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The former president and CEO of a Los Angeles-based anti-poverty nonprofit agency was sentenced today to six months in federal prison for embezzling money from the nonprofit for his personal benefit, failing to report these funds on his tax returns, and intentionally misapplying more than $600,000 in grant money to pay for unauthorized expenses, according to a DOJ press release. Howard Dixon Slingerland of Studio City, Calif., was sentenced by U.S. District Judge Dolly M. Gee, who also ordered him to serve six months of home confinement, pay a fine of $10,000, pay $750,470 in restitution and to perform 200 hours of community service. Slingerland pleaded guilty on March 8 to one count of conversion and intentional misapplication of funds from an organization receiving federal money and one count of subscribing to a false federal income tax return. From 1996 until he was fired in September 2019, Slingerland led the Youth Policy Institute Inc. (YPI), a Hollywood-based nonprofit agency that worked to eradicate poverty, eventually becoming president and CEO. YPI operated in some of the highest needs neighborhoods in Los Angeles, running programs aimed at supporting youth education, development, safety, job training, and health and wellness. As the head of YPI, Slingerland had check-signing authority over YPI’s bank accounts and was the personal guarantor of YPI’s credit card. From January 2015 to February 2019, Slingerland caused at least $71,533 of YPI funds to be spent on unauthorized expenditures, including Slingerland’s personal property tax bill that exceeded $14,000; a Slingerland family dinner at an upscale New York City restaurant costing more than $6,000; private tutoring for a family member costing nearly $11,000; and a home computer and software valued at nearly $2,000.

A Bloomberg report draws attention to the financial distress faced by suburban moms who invested in boutique fitness franchises such as CycleBar, Pure Barre, Club Pilates, Stride, and Row House, among others. These franchises, offering specialized workouts to cater to individual preferences, have reportedly led many franchisees, particularly suburban moms, towards financial ruin. Franchisees are attracted to brands like CycleBar, a fitness chain akin to SoulCycle, but minus the high-profile amenities and atmosphere. Targeting a demographic of thirty- and fortysomething women, CycleBar offers upscale, technology-infused spinning classes. Other specialized fitness franchises cater to niche workout preferences, such as barre workouts at Pure Barre, Pilates at Club Pilates, treadmill-based interval training at Stride, and rowing at Row House. Additional fitness experiences include AKT for dance workouts, Rumble Boxing for a nightclub-style boxing gym, Body Fit Training for traditional workouts, YogaSix for yoga, and StretchLab for muscle stretching services. Despite the allure of owning a fitness franchise, many suburban moms who invested in these brands are now facing financial devastation. The report highlights the possible pitfalls of franchising in an industry marked by its competitiveness and volatility. The situation is exacerbated by rising costs, labor shortages, and economic instability, leading to significant losses for companies involved in physical operations.

The bankruptcy filing by WeWork, Inc. in November propelled November commercial chapter 11 filings to 842, an increase of 141 percent over the 349 filings registered in November 2022, according to data provided by Epiq Bankruptcy, the leading provider of U.S. bankruptcy filing data. The case filed by WeWork, Inc. on Nov. 6 included 517 related filings, according to an ABI analysis, representing the third-most related filings in a case since the Bankruptcy Code became effective in 1979. Overall commercial filings increased 21 percent to 2,252 in November 2023, up from the 1,864 commercial filings registered in November 2022. Small business filings, captured as subchapter V elections within chapter 11, increased 79 percent to 181 in November 2023, up from 101 in November 2022. Total bankruptcy filings were 37,860 in November 2023, a 21 percent increase from the November 2022 total of 31,187. Individual bankruptcy filings also registered a 21 percent year-over-year increase, as the 35,608 in November 2023 represented an increase over the 29,323 filings in November 2022. There were 20,250 individual chapter 7 filings in November 2023, a 23 percent increase over the 16,421 filings recorded in November 2022, and there were 15,280 individual chapter 13 filings in November 2023, a 19 percent increase over the 12,862 filings the previous November.