BUCKHANNON — In an exclusive Mountaineer Journal investigative report, we have evidence suggesting that Matthew Kerner used funds from Opportunity House, Inc. to subsidize material for his 2018 House of Delegates campaign.
On February 28, 2018, Kerner was billed for 200 political mailers at an in-state business, costing $82.73. The mailers were produced with the disclaimer Paid for by the Committee to Elect Matthew Kerner. To pay for the mailers, Kerner used a check from the Opportunity House, Inc., linked to the non-profit organization’s bank account at Progressive Bank (now, Community Bank) in Buckhannon, WV.
Opportunity House, Inc. is a 501 (c) (3) non-profit corporation. Under the Internal Revenue Code, “all 501(c)(3) organizations are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. Contributions to political campaign funds or public statements of position (verbal or written) made on behalf of the organization in favor of or in opposition to any candidate for public office clearly violate the prohibition against political campaign activity. Violating this prohibition may result in denial or revocation of tax-exempt status and the imposition of certain excise taxes.”
The Opportunity House, Inc. has also received federal and state funding. Therefore, the majority of the funds in the Opportunity House, Inc. bank accounts were garnered through tax-payer funded grants.
Furthermore, Kerner did not list the contribution and itemized expenditure in his annual or post-primary campaign finance report. Therefore, this would suggest a deliberate action.
When Kerner used funds from the Opportunity House, Inc. to purchase campaign material, he potentially committed at least three violations: a campaign finance violation receiving money from a non-profit, an IRS violation contributing money from a non-profit to a political campaign, and using misappropriated state and federal grant funds from a 501 (c)(3) non-profit corporation for personal use.
The document shows that Kerner personally signed the check. Additionally, the printed check was customized with a logo of the National Hockey League’s Pittsburgh Penguins, of which Kerner is known to be a fan.
While Mountaineer Journal can confirm that state investigators have obtained copies of the documents, they were unable to comment on an ongoing investigation.
State and Federal Funding
In a 2019 interview with My Buckhannon, Matthew Kerner expressed that the Opportunity House, Inc. was subsidized by at least two federal agencies.
“Our funding used to be diversified,” Kerner stated. “I had funding from the state of West Virginia and two federal agencies – from HUD (U.S. Department of Housing and Urban Development) and the Veterans Administration (U.S. Department of Veterans Affairs).”
Following the date of the discovered misappropriation, Kerner expressed in the interview that his organization was experiencing financial difficulties. On June 18, 2019, My Buckhannon reported that the Opportunity House, Inc. lost $285,000 in grant funding from the U.S. Department of Housing and Urban Development.
Therefore, when the Opportunity House, Inc.’s remaining federal and state funds were limited, Kerner used these funds (on at least one occasion) to unlawfully purchase campaign material for personal use, rather than to combat Upshur County’s drug epidemic.
In June 2019, the Opportunity House, Inc. received a $200,000 federal Rural Communities Opioid Response Program grant. The grant funding was from the U.S. Department of Health and Human Services’ Federal Office of Rural Health Policy.
Conclusion
While additional misappropriations are currently unknown, it is advised that additional investigating is needed to determine if further violations have occurred. If Kerner has perpetually used the Opportunity House, Inc.‘s funds for his personal expenses, as the obtained documents suggest, substantial legal consequences could follow.
If you have any additional information pertaining to this incident or additional occurrences, please contact the West Virginia Commission on Special Investigations at (304) 347-4120.
News tips may also be submitted to Mountaineer Journal by emailing tips@mountaineerjournal.com or calling (304) 460-5161.