Women’s Shelter Sues 3 Foes of Its Relocation Plans

The Eli Home, a shelter for abused women and children that was honored by two U.S. Presidents, is seeking more than $19.5 million in general and punitive damages from three neighbors in a lawsuit charging they are scaring off donors by making false statements about the shelter.

The suit filed Tuesday in Orange County Superior Court alleges that Gene Secrest and two other neighbors, Jeannie Averill and Vicki Conway, have defamed the nonprofit organization by falsely accusing it of fraud and misusing publicly donated funds.

Along with other neighbors, the three have bitterly opposed the shelter’s efforts to relocate to their upscale Anaheim Hills community. The group continues to contest the Eli Home’s bid to renovate a building it bought at Santa Ana Canyon Road and Canyon Crest Drive, even though the City Council has approved conditional-use and building permits.

Eli Home officials have repeatedly denied any improprieties in the operation of the shelter.

“If we did nothing, then Secrest would continue going to all our big donors saying we are being investigated for fraud,” said Lori Galloway, executive director of the home. “We are defending ourselves from attack.”

Secrest, who has spearheaded opposition against the home, said his statements have been accurate.

“Apparently, the truth hurts,” said Secrest, who lives next door to the property. “When we actually go in and analyze the financial records, it will prove our statements.”

At a City Council meeting this year, Secrest accused the home’s operators of cheating previous landlords out of thousands of dollars in rent and owing the Internal Revenue Service more than $38,000 in tax liens.

“The public should have more respect for a thief that confronts you at gunpoint than a thief that steals your money behind the abused face of a child,” Secrest told the City Council.

The two other defendants could not be reached for comment.

Galloway concedes that the organization, which depends almost entirely on donations, has had difficulty in paying rent. But she said the home has always paid its bills.

Also, the Eli Home experienced a “temporary lull” in donations in the early 1990s, which made it unable to pay its taxes, Galloway said. But the home has a repayment plan with the IRS now, she said.

Galloway said Wednesday that recent statements by Secrest caused HomeAid Orange County to delay a contribution valued in excess of $200,000.

“That was an enormous loss for us,” Galloway said.

HomeAid, a nonprofit group that builds and renovates shelters for homeless people, was poised to help the Eli Home build its new facility, HomeAid’s executive director Mike Lennon confirmed Wednesday. But the recent swirl of controversy around the Eli Home prompted the organization to suspend those plans, Lennon said.

“Things need to get cleared up before we can move ahead,” Lennon said. “It was an extremely difficult decision to reach, but we don’t want to commit our resources to an organization that could go sideways.”

The decision will further delay the home’s opening of its shelter in Anaheim Hills, Galloway said. Originally, the home was projected to open last summer, but now officials can’t say when they might be able to operate again. The Eli Home currently operates three satellite facilities; the Anaheim Hills location would be its main office and shelter.

The Eli Home, which offers emergency shelter and counseling for abuse victims, wants to accommodate up to 22 people in the new shelter.

The shelter was recognized as a “Point of Light” by former President George Bush and received a merit citation from President Clinton last year. In its 13 years, the organization also has been honored by Disneyland, McDonnell Douglas and other organizations.