IN THE CIRCUIT COURT OF COOK COUNTY,ILLINOIS

COUNTYDEPARTMENT.CHANCERYDIVISION

THE PEOPLE OF THE STATE OF ILLINOIS ex ret.LlSA )

MADIGAN, Attorney General of lllinois, )
Plaintiff, )
vs. )
) No.
THE PEACE MUSEUM, a dissolved Illinois not-for-profit )
corporation; and MELISSA MC GUIRB, )
)-
Defendants.
llcHo47 1?
COMPLAINT FOR EOUITABLE DEVIATION ANDiOR CYPfiES RELIEF AND
APPOINTMENT OF A RECEIVER

NOW COMES the Plaintiff, the PEOPLE OF THE STATE OF ILLINOIS ex rel. LISA

MADIGAN, Attorney Generalof lllinois, and complainsof DefendantsTHE PEACE MUSEUM, an

Illinois not-for-profit corporation,and MELISSA MC GUIRE, and statesas follows:

l. This causeis broughtfor and on behalf of the PEOPLEOF THE STATE OF ILLINOIS by and

throughthe Attorney Generalof Illinois pursuantto the Illinois CharitableTrust Act (760 ILCS 55ll et

seq') and the common law power and duty of the Attorney Generalto protect the interestsof the

PEOPLE OF THE STATE OF ILLINOIS in matterspertainingto charitableorganizationsand the

integrity of charitabletrusts,charitableassetsand funds solicitedfor charitablepurposesin Illinois.

2. The Plaintiff is the PEOPLE OF THE STATE OF IL

MUSEUM is (or was) an Illinois not-for-profitcorporationwhich

andhasactedasa charitabletrusteein Illinois. Therefore,this Court

the subjectmatterof this action.

3. The list of registrationsof charitabletrusteesrequiredto be registeredunderthe CharitableTrust

Act (760 ILCS 55/1 et seq.) are acceptedand maintainedby the Attorney Generalin her office in

Chicago,Cook County,Illinois. As such,venueof this action is proper in Cook County, Illinois

pursuantto Sectionl2 of the CharitableTrustAct. (760ILCS 55112.)

4. onApril
DefendantTHE PEACE MUSEUM is anlllinoisnot-for-profitcorporationincorporated

29, 1981with the Illinois Secretaryof Statefor exclusivelycharitablepurposes,which are statedin its

Articles of Incorporationas follows:

"To develop,promote,supportandmaintainfacilitiesforresearch,writing,public discussion,creation,

and exhibitionof worksof art, and educationof thegeneralpublic topromoteworldpeace,so long as
suchactivitiesarepermittedby Section501(c)(3)of theInternalRevenueCodeof 1954,as amended. "

(Attachedheretoand incorporatedhereinby referenceas Group Exhibit "A" is a copy of THE PEACE

MUSEUM's April 29, 1981 Articles of Incorporationalong with its December31, 1981 Articles of

Amendmentthereto.)

5. DefendantTHE PEACE MUSEUM's charitablepurposeswere describedin more detail as

followsin its Form990filed with thePlaintifffor thefiscalyear2003pursuantto theIllinois Charitable

TrustAct (760ILCS55ll et seq.):

" [PromotingJ Non-Violent Solutions to Social Issues..... ThePeace Museumstaff memberswork with
educators in Inner city Chicago and suburbanpublic school[sJ to teachpeace and conflict resolution
skills through art activity. They also present topics of civil rights, humqn rights, non-violent conflict
resolution in individual and national areas."

THE PEACEMUSEUMalsodescribed purposes

its charitable in furtherdetail
andaccomplishments

asfollows in its Form990-EZfiled with the InternalRevenueServicefor the year2006:

"The PeaceMuseum is thefirst and only one of its kind in the United States,exploring the impact of war
and peace through the arts. [ItsJ unique and valuable collection consistsof more thqn ] 0,000 artifacts
 including original paintings, sculptures.drawings, ribbon banners,posters, huttons, and lithographs.
Exhibitsfocus on individuol peacemakersand artists, the horuors of war, Central America, domestic
violence, human rights, prisons, and women's leadership. Thirteen rental exhibits are available and
travel to many cities throughout the U.S. and internationally. For young children through adults,
educationol opportunities enhancethe developmentof peace making and conflict managementskills.
Guidedtoursfor exhibitions,apeacecurriculunt, and specializedprogramsare cuailable. ..... ThePeace
Museum, through exploration of the impact of war and peace through the arts, advocatesfor non'
violen[tJ conflict resolution in individual and national areas,for civil rights, and sociol qction. "

(Attached hereto and incorporated herein by reference as Exhibit "B" is a copy of THE PEACE

MUSEUM's Form 990 for 2003. Attached hereto and incorporated herein by reference as Exhibit "C"

is a copy of THE PEACE MUSEUM'S Form 990-EZ for 2006.)

