Probe into nonprofit run by NC lieutenant governor's wife enters new phase in government, on campaign trail

The wife of North Carolina Lt. Gov. Mark Robinson has asked state health officials to take a closer look at the state investigation that accused her government-funded nonprofit of improper billing. The state says the organization must reimburse at least $132,000.

2024-08-15

Yolanda Hill, the second lady of the state, ran Balanced Nutrition, a Guilford County nonprofit organization that helped child care centers get federal grants for food, for close to a decade. She shut it down this year amid a North Carolina Department of Health and Human Services investigation that wrapped up last month.

Balanced Nutrition is accused of inflating its expenses by submitting the same receipts multiple times, submitting claims for more money than receipts show, and filing claims for at least one child care center that allegedly never asked for — or received — the money Hill’s group took on its behalf.

It was allowed to take a portion of the money it received in grants and use it to fund salaries for its employees, including Hill and other family members who worked there. In addition to allegations of inflating what it billed the government, the group is also accused of breaking state nonprofit rules that prohibit hiring family members without permission.

It’s the latest in a string of legal problems for the Robinson family, who have a history of not paying taxes, not paying rent and filing for bankruptcy, in addition to other financial issues.

That history didn’t harm Robinson’s campaign for governor this spring, when he won the Republican Party primary with almost twice as many votes as his two challengers combined. Rather, he used his background as a way to connect with everyday North Carolinians, saying he understands what it’s like to struggle.

But polls show him struggling in the general election against his Democratic opponent, Attorney General Josh Stein. Multiple polls this summer have shown Robinson running 7 to 8 percentage points behind Republican presidential candidate Donald Trump.

In a speech in Asheville Wednesday, Robinson called the Balanced Nutrition investigation a baseless, politically motivated effort to hurt his campaign. He sought to blame not Democratic Gov. Roy Cooper, who oversees DHHS, but rather Stein.

“My opponent’s wife is deeply embedded into the agency that holds sway over my wife’s business. See what we see here, with the weaponization of government?” Robinson told the crowd ahead of a speech by Trump — who has also claimed political motivations behind various civil and criminal investigations targeting him and his business interests.

“This attack is ridiculous and completely false,” Stein told WRAL.

State records show Anna Stein isn’t employed by DHHS but does work in the office. She is employed by the state human resources office as a part-time, temporary worker. DHHS confirmed she does work for it in that temporary position, logging 10 or fewer hours per week at the department. She has no role in the Balanced Nutrition investigation or the broader division that handles such investigations, DHHS spokeswoman Summer Tonizzo said, and primarily works on public health issues regarding tobacco use and healthy eating. She's scheduled to end her employment next month.

Josh Stein’s campaign spokeswoman, Kate Frauenfelder, called Robinson’s accusations against Stein’s wife “shameful,” adding that they’re “exactly what you’d expect from someone doing everything in his power to avoid responsibility for a dangerous daycare and allegations of six-figure fraud.”

Robinson and Hill ran a Greensboro child care center that was given multiple violations from state inspectors in the early 2000s — now the subject of an ad by the Stein campaign that Robinson’s campaign has hired lawyers to try to get taken off the airwaves. They no longer operate the child care business, but Hill did continue running Balanced Nutrition until recently.

The $132,000 in payments flagged by investigators came from the federal government. The state is handling the investigation, as is dictated by law. In late July DHHS ended the investigation and requested Balanced Nutrition either pay back the money, appeal its findings or request an informal conference to get further details.

The group recently changed lawyers. Its new lawyers wrote to DHHS last week requesting an informal conference. They didn’t respond to a request for comment from WRAL but told DHHS: “We are working diligently to familiarize ourselves with the relevant details.”

A DHHS spokeswoman confirmed that the department received the request for a meeting but hasn’t yet scheduled the conference. Balanced Nutrition asked for it to be held on Sept. 16 or later.

Following that meeting, Balanced Nutrition would need to decide whether to appeal the findings against it. That could stretch the case on for months. Even if it doesn’t appeal, it could still stretch on for months. According to DHHS, if a group that’s deemed to owe money doesn’t pay up, it will then be sent a letter and given another 30 days. If it still hasn’t paid at the end of that period, it will be sent another letter and given another 30 days — with interest added to what’s due. If it still hasn’t paid by the end of that period, it will then be sent to a collections agency.

If Robinson wins the race for governor in November, he would also take over the Department of Health and Human Resources and could appoint the leadership who would oversee the Balanced Nutrition investigation, if it’s still ongoing.