Attorney General Bonta Announces Lawsuit over $3.8 Million Fraudulent Charity Scheme at San Diego Sports Venues

Sham charity operation exploited fundraising opportunities at Petco Park and Snapdragon Stadium

OAKLAND — California Attorney General Rob Bonta today announced a lawsuit against six individuals and three sham charities for diverting charitable funds and profiting from fundraising opportunities at Petco Park and Snapdragon Stadium in San Diego. The fundraising programs allowed charities to volunteer at stadium concession stands and receive 10% to 12% of the sales proceeds for their charitable mission, but Martin J. Rebollo, Noly H. Ilarde, and four other co-conspirators used fake charities, named C V Fast Patch, Chula Vista Fast Patch Inc, and Chula Vista Fast Pitch, to defraud the public and steal at least $3.8 million in charitable funds. The complaint, filed in the San Diego County Superior Court, charges the individuals with conspiracy, unjust enrichment, fraud, failure to account, and other violations. 

“Charity is supposed to showcase the best parts of our humanity, but unfortunately, these actions showcase some of the worst,” said Attorney General Bonta. “We are holding these individuals accountable for their malicious and reprehensible conduct. Today’s announcement should serve as a reminder: Those who try to steal funds intended for charity will only become rich in consequences.” 

Petco Park and Snapdragon Stadium operate fundraising programs designed to support charitable causes by allowing local charities to bring volunteers to staff some of the venues’ concession stands and kiosks. As a condition of participation in the program, charities must agree to use uncompensated volunteers and to use the funds to support their charitable mission. These charities typically include youth sports teams, cheer teams, and church groups that receive approximately 10% to 12% of the sales proceeds from the concession stands operated by their uncompensated volunteers. Rebollo and Ilarde created three sham charities that took advantage of these programs, defrauded the public, and diverted at least $3.8 million in charitable assets.

The complaint alleges that between 2014 and 2023, Rebollo and Ilarde used their primary sham charity — C V Fast Patch — to pose as a legitimate charity but never engaged in legitimate charitable activities. As to the other defendants, Melinda Avestruz, Dolores M. Rodriguez, Grace I. Gonzalez, and Hugo G. Munoz Flores, the complaint alleges that each aided and abetted in the scheme, both as paid volunteers and co-conspirators who helped divert funds through their personal bank accounts. By 2023, the organization was bringing in approximately 50 to 100 volunteers and operating 10 to 20 concession stands each day. Rebollo and Ilarde wrongfully paid volunteers between $50 and $120 a day, and kept the remaining funds, which could be as high as $80,000 a week from each venue. The funds were never used for charitable purposes, but were instead kept for personal gain, including gambling at casinos, dining at restaurants, and obtaining tickets for events and travel, among other personal uses. 

The Attorney General is charged with the general supervision of nonprofit public benefit corporations and all entities and individuals who solicit, obtain, hold, or control property in trust for charitable purposes in California. Under Government Code section 12580 et seq., the Attorney General may investigate and bring legal actions against charities and fundraisers that misuse charitable assets or engage in fraudulent fundraising practices.