CEO of veteran Loris charity reaches settlement in federal fraud case

RICHMOND, Va. (WMBF) – The CEO of a Loris-based veterans assistance organization whose mission was to help veterans in need has reached a guilty plea agreement in his federal fraud case.

James Arehart of Myrtle Beach founded Providing Hope VA in April 2018. Their mission was to help veterans facing financial hardship, homelessness or unemployment and those in need of treatment.

The organization was initially registered as a 501c3 nonprofit in Virginia, but in early 2020 Arehart moved the charity's headquarters to Loris.

PREVIOUS COVERAGE | Federal court charges CEO of charity Loris with fraud

On July 26, he pleaded guilty to engaging in monetary transactions involving assets derived from certain illegal activities, also known as money laundering.

Documents show he withdrew $25,000 from Providing Hope VA's bank account in April 2020 and wrote a check to a pool construction company in South Carolina. Court records say he also withdrew $125,000 from the charity's account and wrote the check to a third party.

According to a settlement, Arehart faces a maximum of 10 years in prison and a $250,000 fine. His sentencing is scheduled for February 20, 2025, in Virginia.

Arehart also faced several other federal charges, including wire fraud and making false statements to federal agents, but the settlement dropped those charges against him.

He was accused of over-inflating his salary and at one point proposed and approved a $525,000 severance package.

Arehart was also suspected of misrepresenting the charity's growing “construction fund” for a new facility in Virginia that could house up to 100 veterans. However, the indictment claimed there was no “construction fund.” Instead, the indictment said all proceeds were deposited into a single bank account.

In November 2023, WMBF News reported that Providing Hope VA was moving forward with construction of a new $2.5 million center to house nearly 20 veterans, which would be located on Highway 701 in Loris.

But that is unlikely to happen, as the nonprofit's website states: “We are taking a break. We want to thank you all for your support and community shown over the past few years.”

The Providing Hope VA Facebook page was also removed.

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