Nonprofit Nevada fire council files for bankruptcy

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Updated: 11/21/2012 12:56 pm

CARSON CITY, Nev. (AP) — A nonprofit, Nevada fire safety group has filed for bankruptcy.

The Nevada Appeal reports the Nevada Fire Safe Council filed a voluntary Chapter 7 petition this week, seeking to liquidate debt and essentially end operations.

Documents list liabilities of up to $10 million and assets of anywhere from zero to $50,000.

The council established in 1999 shut down last spring after a federal audit released in February revealed irregularities in how it handled grants.

The council's purpose was to funnel federal grants to help residents in 130 different communities reduce the risk of catastrophic wildfire.

Auditors found that the council wasn't properly accounting for funding totaling more than $9 million. Auditors said there was no indication of fraud but condemned lax oversight and internal controls by the council.


Information from: Nevada Appeal,


©2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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