SCOOP: United Way of Rutherford County and its leader face lawsuit alleging misuse of funds, retaliation
Plaintiff says millions in grants went unused as officials engaged in 'smear campaign'
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RUTHERFORDTON, N.C. — United Way of Rutherford County and its executive director, Suzanne Porter, face a lawsuit alleging widespread financial mismanagement, fraudulent board representation, and retaliatory attacks against a mental health advocate who questioned their practices. The complaint, filed by Diane Krisanda’s attorney in Rutherford County Superior Court on February 7, 2025, outlines years of alleged misconduct and a pattern of intimidation designed to silence critics.
Krisanda, a longtime mental health advocate and the president of the National Alliance on Mental Illness (NAMI) South Mountains said she became a target of retaliation after requesting information about United Way's reported re-entry programs for incarcerated individuals.
"Rather than provide any such information and/or attempt to dispel the mounting concerns about misuse of government funds, Defendants engaged in a frantic, deceitful, and destructive series of attacks against anyone—including Plaintiff—Defendant Porter believed had any knowledge, concerns, and/or asked any questions about these issues," the lawsuit states.
Millions in Grants, No Services in Sight
According to the civil complaint, United Way of Rutherford County received millions of dollars in grants over the past two decades to provide essential services for individuals with mental illness and addiction issues. However, Krisanda and other community members allege these services were never available.
Sheriff Aaron Ellenburg, who took office in 2022, reportedly confirmed that "virtually no jail services were being provided by Defendants (and, in fact, were not being provided by anyone), and that there was no sign of any such programs or services being provided previously." This revelation, according to the lawsuit, raised further concerns about where the allocated funds had gone.
The lawsuit alleges that several officials and entities played a role in directing funds to United Way without sufficient transparency. These include Rutherford County Manager Steve Garrison, District Attorney Ted Bell, former Sheriff Chris Francis, and Partners Behavioral Health Management, the county’s LME/MCO (Local Management Entity/Managed Care Organization).
Fraudulent Representation and Cover-ups
Among the most striking allegations is the claim that Porter falsely listed prominent local officials, including Sheriff Ellenburg, as board members of United Way of Rutherford County without their knowledge.
"On or about April 18, 2024, Plaintiff learned that Defendant Porter had been fraudulently utilizing the names of several individuals and/or officials by listing them as members of the United Way of Rutherford board of directors when those individuals had never been asked, agreed, and/or been informed about their names being misused," the lawsuit said.
When confronted, United Way allegedly refused to provide financial records or details about the programs they claimed to offer. Instead, the organization allegedly launched a smear campaign against Krisanda and others demanding accountability.
"Defendants have attempted to destroy Plaintiff's career, reputation, and relationships, along with the careers, reputations, and relationships of the entities and individuals that Defendants appear to believe are Plaintiff's colleagues and associates," the complaint said.
Retaliation and Defamation
The lawsuit details a systematic effort by Porter and United Way to silence Krisanda and others who raised concerns. According to the complaint, Krisanda requested information about reentry programs at a January 26, 2024, meeting of the Rutherford County Community Collaborative, run by Partners LME/MCO, where Porter was Vice Chairman. Instead of responding, Porter allegedly engaged in efforts to discredit her.
After failing to provide any documentation regarding the alleged programs, Porter reportedly retained an attorney who sent Krisanda a letter refusing to share any information.
"It is often prudent, and even required, that certain details be restricted to only those with a specific need to have such information," the letter said in exhibit C.
The complaint further alleges that Porter spread false claims that Krisanda was "harassing" and "physically endangering" her.
"Because of [Krisanda's] antics, our LME/MCO temporarily shut down the Collaborative and canceled meetings. People stopped attending because [Krisanda] created such a hostile environment," Porter allegedly wrote in an email cited in the lawsuit.
Criminal Charges Dismissed Against Another Whistleblower
Krisanda was not the only person allegedly targeted for raising concerns about United Way’s finances. The lawsuit details an instance in which Porter filed criminal charges against another critic, Leslie Mooney Lewis, accusing her of harassment and defamation for questioning the organization's spending.
As I previously reported, those charges were later dismissed, but not before the accusations were used to further discredit those scrutinizing United Way’s financial practices.
"Through his assistance with Defendant Porter's efforts to harm Lewis, [District Attorney Ted] Bell and Defendants also harmed Plaintiff by claiming the false allegations against Lewis were done at the direction, and with the assistance, of Plaintiff," the complaint said.
Legal Claims and Potential Fallout
Krisanda is suing for libel, slander, tortious interference with economic relations, and violations of North Carolina’s Unfair and Deceptive Trade Practices Act. She is seeking damages exceeding $25,000 and a full accounting of the grants United Way of Rutherford County received.
