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A Pennsylvania attorney is facing a $300,000 fraud lawsuit, accused of siphoning nonprofit funds intended for a historic carousel and using them to pay off his own legal debt, prosecutors revealed Thursday.

The attorney, Adam Sager, a partner at Sager & Sager Associates, allegedly fabricated board meeting minutes to secure a fraudulent loan in the nonprofit's name, diverting the money for personal use, court documents allege.

Forgery, Fraud, and a Carousel in Crisis

According to Montgomery County prosecutors, Sager exploited his position on the board of the Carousel at Pottstown, manipulating financial records to obtain the $300,000 bank loan in July 2019.

Instead of financing carousel renovations, as claimed, nearly $295,000 of the funds went toward settling a personal $451,000 judgment from a prior lawsuit tied to investment fraud, prosecutors allege.

The deception allegedly included forged meeting minutes—submitted as false evidence that the board approved the loan.

A Philanthropist’s Donation Used to Cover the Tracks

At the same time, board members sought funding for legitimate carousel improvements, even discussing a potential donation from local philanthropist Barry Sankey, prosecutors noted.

By September 2019, Sankey donated $300,000 to the nonprofit, unaware that Sager had already drained an equivalent sum. The affidavit states that Sager immediately used Sankey’s donation to repay the fraudulent loan, concealing his actions.

It wasn’t until January 2024, during a financial review, that nonprofit leaders uncovered the shocking shortfall in their accounts, describing their finances as “struggling” in legal filings.

Criminal Charges Pile Up

Sager now faces multiple felony charges, including:

• Theft by deception
• Forgery
• Failure to properly distribute funds
• Dealing in unlawful proceeds

Historic Carousel Caught in the Crossfire

The Carousel at Pottstown, built in 1905 by the Philadelphia Toboggan Company, is part of a local entertainment venue. It survived the Great Depression and decades of restoration efforts, only to now face financial turmoil over alleged fraud.

Sager’s involvement with the nonprofit dates back to 2013, when he represented it in a legal matter. He later joined the board in 2018, eventually positioning himself at the center of the scandal.

Legal Battle Begins

Sager did not respond to requests for comment on Friday. Prosecutors Gwendolyn Kull and Robert George are leading the case.

Legal counsel for Sager was not immediately available.