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.