6. Pursuantto its charitablepurposesas set forth above, THE PEACE MUSEUM received

donationsof moneyand artifactsrelatedto peacemovementsandpeaceableconflict resolutionfrom the

public, including(on informationandbelief) JohnLennon'sguitar,andmaintaineda freepublic display

of suchartifactsthroughat least2004 atlocationsfirst in Chicago'sRiverNorth neighborhoodandlater

in Garfield Park.

7. DefendantTHE PEACEMUSEUM'smostrecent(2008)annualreportfiled with the Illinois

Secretaryof Stateis signedby DefendantMELISSA MC GUIRE (hereinafter"MC GUIRE") as its

"Administrator". (A copy of said2008 annualreportof THE PEACE MUSEUM filed with the Illinois

Secretaryof State,reflecting the aforesaidinformation, is attachedhereto and incorporatedherein by

referenceasExhibit "D".) Upon informationandbelief,DefendantMC GUIRE's addressis 5863North

Winthrop Avenue,Chicago,Cook County,Illinois 60660.

8. Byits exclusivelycharitablepurposesasaforesaid,DefendantTHE PEACE MUSEUM held and

holds its assetsfor charitablepurposes.

g. At all relevanttimes hereto.therewas in existenceand effect an Illinois statutegoverningthe

holding of charitablepropertyin the Stateof Illinois, namelythe CharitableTrust Act (760 ILCS 55/l

et seq.)(hereinafterthe "Trust Act").

10. As a consequenceof DefendantTHE PEACE MUSEUM holding assetsand contributionsas

aforesaidfor the charitablepurposesstatedin its Articles of Incorporationand Forms990 and 990-EZ

(previouslyattachedheretoas Exhibits "A", "B" and "C"), DefendantTHE PEACE MUSEUM is, and

'lrustee" as that term is definedin Section3 of the Trust

was at all times relevanthereto.a charitable

Act, as follows:

"Trustee"meansanyperson,individual,groupofindividuals,association, corporation,not-for-
profit corporation,estaterepresentative,or otherlegal entityholdingproperlyfor or solicited
for anycharitablepurpose;or anychiefoperatingoficer, director,executive director or owner
of a corporationsolicitingor holdingpropertyfor a charitablepurpose.

(760rLCSss/3).

II. THE PEACE MUSEUM wasregisteredwith

Fromits inceptionin 1981through2003,Defendant

the Attorney Generalas a charitable"trustee" under the Trust Act, and it filed annual financial reports

with the CharitableTrustsBureauof the Office of the Illinois Attorney Generalas requiredby Section

7(d) of the Trust Act (760 ILCS 5517(d)).However,after filing its annualfinancialreportfor the fiscal

yearendingDecember31,2003 on or aboutOctober15,2004,THE PEACE MUSEUM stoppedfiling

annualfinancial reportswith the Attorney General,and its registrationwith the Attorney Generalunder

the Trust Act was subsequentlycancelled.(A copy of THE PEACE MUSEUM's last annualfinancial

report(the onefor the year2003),showingthat it hadnet assetsof at least59,226at the endof that fiscal

year,is attachedheretoand incorporatedhereinby referenceas Exhibit "B", as aforesaid.)

4
12. In addition,THE PEACE MUSEUM failed to file a Secretaryof Stateannualreportfor the year

2009,and on September11,2009 DefendantTHE PEACE MUSEUM was administrativelydissolved

as a corporate entity by the Office of the Illinois Secretaryof State. (A copy of THE PEACE

MUSEUM's CertificateofDissolutionis attachedhereto hereinbyreference

andincorporated asExhibit

rrE".)

13. During the period from SeptemberI1,2009 throughthe present,THE PEACE MUSEUM has

filed no annual reports or other documentswith the Office of the Illinois Secretaryof State, and

DefendantTHE PEACE MUSEUM is currentlydissolvedas a corporateentity.

