State investigation uncovers improper use of public funds by charitable organization in New Orleans, specifically regarding bingo operations.
Louisiana State Funds Misused by NAAAED for Bingo Events and Charitable Gaming
The National Association for African American Economic Development (NAAAED) has come under scrutiny for misusing nearly half of the $400,000 in state funds it received in March 2024. The Louisiana Legislative Auditor's Office revealed this in an investigative audit released in July 2025.
The audit found that NAAAED used public funds to rent a facility for bingo events at rates up to $1,000 per day, pay for electrical upgrades, and open multiple gaming-related bank accounts. The association failed to maintain and submit required supporting documentation to the state treasury, which may have constituted a violation of its Cooperative Endeavor Agreement (CEA) with the state and state law.
Specifically, $199,568 was diverted to support bingo nights and other charitable gaming-related expenses, contrary to the intended use of the funds for occupational training, job placement, and eviction prevention in House District 99 of New Orleans East.
NAAAED's CEO, Myron Lee, acknowledged the findings, thanked the auditors, and pledged to implement reforms such as hiring a CPA and general counsel, improving accounting practices, and strengthening board oversight. The Louisiana Legislative Auditor’s Office recommended that NAAAED seek legal advice on repaying the misspent funds and institute stronger internal controls going forward.
Importantly, the matter has been referred to prosecutors in Orleans and East Baton Rouge parishes, indicating potential legal consequences for the misuse of state funds.
The audit did not provide details about the $185,000 disbursed to six subrecipients, including churches and community organizations, or the failure to monitor those partners or document the services delivered. NAAAED's CEO Myron Lee and board member Ernest Johnson admitted using state funds for bingo nights, stating they believed it was aligned with the CEA's workforce development goals, but attendance and revenue were lower than expected.
Treasury officials stated they were never provided documentation to justify NAAAED's spending. In a written response, CEO Myron Lee pledged reforms, including hiring a CPA, general counsel, improving ledger reconciliation, and bringing on new board members with experience in public contracting.
The report also raised questions about NAAAED's tax compliance, as it allegedly failed to issue 1099 forms to at least 29 individuals and failed to file required quarterly charitable gaming reports for the second half of the year. The media production company, a subrecipient of NAAAED, was awarded $115,000 for a movie production, intern training, and job shadowing, but auditors found no evidence of training provided.
As of January 2025, NAAAED's bank accounts held just $938, and the association had not submitted any of the required quarterly progress or cost reports by March 2025, a year after receiving funds. The funds were intended for occupational training, job placement, and eviction prevention in House District 99.
[1] Source: Louisiana Legislative Auditor's Office Investigative Audit Report, July 2025.
- The misappropriation of Louisiana state funds by the National Association for African American Economic Development (NAAAED) for bingo events and charitable gaming activities, as revealed in the July 2025 investigative audit by the Louisiana Legislative Auditor's Office, has brought the association under scrutiny in the realm of general-news and crime-and-justice.
- The potential legal consequences of the NAAAED's misuse of state funds, as indicated by the referral to prosecutors in Orleans and East Baton Rouge parishes, have raised questions about the association's business and financial practices, further spreading concerns in the general-news and crime-and-justice domains.
