability.
We are moving forward, we are committed to doing things the right way, and we remain 100% committed to our mission and the people we serve,” Evan Francen said.
The state has given F5 $11 million in grants. It has eight offices in North Dakota.
Wrigley said as part of the North Dakota Pardon Board in 2024 he voted in favor of recommending Martin for a pardon for his five felony convictions including terrorizing. Then Governor Doug Burgum granted the pardon before leaving office that year.
Wrigley said he hadn’t spoken to Martin before he testified before the Pardon Board or since.
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