Van Nostrand was reacting to a Dayton Daily News investigation that found a number of former Kettering Health executives and board members, along with some of their family members, received more than $3.2 million in improper “excess benefits” from the hospital from 2016 through 2022, according to hospital tax records.
Van Nostrand — a former executive secretary at Soin Medical Center who made complaints to the Ohio Attorney General’s Office about nepotism in the hospital system and hospital funds being used for improvements at former Kettering Health CEO Fred Manchur’s house, among other things — also wants to see Ohio Attorney General Dave Yost act on these reports.
“Mr. Attorney General, do something,” Van Nostrand said.
The Ohio Attorney General’s Office has continued to decline to comment on these allegations and on Kettering Health.
“Any potential for or existence of charitable investigations is confidential under (Ohio law),” AG’s office spokesman Dominic Binkley said when contacted by the Dayton Daily News.
Kettering Health tax filings say a forensic audit completed in 2023 found 46 people received “excess benefits” from the nonprofit hospital network. Recipients include former hospital executives, current and former senior leaders in the Seventh-day Adventist Church, prominent local business leaders and their families. Examples of such benefits include personal gifts, and travel and lodging in Hawaii and Europe, according to records obtained by this news outlet.
Kettering Health said in a previous statement to the Dayton Daily News the nonprofit hospital network is cooperating with the “Attorney General’s ongoing investigation.”
“It is important to note that multiple individuals listed in the tax filings did not realize they received funds inappropriately until they were notified at the conclusion of Kettering Health’s internal investigation,” the statement from Kettering Health reads.
In several instances, people were led to believe these were legitimate business activities or acceptable gifts, according to Kettering Health, which added those people “had no reason to believe they were not appropriate.”
“However, the internal investigation determined that some funds were misused, clearly falling outside of the stewardship principles of a not-for-profit organization. We are thankful that the vast majority of individuals chose to repay the funds back to Kettering Health,” Kettering Health’s statement reads.
The Manchurs
Van Nostrand says there’s still more to uncover regarding Fred Manchur — who retired as CEO of Kettering Health in 2022 — particularly in regard to Manchur’s home.
“Everybody knows it,” Van Nostrand said.
Manchur and his wife, Mary Kaye Manchur, received nearly $1.5 million in “excess benefits” from the hospital network, according to tax filings. Unlike most people who reportedly received improper benefits, tax records indicate they have not paid the money back. The Manchurs could not be reached for comment.
Records obtained by the Dayton Daily News indicate decorations at the Manchurs’ home was among the expenditures flagged by the hospital network as improper. Also, a 2023 investigation by the Dayton Daily News raised questions about the hospital’s role in buying and repairing the Manchurs’ home near Kettering Health Main Campus.
The Manchurs still own the brick, Colonial-style home that is more than 15,000 square feet, according to the auditor’s office, which estimates the home is now valued at about $2.5 million.
“It’s just frustrating that the statute of limitations is probably going to run out,” Van Nostrand said.
In Ohio, the statute of limitations for misuse of nonprofit funds generally falls under misappropriation or general fraud statutes, often four years from discovery, according to the Ohio Revised Code. Certain circumstances can extend this or trigger other rules.
For criminal charges, the statute of limitations varies depending on the alleged offense with some having no time limitations. In general, the statute of limitations is six years for a felony offense, two years for most misdemeanors and six months for a minor misdemeanor.
“It’s just disappointing that no action has been taken by the AG (attorney general),” Van Nostrand said.
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