14. On its most recent(2008) Secretaryof Stateannualreport signedby DefendantMC GUIRE as

aforesaid(Exhibit "D" hereto),five individuals are listed as THE PEACE MUSEUM's officers and

directors,narnely Scott Franzblau,LuAnne Lewandowski, JackieRivet River, Leonard Goodman,and

Alan Jackson. However, upon information and belief, those individuals either resignedfrom their

fiduciarypositionswith THE PEACE MUSEUM prior to 2008or werenot officersor directorsof THE

PEACE MUSEUM to begiri with. (Attachedheretoas Group Exhibit "F" are affidavits from four ofthe

five aforesaidindividuals, namely Scott Franzblau,LuAnne Lewandowski,Leonard Goodman,and

JackieRivet River, statingthat they have resignedfrom their positionswith THE PEACE MUSEUM

andhavehadno involvementwith THE PEACE MUSEUM from at least2007throughthe present.The

Plaintiff hasbeenunableto locateor communicatewith Alan Jackson.)

15. Defendant MC GUIRE is the only person who is listed as a signatory on THE PEACE
 city
(formerlyMid-AmericaBankA'trational
MUSEUN4'sbank accountNo. 610110184at PNC Bank
sheis the only individualwho hashad any
Bank prior to a bankmerger),and,on informationandbelief,
to 2008' (A copy
and affairsin or subsequent
degreeof control over THE pEAcE MusEUM's assets

MUSEUM as the accountowner and

of the signaturecard on said bank accountlisting THE PEACE

heretoasExhibit "G" and incorporated

DefendantMC GUIRE asthe solesignatorythereonis attached

by referenceherein.)

taken stepsto either re-registerTHE

16. In fact, no one (including DefendantMC GUIRE) has

asa "trustee" of charitableassetsasrequired

PEACE MUSEUM with the Office of the Attomey General
THE PEACE MUSEUM with
by the charitable Trust Act (760 ILCS 55ll et seq.) orto reincorporate

to have only limited control over or access

the Office of the Secretaryof State,and MC GUIRE appeafs
pNC bank account of which she is the sole
to the assetsof rHE PEACE MUSEUM , apartfrom its

signatoryas aforesaid.

no longer existsas a corporate

17. In particular,becauseof the fact that THE PEACE MUSEUM

an offtcer or director of THE PEACE

entity and becauseDefendantMC GUIRE is not reflectedas

of State(Exhibit "D" hereto),the two

MUSEUM on its most recentfilings with the lllinois Secretary

non-monetaryassetsare storedas
privatestoragefacilitiesin which rHE PEACE MUSEUM's various

Inc') havequestionedher authority

setforth hereinbelow(namelyExtra SpaceStorageandTerry Dowd,

to grantDefendantMC GUIRE and/or

to act in THE PEACE MUSEUM, s nameandhavebeenreluctant

facilities, including information about

her attorneyaccessto or specific information aboutthosestorage

and paymentterms for keepingthose

the specificitems storedin thosestoragefacilities or the billing
a_.

items in storage.

18. As a consequenceof the foregoing,the assetsof THE PEACE MUSEUM are in need of

protection. Specifically,they are in needof marshalingby a Receiveror somepersonor entity duly

appointedby the Courtwho would possessfull andobviousauthorityto actin THE PEACE MUSEUM's

nameand on its behalf,and, oncemarshaled,they are in needof being re-directed,via the doctrineof

equitabledeviation,to servethe charitablepurposesof THE PEACE MUSEUM for which they were

originally intended,includingbut not limited to public educationandfreepublic displayofpeace-related

historic artifactsfor the benefitof the public and the PEOPLE OF THE STATE OF ILLINOIS.

19. Upon informationand belief, substantialassetshavebeentitled and/orheld in DefendantTHE

PEACE MUSEUM's namein recentyears,including the following categoriesof assets:

a. The aforementionedbank Account No. 610110i84 at PNC Bank (formerlv Mid-America

Bank/NationalCity Bank) over which DefendantMC GUIRE had and still has sole signature

authority,the amountheld in which accountwas,on informationand belief, some$ 6,524.65as

of October29,2010 (the date of its most recentmonthly bank statement);and

b. A collectionofvarious peace-movement-related
artifactsof THE PEACE MUSEUM which are

in storagein at leastthreedifferent places,namely (l) in two storerooms in the Garfield Park

Conservatory,100North CentralParkAvenue,Chicago,Illinois 60624,asto which the Plaintiff

hasbeeninformed,andon that basisbelieves,that one or both of thosestoreroomshassuffered

significant water and mold damage; (2) in storagespaceat Tery Dowd, Inc., 2501 West

ArmitageAvenue,Chicago,Illinois 60647,onwhich periodicrentalpaymentsmustbe paid; and

(3) in storagespaceat Extra SpaceStorage,6331North Broadway,Chicago,Illinois 60660 on

which periodic rental paymentsmust likewise be paid. Upon informationand belief, as stated

previouslyherein,the Plaintiff is informed,andon that basisbelieves.thattheseartifactsin THE

 includes(or recentlyincluded)theguitarof JohnLennon, and
PEACEMUSEUM's possession

in any event comprise the bulk of the PEACE MLTSEUM's charitable assets.

