Maryland and Virginia Youth Clubs Shut Down Amid Allegations of Misused Funds

BALTIMORE, MD – Attorney General Anthony G. Brown and Secretary of State Susan C. Lee have announced the permanent closure of two deceptive nonprofit organizations, Maryland Youth Club of America, Inc. and Virginia Youth Club of America, Inc. The founder, Jule Huston, along with other officers and directors, are now prohibited from operating charities or soliciting donations in Maryland. These actions stem from settlements reached in Virginia and the District of Columbia, which also ban Huston from forming charities, soliciting contributions, or holding leadership positions in charitable organizations within those jurisdictions.

The investigation, a collaborative effort between the Attorneys General of Maryland, the District of Columbia, and Virginia, alongside the Maryland Secretary of State, revealed that both Maryland Youth Club and Virginia Youth Club allegedly recruited children to sell candy door-to-door. The organizations reportedly claimed that proceeds from these sales would fund scholarships and enrichment programs for at-risk youth. However, the investigation found that the funds were instead illicitly used by the individuals managing the programs for their personal gain. This situation bears resemblance to DMV Futures, Inc., another Maryland-based organization that was previously barred from soliciting donations by Secretary Lee last year and whose appeal to overturn that order was denied.

Maryland Youth Club was incorporated in Maryland and registered to solicit charitable contributions within the state, while Virginia Youth Club, incorporated in Virginia, also held registration to solicit in Maryland. Jule Huston, a resident of New York, served as the president of both entities. Both organizations purportedly aimed to support youth programs and activities designed to “rescue teens from challenging environments before they become statistics” through various benefits including scholarships and trips. Middle and high school-aged children were reportedly recruited and transported to neighborhoods across Maryland, Virginia, and the District of Columbia to sell candy. They were instructed to inform potential donors that their purchases would contribute to charitable youth activities.

The joint investigation uncovered evidence suggesting that Maryland Youth Club and Virginia Youth Club made misrepresentations about their charitable programs. The organizations reportedly generated over $857,000 in gross sales by promising potential donors that children involved in the sales would receive part-time employment, weekly wages, free trips, activities, and prizes. However, the investigation found a lack of consistent evidence that children were regularly paid for their solicitation efforts or that they received many of the promised benefits. Furthermore, the organizations are accused of misleading consumers by falsely asserting that contributions would directly support at-risk youth.

A significant portion of the investigation focused on Jule Huston’s alleged diversion of charitable funds. Between 2022 and 2023, Huston is reported to have transferred over $23,000 from Maryland Youth Club’s bank account to his personal CashApp account, to his mother, to a New York-based corporation he established, and to an officer of Virginia Youth Club. Additionally, Maryland Youth Club reportedly incurred substantial expenses in New York, Huston’s place of residence, at various businesses including gas stations, Petco, AutoZone, and Walmart. The whereabouts of a large sum of funds collected by both organizations remain unaccounted for. The investigation also revealed that Huston allegedly intentionally destroyed financial records for Maryland Youth Club for the years 2020 through 2023.

Under the terms of the settlement, Maryland Youth Club and Virginia Youth Club will be permanently dissolved. These organizations ceased operations during the course of the multistate investigation, and Huston is now required to formally dissolve them in their respective states and provide documentation of this dissolution to Maryland authorities. Huston and other leaders of the organizations are permanently barred from soliciting charitable contributions or operating a nonprofit in Maryland. Huston specifically faces additional prohibitions, including being barred from serving in any capacity related to the collection or handling of charitable contributions, engaging in any charitable solicitation in Maryland, or acting as a consultant or advisor to a nonprofit. As part of the settlement, Maryland Youth Club, Virginia Youth Club, and Huston are also required to make a $5,000 payment, which will be distributed to local nonprofits that serve at-risk youth.

Article by Mel Anara, based upon information from the Maryland Attorney General’s Office.

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