Westmont College will be receiving millions of dollars as part of a settlement that the California Attorney General’s Office reached with the Valley Rock Foundation.
The Attorney General’s Office said the settlement “resolves allegations that the directors engaged in self-dealing transactions, unjust enrichment and breach of fiduciary duty for improper personal benefits from the foundation’s charitable assets.”
Directors Celeste White and Dr. Robert White do not admit liability in the settlement agreement.
As part of the settlement, the Valley Rock Foundation, formerly known as the Edward A. Keith Foundation, will be dissolved and remaining assets will be distributed to Westmont College, the foundation’s beneficiary upon dissolution.
As part of settlement terms, the foundation will set a final $10 million grant to go toward the renovation of campus facilities at Westmont, the opening of a community-use area in Yountville, and the rehabilitation and development of two churches in the Napa area.
Westmont will get $3 million to renovate the college’s Downtown Grotenhuis Nursing Campus at 26 and 29 Anapamu St.
Additionally, either Celeste White or Robert White will resign as director of the foundation and Gayle Beebe, president of Westmont, will be appointed to the board as an independent director, according to the settlement agreement.
“The Whites are a wonderful part of the Westmont family, and we’re grateful for all they’ve done to advance the mission of Westmont,” Beebe said in a statement to Noozhawk on Tuesday.
In 2021, the Whites donated $7.25 million to Westmont, which was used to purchase the four-story downtown building at 29 Anapamu St. At the time, it was the second-largest single donation in the college’s history. Celeste White is a Westmont College graduate and member of the Board of Trustees.
The Attorney General’s Office announced that its investigation found that the Whites used charitable assets to make improvements to their personal property.
“The settlement resolves concerns that the Whites breached their fiduciary obligation to act in the best interest of their charitable organization,” the office said in a statement.
The investigation also revealed that the foundation allegedly formed Veritas Refuge to acquire and manage the foundation’s real estate assets. The expenses of the Veritas Refuge, however, do not appear on the foundation’s IRS Form 990-PFs, according to the Attorney General’s Office.
The foundation also will pay the California Department of Justice $150,000 in attorneys’ fees and investigation costs.