The Minnesota Attorney General’s Office announced on May 5 that it has filed a lawsuit against Les Jolies School of Dance, Real Believers Faith Center, their founders Sharon and Larry Cook, and other officers for alleged violations of state nonprofit law. The suit claims the leaders misused more than $2 million in charitable assets to fund personal expenses such as luxury travel and designer goods.
The case is significant because it alleges that individuals responsible for managing charitable organizations diverted resources meant to serve the community for their own benefit. The Attorney General’s Office said this undermines public trust in nonprofits and could harm those who rely on such organizations.
According to the lawsuit, more than $1.3 million from Real Believers Faith Center was allegedly misused between February 2018 and October 2024. Investigators found that approximately 91% of transactions from an account controlled by Larry Cook had no identified nonprofit purpose, while about half of transactions from an account controlled by Sharon Cook were similarly unexplained. Examples cited include large cash withdrawals, payments for international hotels, transfers to family members, and even payment of parking fines. When questioned about these expenses during depositions, both Cooks invoked their Fifth Amendment right against self-incrimination.
Les Jolies School of Dance is also accused of having nearly $800,000 in charitable funds misused from April 2018 through June 2024. The complaint details payments made via money-transfer apps to the Cooks’ family members as well as purchases at luxury retailers and travel companies. The lawsuit further alleges that Sharon Cook created LJP Costumes LLC as a conduit for funneling nonprofit funds into personal accounts.
In addition to misuse of funds, the Attorney General’s Office claims the Cooks took out over $650,000 in loans using charity properties as collateral without board approval and used nonprofit resources to support their private business ventures—including operating a gas station where profits went directly to a company they owned rather than back into the charity.
After learning about potential obstruction efforts by defendants—including dissolving one charity without notice and selling then repurchasing church property—the Attorney General’s Office filed its complaint under seal on April 2 with an immediate request for a temporary restraining order (TRO) granted on April 15. This TRO aims to protect any remaining assets from being diverted or concealed while legal proceedings continue.
Under Minnesota law, nonprofit executives have fiduciary duties requiring them to act in the best interest of their organizations above personal gain; violations can result in civil enforcement actions but not criminal charges through this office alone. The public may submit complaints regarding suspected misconduct by nonprofit leaders using forms available on the Attorney General’s website or by calling provided phone numbers.