New York Attorney General Letitia James filed a lawsuit Tuesday against far-right website VDare and its founder Peter Brimelow. The suit alleges they fraudulently misused charitable donations to purchase a $1.4 million medieval-style castle in West Virginia.
James claims Brimelow and his wife Lydia diverted funds from the VDare Foundation, a tax-exempt nonprofit, for personal use. This allegedly included maintenance costs for their private residence at the Berkeley Springs Castle property.
“Charity executives cannot use their organizations as personal piggy banks,” James said during a press conference in Manhattan. “The Brimelows exploited a nonprofit structure to fund their castle lifestyle while promoting hateful, extremist views.”
The 132-page complaint details how the Brimelows allegedly purchased the castle as their primary residence in 2018, yet claimed it would serve as a conference center. Financial records show minimal public usage while substantial foundation resources covered renovations, utilities, and security systems.
The Southern Poverty Law Center designates VDare as a hate group, citing its promotion of white nationalist ideologies. Despite this controversial status, the organization maintained tax-exempt status, allowing it to collect over $16 million in donations between 2016 and 2022.
Former VDare Foundation board member John Derbyshire expressed concern about the organization’s financial practices. “There was always a troubling lack of transparency about how donor funds were being allocated,” Derbyshire told me during a phone interview. “Board members who raised questions were quickly marginalized.”
Financial experts note this case highlights growing scrutiny of extremist organizations using nonprofit structures. “We’ve seen an alarming trend of hate groups exploiting charitable status,” said Dr. Sarah Kendzior, author of “Hiding in Plain Sight.” “This provides them tax advantages while shielding their financial operations from public view.”
The lawsuit seeks to dissolve the VDare Foundation, recover misappropriated funds, and ban the Brimelows from future nonprofit leadership positions in New York. The Attorney General’s office provided extensive documentation, including internal emails discussing how to “get the castle paid for” through the foundation.
Brimelow, through his attorney, denies all allegations. “This is politically motivated harassment against conservative voices,” said defense counsel William Johnson. “The Berkeley Springs property serves legitimate organizational purposes, and all expenses were properly approved.”
Tax records obtained during the investigation show the VDare Foundation reported over $4.3 million in assets for 2022, while spending just $126,000 on actual program activities. Meanwhile, executive compensation and property maintenance consumed nearly $1.8 million.
Congressional watchdogs have previously questioned the IRS about its oversight of extremist organizations claiming charitable status. Rep. Jamie Raskin noted in a House Oversight Committee hearing last year that “nonprofit status should not be a shield for hate group financing.”
When I visited Berkeley Springs last month, local residents expressed mixed feelings about the castle’s current ownership. “That property is part of our town’s history,” said longtime resident Margaret Simmons. “It’s disappointing to see it associated with controversy instead of being a community asset.”
The Berkeley Springs Castle, built in 1885 by businessman Samuel Taylor Suit, represents a unique piece of American architectural history. Its stone towers and medieval design make it a notable landmark in the small West Virginia town.
Legal experts suggest this case could set important precedents for nonprofit accountability. “The AG’s office has assembled substantial evidence of what appears to be systematic financial mismanagement,” said Columbia Law School professor Elizabeth Sanders. “This could reshape how we regulate politically-oriented organizations claiming tax exemptions.”
The lawsuit also names three board members as defendants, arguing they failed in their fiduciary duties by rubber-stamping improper expenditures. Court documents reveal that one board member received a $75,000 “consulting fee” shortly after approving the castle purchase.
Nonprofit governance specialists point out that this case highlights the importance of board independence. “Effective boards must maintain arm’s-length oversight of executive decisions,” explained Marcus Johnson of the Nonprofit Governance Institute. “When that boundary blurs, misuse of charitable assets becomes far more likely.”
A court date has been set for October 15th, with preliminary hearings expected to address the foundation’s request to dismiss the case. Whatever the outcome, this lawsuit represents an important test case in the growing effort to ensure charitable organizations fulfill their intended purposes rather than serving as vehicles for personal enrichment.
