State alleges motorcycle ride fundraiser pocketed money meant to support Minnesota veterans charity

A motorcycle ride from the Twin Cities to South Dakota sought to raise money for a Minnesota veterans charity, but organizers pocketed the money instead, state investigators allege.

In a Ramsey County District Court civil settlement reached last month with the state Attorney General’s Office, Tyrone Creer, 49, and Alice Arenson, 58, agreed to pay hundreds of dollars they owe the Magnus Veterans Foundation in Dayton for the 2022 fundraiser.

According to court documents, the Minneapolis residents started Ride to The Chip in 2022 as part of their Livin’ Live Music company, organizing a motorcycle ride from the Twin Cities to the Buffalo Chip Campground in South Dakota. The Magnus Veterans Foundation paid a down payment of $3,800 to Ride to The Chip, which agreed to take no more than 23% of the event proceeds, despite advertising to riders that 100% of the money would go to charity.

The event raised $3,125, so according to its contract, Ride to The Chip owed the charity $2,406. Instead, Assistant Attorney General Karthik Raman alleges that Creer and Arenson kept the money, including reimbursing riders for their gas and meals. They also didn’t register with the state as required by professional fundraisers.

“It is unacceptable for a fundraiser hired by a charity to keep money they specifically raised for that charity,” Attorney General Keith Ellison said in a statement.

The Attorney General’s Office regulates violations to charitable giving laws. After the office started investigating, the couple gave $1,958 to the veterans group. As part of the settlement, they agreed to pay Magnus Veterans Foundation its $3,800 deposit and the remaining $447 owed from the fundraiser.

As part of the settlement agreement, Creer and Arenson didn’t admit or deny the allegations. They couldn’t be reached for comment.