Epilepsy Agency Asks Bankruptcy as Probe Goes On

The nonprofit Epilepsy Foundation of Northern California has filed for bankruptcy after a yearlong investigation of alleged misuse of funds.

Board member John Schafer said the group, which was about $100,000 in debt at the end of 1986 despite raising $760,000, has about $1,000 left in its bank account.

The decision to file for bankruptcy Wednesday comes one year after the foundation closed its doors. “We really hoped to keep the organization going and that’s why it’s been a year now, and we’ve done everything we can think of in the meantime,” said board member Brett Hobde.

Established to educate the public about epilepsy and help people with the disease, the foundation is under investigation by the Sacramento County district attorney and the state attorney general’s office.

Investigators have said that hundreds of thousands of dollars in charitable contributions raised for the foundation may be missing.

Former director Paul Johnston told the district attorney’s staff that he transferred some funds to an account for a new corporation formed in Las Vegas. He said the donations were spent on overhead expenses and salaries.