Indiana Attorney General seeks to dissolve Noblesville nonprofit Third Phase

Indiana Attorney General Todd Rokita has filed a complaint in Hamilton County Superior Court to dissolve Third Phase, a Noblesville-based nonprofit. The move follows a multiyear investigation into allegations of wasted assets, operational failure and an unethical real estate deal. Third Phase, 15755 Allisonville Rd., was founded in 1980 as a homeless shelter. It since has expanded to include a food pantry and thrift store and to provide shelter to people leaving incarceration. Third Phase Director Sandra Van Den Berg did not respond to Current’s request for comment. According to the complaint, the Office of the Attorney General conducted the investigation following complaints from Noblesville residents. Noblesville resident Karly Alvey, a client advocate who previously worked with Third Phase residents, said the shelter lacked essential case management and programming. Alvey noted that resident treatment was inconsistent; contracts and rent costs varied per person — ranging from $25 weekly to $20 daily — and residents often were told to discard donated food. A former government employee, Alvey, who declined to identify which government office, reported her concerns to her former boss, who reported it to elected officials, including the deputy mayor, arguing that the shelter provided no path for residents to move forward. The OAG issued Civil Investigative Demands — administrative subpoenas issued by government agencies — seeking information regarding Third Phase’s operations, finances and compliance with nonprofit regulations. The OAG’s investigation revealed a lack of corporate structure at Third Phase. According to the complaint, the nonprofit held no board meetings between 2021 and 2025 and operated without a formal budget or cost-tracking. Furthermore, the organization reported having no volunteers and no employees — other than Van Den Berg — for at least five years. The investigation also reportedly revealed the organization’s food pantry services had declined, with Third Phase serving 1,000 households in 2021 and 2023 and only 740 in 2024. After receiving the Civil Investigative Demand, Third Phase retained Mario Massillamany of Massillamany, Jeter, and Carson LLP as legal representation. Board minutes show that during a June 24, 2025, meeting at Massillamany’s office, the board discussed the investigation and began planning to dissolve the nonprofit. The complaint also reported that Van Den Berg is attempting to sell the Noblesville property below market value. According to the complaint, the OAG received documents from Robert Miller, an attorney at Charitable Allies, which provides legal services for nonprofits and charities, in February 2026. The documents included an appraisal report for the Third Phase property, and a partially signed purchase agreement which indicated the property was going to be sold to MJS Holdings, whose sole member is Massillamany, for $350,000. The OAG reported that the appraised value of the property was “highly inconsistent” with recent tax appraisal values, saying the most recent tax assessment for 2026 valued the property at $1,236,900, with the land being valued at $287,800, and the improvements being valued at $949,100. The OAG also commissioned an independent property appraisal, which estimated the property value at $1,007,000. The complaint states the pending purchase agreement with Massillamany could constitute a conflict of interest and a violation of the Indiana Rules of Professional Conduct. Massillamany, who also is chair of the Hamilton County Republican Party, said calling the transaction a “low-ball” or “unethical deal” is false, and that he was going to use the property to create a sober living facility for men. He also said the OAG was invited to do a walk through and appraisal, but it never did. An office spokesperson for Rokita stated in an email that Massillamany didn’t inform the OAG he would hold the purchase until it was approved. “He is attempting to cover his tracks after being caught trying to personally and unethically benefit from the low-ball sale of his client’s $1 million asset for roughly one-third of its value,” the spokesperson said. Massillamany said he believes the lawsuit is the result of a “vendetta” Rokita has against him. “Instead of engaging on the merits, (Rokita) did what he always does — made a political decision because of my years of criticizing his self-serving conduct,” Massillamany said. The Rokita spokesperson said the OAG filed suit “specifically to stop the real estate sale from proceeding and to preserve the organization’s assets.” Related posts: No related posts. Share. Tumblr