Maplewood signs onto fitness lawsuit

The suit alleges fraud and negligence.
COLUMBUS (AP) -- A lawsuit filed by the state's attorney general seeks $4 million for 99 Ohio schools that paid for fitness equipment they expected a charity to supply at no cost.
Maplewood High School in Trumbull County was the only district in the Mahoning Valley involved in the lawsuit.
The National School Fitness Foundation, a Utah-based nonprofit organization, arranged to sell $77.5 million in stationary bicycles, weight machines, treadmills and other equipment to more than 600 schools in Ohio and 19 other states.
Ohio schools bought or leased sets of equipment with the understanding that the foundation would raise charitable donations to reimburse them.
But Attorney General Jim Petro alleges in a lawsuit Thursday that money from newly enlisted schools was used to make token reimbursements to schools that participated earlier.
The lawsuit was filed against School Fitness Systems of American Fork, Utah; All-Starr Sports in Findlay, which helped sell the equipment; and other affiliated organizations. The nonprofit foundation was not named a defendant because it has filed for bankruptcy.
Schools purchased the equipment through the program's authorized dealer, School Fitness Systems, which paid about half the purchase price to the foundation to cover its operating costs. The equipment was worth less than $70,000 but was sold to Ohio schools for between $150,000 and $300,000, according to the lawsuit filed in Franklin County Common Pleas Court. The charges include fraud and negligence.
Messages seeking comment were left Friday for All-Starr Sports agent, Stephen Heintzelman.
Background
In July, the head of School Fitness Systems pleaded guilty to defrauding 19 Minnesota school districts and six banks of more than $1 million.
The foundation in June fired its president, Cameron J. Lewis, after he was accused of misappropriating $5 million in foundation funds.
A complaint filed in U.S. Bankruptcy Court of Utah said Lewis used foundation money to buy himself a small airplane and finish a $500,000 house in Highland, Utah, among other things. He has denied wrongdoing.
School officials in Ohio said they were pleased the lawsuit had been filed.
"Anything they can gain for us would be appreciated," Westerville Superintendent George Tombaugh said. "Money is tight."