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Oregon Charity Founder Indicted for Allegedly Stealing $837K in Disaster Relief Funds to Gamble

By jili tutorial · September 6, 2026

Oregon Charity Founder Indicted for Allegedly Stealing $837K in Disaster Relief Funds to Gamble

Overview of the Case

A former Oregon nonprofit leader has been indicted on charges that he misappropriated hundreds of thousands of dollars in disaster relief grants—money intended to help victims of tornadoes, floods, and wildfires—and instead used the funds to finance a lifestyle that included frequent casino trips, strip club visits, and a family vacation to Disneyland.

State prosecutors in Oregon allege that Marcus Brooks, founder and executive director of the now-defunct Cascade Relief Team, stole over $837,000 from the charity he led. The Oregon Department of Justice announced that a grand jury in Lincoln County handed down the indictment. Brooks has been charged with two counts of aggravated theft in the first degree. As with all criminal proceedings, he is presumed innocent until proven guilty in a court of law.

The Cascade Relief Team’s website has been taken down, but a now-dormant Instagram account described the organization as “a non-profit crisis-driven organization that is dedicated to empowering communities to come together in the midst of devastation.” Oregon Attorney General Dan Rayfield offered a starkly different characterization: “Cascade Relief was primarily founded to empower Brooks’ personal banking accounts.”

The Allegations in Detail

Red Cross Grant for Tornado Shelters

In 2021, the American Red Cross awarded Cascade Relief Team a $326,000 grant specifically earmarked for building tornado shelters in Kentucky. The grant came in the wake of the deadliest tornado outbreak in Kentucky’s history. Over two days in December 2021, extreme weather killed 74 people and caused more than $4 billion in damage. Thousands of homes and buildings were severely damaged or reduced to rubble.

Brooks accepted the money on the promise that his organization would rush to Kentucky to assist in recovery and shelter construction. Instead, according to the Oregon Department of Justice, Brooks diverted the funds for personal use, including:

Oregon State Fire Marshal Grant for Wildfire Cleanup

Brooks was already facing a civil lawsuit when the criminal indictment was issued. That earlier legal action stemmed from a separate grant: in 2020, the Oregon State Fire Marshal awarded Cascade Relief Team a $100,000 grant to assist with wildfire debris cleanup and tree removal after devastating wildfires in the state.

Prosecutors allege that Brooks’ charity never completed the work. Instead, at least $6,000 of that grant money was spent at casinos.

Luxury Spending and Gambling Trips

Financial investigators traced the stolen funds to a range of personal indulgences. Along with the casino trips, Brooks allegedly used disaster relief money at strip clubs and for a family vacation to Disneyland. The indictment details a pattern of behavior that prosecutors describe as preying on vulnerable disaster victims. Attorney General Rayfield said, “This man preyed on people at the worst moment of their lives. He wore the badge of a disaster relief leader while gambling away the money meant to rebuild people’s homes and give them a new start.”

How the Scheme Was Exposed

Whistleblowers from Within

The alleged theft came to light thanks to former employees of Cascade Relief Team. According to the Central Oregon Daily News, staff members who had been laid off tipped off state authorities. These ex-staffers wrote to the Oregon Department of Justice, reporting their suspicions that Brooks had his hand in the charity’s bank accounts.

Their whistleblowing triggered an investigation that led to the criminal charges. The case highlights the crucial role that internal whistleblowers can play in uncovering nonprofit fraud—especially in organizations that lack robust oversight.

Brooks faces two counts of aggravated theft in the first degree. If convicted on each count, he could be sentenced to up to 10 years in prison and fined up to $250,000, plus be required to pay full restitution to the victims and grant-making organizations.

The Oregon Department of Justice has not yet announced a trial date. The case will be prosecuted by the Lincoln County District Attorney’s Office in coordination with the state’s criminal division.

Broader Context: Disaster Relief Fraud

A Recurring Problem

The Brooks case is far from isolated. Disaster relief fraud—where individuals or organizations siphon funds meant for emergency response and recovery—occurs after nearly every major natural disaster. The Federal Emergency Management Agency (FEMA) and the Government Accountability Office (GAO) have repeatedly warned about the vulnerability of disaster aid programs to fraud, waste, and abuse.

Common patterns include:

The American Red Cross, the grantor in the Kentucky tornado case, has itself faced scrutiny in the past over how it allocates disaster funds. However, in this instance, the Red Cross was the victim of the alleged fraud, not the perpetrator.

How Nonprofits Can Protect Themselves

For legitimate nonprofit organizations, the Brooks indictment offers several cautionary lessons:

  1. Strong internal controls – Separate financial duties among multiple people, require dual signatures on large expenses, and conduct regular audits.
  2. Board oversight – An active, independent board of directors should review financial statements and question unusual transactions.
  3. Whistleblower policies – Provide a safe, anonymous way for employees to report suspected fraud.
  4. Grant accountability – Document how grant funds are spent, and be prepared to report back to funders with receipts and progress updates.

How Donors Can Verify Charities

Donors who want to avoid supporting fraudulent operations can take these steps:

Conclusion

The indictment of Marcus Brooks and the demise of Cascade Relief Team serve as a stark reminder that even organizations created to help the most vulnerable can be exploited by those in charge. The case underscores the importance of transparency, oversight, and the courage of whistleblowers in protecting disaster relief funds.

As the legal process unfolds, the victims of the Kentucky tornadoes and Oregon wildfires are left waiting for the aid they were promised—aid that instead went to casino floors and theme parks.