A former executive at Sunstone Way sued the shelter provider for $4.5 million in Multnomah County Circuit Court, alleging that the nonprofit’s leaders overspent on Portland office space, staff retreats to Bend, and bloated contracts with related organizations, then retaliated against her after she questioned expenses.
Sunstone Way was Multnomah County’s 11th-largest contractor in the 2024 fiscal year. Previously known as All Good Northwest, it operates homeless shelters for the city and the county, including Weidler Village, a 38-unit cluster in Northeast Portland and the 70-bed Delta Park Motel Shelter, a former Motel 6 converted just last June.
Kate Fulton joined Sunstone Way as finance manager on Oct. 2, 2023. She was promoted to director of finance in early 2024, giving her a bird’s eye view of the nonprofit’s books.
“By July 2024, it became apparent to plaintiff that Sunstone Way was being mismanaged financially,” the complaint says. “That month, the organization nearly failed to make payroll for its employees and was able to do so only through plaintiff’s negotiation with Sunstone Way’s bank to avoid a default.”
Fulton’s whistleblower suit is the latest threat to Sunstone Way. Last April, it lost the contract to manage the city’s 100-bed pod village in Southwest Portland. Its Market Street Shelter, run for the county, is set to close in March.
Sunstone Way has a history of accounting issues. In 2022, leaders there overbilled Multnomah County by $525,000, according...
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