F5 Project Signed Compliance Agreement After Investigation

The Fargo-based nonprofit will remain under state oversight for five years following allegations of self-dealing.

Updated on Sept. 23, 2026 in Philanthropy

Bold flat-color editorial illustration showing a geometric building facade, representing institutional oversight and regulatory compliance. — The F5 Project has signed a five-year compliance agreement with North Dakota state regulators to resolve an investigation into self-dealing and conflicts of interest. AI Illustration. Upload story photo >

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The F5 Project has entered into a compliance agreement with the state of North Dakota to resolve an investigation into illegal self-dealing. The probe revealed that the nonprofit provided personal loans to leadership and engaged in real estate transactions that created conflicts of interest.

Why it matters

The settlement highlights the state's efforts to enforce accountability for nonprofits receiving taxpayer support. By opting for civil oversight rather than criminal charges, officials aim to establish a more rigorous culture of compliance within the sector.

The F5 Project has received more than $11 million in taxpayer funds since its founding in 2017. The organization is currently governed by a board of eight members.

The players

Adam Martin

He is a leader at the F5 Project who received personal loans deemed to be illegal self-dealing by state investigators.

Scott College

He is a leader at the F5 Project identified in the state investigation as a recipient of illegal personal loans.

F5 Project

This Fargo-based nonprofit organization provides services and has received over $11 million in state funding since 2017.

The details

The state's Consumer Protection and Antitrust Division investigated the organization's tax filings and real estate deals. While the F5 Project agreed to state-mandated oversight, it specifically does not admit or deny the allegations outlined in the petition filed at the Cass County Courthouse.

The F5 Project was founded in 2017.
Columnist Rob Port reported on the F5 loan transactions in January 2026.
The Attorney General announced the compliance agreement on September 23, 2026.
The organization will remain under state oversight for the next five years.

Market Landscape

This agreement reflects a broader effort by state regulators to increase scrutiny of nonprofits that rely heavily on public funding. It establishes a pattern of civil enforcement designed to curb conflicts of interest among leadership teams in the regional social services sector.

Residents should be aware that their tax contributions remain under heightened state monitoring to ensure funds are used for their intended public purposes. The agreement ensures that the F5 Project must now operate under a stricter framework to maintain its eligibility for state support.

The takeaway

Nonprofit organizations must maintain transparent governance practices to protect both their mission and their access to public resources. Organizations that prioritize internal compliance can avoid the potential for state dissolution and preserve community trust.

What happens next

The F5 Project must adhere to the terms of the five-year oversight agreement, or it could face potential dissolution if it fails to maintain compliance with the Attorney General's requirements.