Greensboro, NC – Newly obtained expense reports reveal that Downtown Greensboro Inc. (DGI), a nonprofit funded by city and Guilford County taxpayers, repeatedly treated powerful developers, business executives, and political donors to high-end meals while its president, City Councilmember Zack Matheny, lobbied for policies benefiting those same interests.
The bombshell expense reports revealing Downtown Greensboro Inc.'s (DGI) questionable spending of taxpayer money in FY23-24 may only be the beginning, according to government watchdogs and legal experts. With investigations now expanding, sources confirm that years of additional financial records could expose a far broader pattern of potential nonprofit abuse, political favoritism, and misuse of public funds including Thousands spent on Wyndham Championship, Swarm, Grasshoppers, and Tanger Center tickets with no clear business purpose or any records of who made use of the 'complimentary' perks.
The records, obtained through public records requests, show a pattern of DGI-funded meals at Greensboro’s most expensive restaurants, often involving executives whose companies have financial stakes in downtown development decisions.
These were charged to the DMSD program, meaning they were funded through the Downtown Municipal Service District = public tax dollars.
What We Know So Far – And What’s Still Hidden
The records obtained so far—covering just July 2023 to June 2024—already show;
Unregistered lobbying by Matheny, who doubles as DGI president and councilmember.
The $300 “Power Lunch”;
On December 5, 2023, DGI paid $300.12 for a lunch at Undercurrent Restaurant attended by:
Arthur Samet (Samet Corporation, a city contractor and Matheny donor)
Roy Carroll (Billionaire developer and Matheny donor)
Allen Dick (Dick Broadcasting, a Matheny donor)
Why It Matters;
Samet Corp has received millions in city contracts.
Roy Carroll donated $5,000 to Matheny’s campaign weeks before the meal and has received millions in economic incentives from the City of Greensboro.
Allen Dick gave $250 to Matheny in 2022, then enjoyed a $139 DGI/taxpayer funded meal at Lewis and Elm months later.
The Ethics Violations;
IRS Abuse: DGI, a 501(c)(3) nonprofit, cannot use funds to benefit private interests. These meals may violate tax-exempt rules.
Unregistered Lobbying: Matheny, as DGI president, appears to have lobbied attendees without registering as a lobbyist (a $5,000-per-violation offense under N.C. law).
Pay-to-Play Optics: The timing of donations followed by DGI-funded access raises bribery concerns.
The Bigger Problem
This isn’t an isolated incident. DGI’s records show a pattern of wining and dining city officials, donors, and contractors, including:
Mayor Nancy Vaughan ($62 meal at Undercurrent)
City Manager Taiwo Jaiyeoba ($43 meal at Liberty Oak)
City Attorney Watts ($64.17 meal at Undercurrent)
Legal experts say these expenditures could jeopardize DGI’s nonprofit status—and even lead to criminal referrals for misuse of public funds.
DGI and Matheny declined to comment.
But the real scandal may still be buried.
Missing Years – What’s Not Yet Public
FY 2021-2023 and 2024-2025: DGI’s spending during Matheny’s latest council term.
Earlier and latest donor Links: Full timeline of donations → DGI perks → city votes.
A source close to the investigation (speaking anonymously) stated:
"The FY23-24 records are just the tip of the iceberg. We’ve seen hints of deeper issues—missing receipts, blurred expense reports, and private meetings that never appeared on any public ledger."
Who else was involved? More officials, developers, or donors could be named;
The documents, obtained through public records requests, show a pattern of poorly documented entertainment expenses, but do include:
The Wyndham Championship Controversy
$5,000 "Partners Club" Sponsorship (July 2023)
Paid to the Wyndham Championship, where DGI board member Mark Brazil serves as CEO.
Conflict of Interest? DGI effectively funded Brazil’s own event—while he helped oversee DGI’s budget.
$456 Dinner at B. Christopher’s (December 2023)
Attendees included Mark Brazil, Eric Chilton (TV personality), and others.
No meeting purpose documented—just a vague "Brazil, Leasure, Chilton, Carter" listed.
Lavish meals with developers, media figures, and city insiders.
Nonprofits must keep detailed records of expenses. The lack of names suggests deliberate obfuscation.
"This looks like a slush fund for VIP access. Where’s the transparency?" – Government watchdog
"If tickets went to city officials, it’s textbook corruption." – Ethics lawyer
Is DGI a Slush Fund for Favors?
Related;
REVELATION: Greensboro Accused of Busing Unhoused Individuals Out of City Using Taxpayer Funds via DGI
https://georgehartzman.substack.com/p/revelation-greensboro-accused-of
"DGI Board Members Face Mounting Pressure to Recuse Themselves or Resign Amid Deepening Compliance Investigation involving Greensboro's City Council"
https://georgehartzman.substack.com/p/dgi-board-members-face-mounting-pressure
