A nonprofit organization operated by a Pender County commissioner is facing several allegations of financial misconduct, including misuse of taxpayer funds.
Kim McGahey and Phillip Cordeiro, at-large members of the Pender County Republican Party executive board, have each filed complaints with the N.C. Department of Justice against Mt. Calvary Center for Leadership Development, a nonprofit organization that lists Pender County Commissioner Jimmy Tate as its principal officer.
The complaints include allegations of fraud, misuse of grant funding and extortion by Mt. Calvary and Tate -- all of which the nonprofit has denied.
Mt. Calvary Center for Leadership Development is located in Wallace, North Carolina, though the nonprofit also has offices in Wilmington.
Both complaints culminate in a request for NCDOJ to open a formal investigation into Mt. Calvary.
Allegations of fraud
Cordeiro filed his complaint on July 1, while McGahey filed one complaint on July 8 and then an amended complaint on July 22.
Among the allegations is a claim that Mt. Calvary improperly received Medicaid reimbursement through the state's Healthy Opportunities Pilot program for services that were not provided. McGahey's complaint also details a separate allegation that Tate worked with a Pender County employee to threaten and coerce a business competitor.
McGahey's complaint alleges eight offenses in total, which range from fraud to code violations on Tate's property.
"The integration of these accounts transforms this inquiry from a matter of administrative negligence into a highly documented, multi-layered criminal enterprise that is defrauding the State of North Carolina, exploiting vulnerable Medicaid enrollees, and weaponizing county government offices for personal enrichment," McGahey's complaint states.
In addition to the fraud allegations, the complaints also point to Mt. Calvary's most recent IRS filing showing that the nonprofit spent $43,417 on program activities out of a reported $2.4 million in revenue, while Tate and his sister Mary Robinson, the nonprofit's executive director, each made over $180,000.
Mt. Calvary has denied any wrongdoing. Tate directed a request for comment to the nonprofit's legal representation, Kennedy Thompson with Thompson and Thompson Law.
"Mt. Calvary Center for Leadership Development received a copy of a citizen's complaint that was submitted to the North Carolina Department of Justice," Thompson said. "The allegations in the complaint are false, and they are easily dismissed. Mt. Calvary looks forward to continuing its positive work serving the community, and it will not be distracted by meritless, politically motivated allegations."
Anonymous accounts
Both complaints rely in part on anonymous sources.
In McGahey's complaint, one source is identified as a private citizen and another as a former employee of Mt. Calvary, though the sources are unnamed beyond being described as "whistleblowers." Several allegations in McGahey's complaint are based solely on accounts attributed to these sources.
NCDOJ confirmed that it had received Cordeiro and McGahey's complaints but could offer no more information as of Aug. 20.
"Because our investigation is ongoing, we're unable to comment further," Nazneen Ahmed, communications director for NCDOJ, said.
Thompson said that Mt. Calvary had submitted its response to NCDOJ and would share the information once the investigation has concluded.
Party lines
Alongside serving as executive board members for the Pender County Republican Party, both complainants have a history with elected office in the county.
Cordeiro was appointed to fill a vacancy on the Pender County Board of Education in 2023 before losing reelection in 2024, while McGahey ran for a seat on the same board and lost in 2026.
Explaining why he filed the complaint, McGahey said, "prior to the upcoming November election, the Pender County voters need to have confidence that their commissioners are not personally profiting from taxpayer funds."
McGahey stated that he did not speak for the party and only in his personal capacity as a citizen.
As of Aug. 20, the Pender County Republican Party had not responded to a request for comment.
Tate is up for reelection in the upcoming November election but will not face a Democratic challenger after winning his primary earlier this year.
Charlie Kingree is the Pender County and trending topics reporter for the StarNews. He can be reached at ckingree@usatodayco.com.
This article originally appeared on Wilmington StarNews: Pender County commissioner faces fraud claims over his nonprofit
