AG Orders Closure of Youth Charities After Funds Raised by Children Never Reached Programs

January 28, 2026

Following a multistate investigation, two nonprofit organizations—Maryland Youth Club of America Inc. and Virginia Youth Club of America Inc. —have been permanently dissolved after authorities determined they exploited children from low-income areas while defrauding donors.

Who is affected

Middle and high school students from low-income communities, including neighborhoods in Wards 7 and 8 of D.C. (at least 100 District children identified)
Donors and consumers in the D.C., Maryland, and Virginia (DMV) region who purchased candy believing they were supporting at-risk youth
Maryland Youth Club of America Inc. and Virginia Youth Club of America Inc. (both organizations dissolved)
Jule Huston, founder and president (permanently barred from charitable activities)
Officers, directors, agents, and employees associated with both organizations (permanently barred from doing business in D.C.)

What action is being taken

Both nonprofit organizations are being dissolved
Huston and all associated individuals are being permanently barred from doing business in the District or seeking charitable donations from District residents
A $5,000 payment is being redirected to nonprofits serving at-risk youth in the region
Documentation of dissolution is being provided to District authorities

Why it matters

This case represents a significant breach of public trust that exploited vulnerable children twice—first by using them as unpaid door-to-door salespeople and second by diverting funds meant to help them. The enforcement action protects the integrity of the nonprofit sector by deterring fraudulent charitable operations that prey on both disadvantaged youth and generous donors. The multistate coordination demonstrates a commitment to holding bad actors accountable and preventing financial exploitation, particularly when it targets children from low-income communities while misleading well-intentioned contributors.

What's next

No explicit next steps stated in the article

Read full article from source: The Washington Informer