20. All propertyof THE PEACE MUSEUM is charitablepropertyandis impressedwith a charitable

trust by operationof law. As a consequence

of the foregoing,THE PEACE MUSEUM's charitable

propertyis in needof protection.

2L As aconsequence
of the foregoing,the charitableassetsheld by and/orin thenameof Defendanl

THE PEACE MUSEUM are in needof protection,and DefendantMC GUIRE should be removedas

custodianand/orfiduciary of said charitableassetsand a receivershouldbe appointedin her steadby

Order of this Court pursuantto Section16(b)of the Trust Act, which Sectionprovides:

"(b) Upon application to the chancerydivision ofthe circuit court inwhich theAttorney
General alleges that a charitable trust needs to be protected or the trustees of a
charitable organization or trust have engagedin a breach offiduciary duty toward the
orgonization, and injunctive relief and removal of such trustees is sought, the Court
shall exercise its discretion as the equities require and may, as part of the injunctive
relief, and after a hearing where such trusteesshall have an opportunity to be heard,
appoint temporarily or permanently a receiver or additional trusteesto protect and
operate the organization and may temporarily, or as ultimate relieffor breach of duty
or to protect the trust, permanently remove any charitable organization's trustees,
corporate fficers, directors and membersfrom ofJice and appoint replacementsto
protect thepublic interest."

(760rLCSsst16(2008).)

22. Withrespecttoanyandall propertyandassetsofTHEPEACE MUSEUM, thePlaintiffrequests

that (a) a receiver be appointed forthwith to marshal,protect and conservesaid property and assets

(includingbut not limited to payingall necessarystoragerentalfees)until furtherorderof the Court and

(b) all said property and assetsbe ultimately transferredto one or more charitableorganization(s)

engagedin bonafide charitableactivities involving the educationof the Illinois public in peaceful
conflict resolutionand/orthe history and accomplishmentsof the peacemovementpursuantto the

equitabledoctrinesof equitabledeviation andlorcy pres.

PlaintiffthePEOPLEOFTHESTATEOFILLINOISexrel.LISA MADIGAN.
WHEREFORE.

AttorneyGeneralof Illinois,praysthatthis HonorableCourtenteran Order:

A. Finding and adjudgingthat the charitableassetsof DefendantTHE PEACE MUSEUM

are in needof protection;

B. Appointing a receiverwith full authorityto collect,take possessionof and marshalall

assetsand their fruits and proceedsthat were owned by and/orheld in the nameof THE

PEACE MUSEUM at the time of its dissolutionas a not-for-profit corporationby the

Illinois Secretaryof Stateon or aboutSeptemberll,2009,forthe benefitof charityand

the PEOPLEOF THE STATE OF ILLINOIS, pendingdirectionsfrom the Court as to

how and to what charitableentity or entitiesto distributesaid assets;

C. Directing DefendantsTHE PEACE MUSEUM and MELISSA MC GUIRE to make a

strict accountingof all assetsowned, held by, or titled in the name of THE PEACE

MUSEUM, includingbut not limited to all artifacts,all museumexhibits,and all bank

accountsheld by THE PEACE MUSEUM and/or in its niune subsequentto its

dissolutionas a not-for-profitcorporationby the Illinois Secretaryof Stateon or about

September11,2009,and of all fruits, proceeds,rents,receiptsand disbursements

from

all suchassets;

D. Transferringall saidpropertyand assets,onceaccountedfor and marshaled,to one or

more charitableorganization(s)engagedinbonafide charitableactivitiesinvolving the

educationof the Illinois public in peacefulconflict resolutionand/or the history and

9
 accomplishmentsof the peace movement, pursuant to the equitable doctrines of

equitabledeviationand/orcy pres; and

E. Grantingsuchother and further relief as this Court deemsjust and equitableunderthe

circumstancesof this cause.

RespectfullySubmitted,

THE PEOPLE OF THE STATE OF ILLINOIS

ex rel. LISA MADIGAN,
Attorney Generalof Illinois

lrLfuD.g'&
ffievGeneral
THERESEHARRIS #99OOO
MATTHEWD. SHAPIRO
AssistantAttorneysGeneral
CharitableTrustsBureau
100WestRandolph Street.I 1'hFloor
Chicago,Illinois60601
Telephone:(312)-814-3161.

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