New York Attorney General Letitia James has filed a lawsuit against the VDARE Foundation and its leaders, Peter Brimelow and Lydia Brimelow, alleging years of self-dealing and misuse of charitable assets. The suit claims that at least $2 million in funds intended for charitable purposes were diverted to benefit the Brimelows and their family.
According to the complaint, VDARE was established in 1999 as a nonprofit under the name Lexington Research Institute, Ltd., presenting itself as a research organization but primarily operating VDARE.com, a blog opposing immigration. The board consisted mainly of the Brimelows, their relatives, and close associates, which allegedly allowed unchecked control over financial decisions.
The Office of the Attorney General (OAG) found that in 2020, $1.4 million from VDARE’s funds was used by the Brimelows to purchase a castle in Berkeley Springs, West Virginia. Although this property was described as an office and conference space for VDARE, it became the family residence. Ownership was later transferred to companies controlled by the Brimelows through transactions arranged by Lydia Brimelow’s father.
The OAG alleges that after transferring ownership to out-of-state entities they controlled, the Brimelows set up arrangements where VDARE paid rent back to these same entities. This included what are described as sham lease agreements and backdated loans that enabled them to extract additional funds from VDARE. Further transactions pledged all of VDARE’s assets as collateral for loans from companies managed by Lydia Brimelow’s father.
When state investigators began looking into these activities in 2022, officials say the Brimelows did not cooperate with subpoenas or court orders for records. The OAG reports that VDARE has been held in contempt twice and owes significant unpaid fines while continuing not to comply with legal requirements.
Attorney General James stated: “Charities are intended to serve the public, not to bankroll castles or pad personal fortunes. The Brimelows used VDARE like their personal piggy bank, draining millions in charitable assets to enrich themselves. New Yorkers deserve accountability, and we will not allow these bad actors to keep abusing the trust of their donors and the public. My office is taking action to ensure these funds are used for their intended charitable purpose, remove the Brimelows from control, and shut down this fraudulent organization.”
The investigation also revealed that monthly rent payments from VDARE increased sharply during scrutiny—from $6,000 up to $33,000 within four months—and more than $1 million in mortgage obligations were released for companies linked to Lydia Brimelow’s father.
In 2024, after announcing it would shut down operations and closing its website—leaving only about $150,000 remaining—VDARE continued soliciting donations without officially dissolving or filing required annual reports for three years.
Payments traced by investigators include over $1.7 million sent to Berkeley Springs Castle Foundation (a West Virginia corporation created by Lydia Brimelow), at least $1.18 million sent to Happy Penguins (a now-defunct Connecticut corporation owned by Peter and Lydia Brimelow), at least $39,439 in unrepaid loans made out to BBB LLC (controlled by Lydia Brimelow), and $230,000 paid out for consulting services provided by Lydia Brimelow’s father without proper approval.
A sale of remaining interest in the castle property reportedly netted just $168,000 despite an earlier appraisal valuing it above $600,000; communications reviewed indicate parties involved agreed on lowering valuation deliberately amid regulatory concerns.
Attorney General James seeks restitution for misused assets along with penalties against those involved; she is also asking courts for rescission of unlawful transactions—including reversal of property transfers—the dissolution of VDARE Foundation itself; permanent bans on Peter and Lydia Brimelow serving any New York charity; prohibitions on future fundraising activity within New York; appointment of a receiver over remaining assets; and redistribution of those assets toward legitimate charities.
This case is being handled by Civil Rights Section Chief Rick Sawyer and Charities Enforcement Section Chief Emily Stern with Assistant Attorneys General Rachel Finn and Benjamin Liebowitz alongside Research Analyst Heather-Destiny Konan.