The lawsuit claims that Porter not only misappropriated funds but also funneled money to personal accounts and used United Way’s resources to support her daughter, Jacki Porter, who was allegedly a fugitive at the time.
"Defendants have commandeered and monopolized virtually all federal, State, and local funding for mental health and/or substance abuse services by utilizing the defamatory and unlawful actions described herein to defame and attack others," the complaint alleges.
As of publication, United Way of Rutherford County has not issued a public response to the allegations. An answer is expected in early March since under state law a defense has 30 days to respond.
Stay with Cops & Congress for updates as this case unfolds.
Opinion & Analysis: Cops & Congress Commentary
Is This Racketeering? Why Would A Nonprofit Hide the Truth?
This case isn’t just about one nonprofit leader disliking another. “Defendants engaged in a systematic and prolonged pattern of racketeering actions in which Defendants attacked, defamed, and aggressively interfered with the relationships of other nonprofits and/or services providers that sought to provide assistance with the programs and services identified herein,” the complaint said.
When the United Way of Rutherford County is accused in a lawsuit of running what amounts to a racketeering operation, the term might sound extreme. But let’s break down what racketeering means in this context—and why transparency is the only way to prove otherwise.
Racketeering, at its core, is an organized effort to engage in fraudulent or deceptive practices for financial gain. Under federal law, the Racketeer Influenced and Corrupt Organizations (RICO) Act applies when an entity repeatedly engages in fraud, embezzlement, bribery, or other illegal activities as part of an ongoing scheme. The allegations in this lawsuit suggest a pattern that raises serious questions:
Where did the millions in grant money go? If funding was secured to provide mental health and reentry services, why does the community report that these services don’t exist?
Why retaliate against those who ask questions? If United Way of Rutherford County had functioning programs with measurable success, wouldn’t the easiest response be to show the results? Instead, as the lawsuit alleges, critics were threatened, harassed, and falsely accused of misconduct.
Who benefited? If the money didn’t go to providing mental health and addiction services, as intended, then where did it go?
If the Programs Exist, Prove It
The simplest way for United Way to put these allegations to rest is to open the books and show the data on their website. There have allegedly been funds available to help people find housing but at least one man experiencing homelessness was not given assistance, he exclusively told me in December. It’s not enough to say, “We have programs.” Where are the success stories? Where are the measurable results? Nonprofits exist to serve the public, not operate in secrecy.
Here’s what real transparency looks like to me:
Program Details – A clear list of services, eligibility criteria, and how community members can access them.
Outcome Reports – Metrics on how many people received help, what services they used, and what the long-term impact was.
Financial Accountability – Publicly available records showing how grants were spent, in line with their intended purposes.
The Public Deserves Answers
The essence of racketeering is deception—making promises, securing funding, and then diverting resources for personal or unauthorized use. If United Way wants to prove it is not engaging in such behavior, the solution is simple: Tell the public what these programs are, where they operate, and who has benefited.
Until then, the lawsuit’s allegations will stand as a serious warning about what happens when accountability is replaced with intimidation. In a community where mental health and addiction services are desperately needed, silence is not an option. Rutherford County consistently rates as one of the highest for opioid overdoses, according to state data. United Way of Rutherford County was awarded over $250k in opioid settlement funds.
Three Things I’m Watching Carefully as the Lawsuit Unfolds
Will United Way Finally Provide Proof of Programs?
If these mental health and reentry programs exist, we should see detailed records showing where the money went and how many people were served. So far, all we’ve seen is evasion and excuses. If there’s nothing to hide, why not release the reports?Will Officials Face Scrutiny for Their Role?
The lawsuit names Rutherford County officials, the district attorney, and even past sheriffs as being complicit in funneling money to United Way without oversight. If taxpayer and grant money were misused, how deep does the corruption go? And will there be any real accountability?Will Retaliation Against Whistleblowers Continue?
The allegations show a disturbing pattern: Anyone who asks questions gets attacked. Will we see more attempts to smear and silence critics, or will this lawsuit finally put an end to the intimidation? If the United Way of Rutherford County and its allies go after more people instead of providing answers, I believe that tells us everything we need to know.
I’ll be following every step of this case closely—stay with Cops & Congress for updates.
🏛️ All those mentioned are presumed innocent until proven guilty.
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The best thing that can come from this is to expose the corruption in this county, prosecute all those who played a part in the corruption to the fullest extent of the law, and permanently shut down United Way of Rutherford County. Then we can begin to heal.
I am working on a very interesting case. Lack of transparency and selective law enforcement is my concern. I am grateful for what Annie is doing. She is the tip of the spear. We all need to take action. Stand with her. Support her.