Financial Inquiry Into Women’s Shelter Sought : Litigation: Operators of Eli Home and its Anaheim Hills neighbors are feuding. A $19.5-million lawsuit is on file and a city councilman wants to look into allegations of misuse of donated funds.

ANAHEIM — As a feud heats up between Eli Home officials and its neighbors, City Councilman Lou Lopez on Thursday called for an investigation into allegations that the shelter for abused women and children is misusing donated funds.

“We need to make sure they are in good standing and financially sound,” Lopez said. “I think for the good of the Eli Home, we should clear this matter up.”

Earlier this week, the Eli Home filed a $19.5-million lawsuit against three Anaheim Hills neighbors, charging they are scaring off donors by making false statements about the shelter. However, the neighbors led by Gene Secrest contend their accusations of mismanagement and fraud are supported by public records.

Honored by the past two U.S. Presidents, the Eli Home wants to open a shelter that could house up to 22 people in the upscale community. In spite of protests from neighbors, the organization has already won council approval for conditional-use and building permits to renovate a run-down structure already on the .22-acre site.

However, three other council members said Thursday that the city should avoid the bitter dispute between neighbors and the nonprofit shelter, which offers emergency counseling and housing for abuse victims. Councilmen Frank Feldhaus, Bob Zemel and Tom Tait said the council should limit its role in the matter to settling land-use and not character issues.

“It’s become a real nasty fight,” said Feldhaus, who voted against a conditional-use permit for the Eli Home last year because he thought it would become overcrowded. “I don’t think the council should get involved in this. We are not a judgmental court. They are going to have to resolve their differences.”

Added Zemel, a former member of the Eli Home’s advisory board, “It wouldn’t surprise me if there were financial glitches in their system. I’d almost expect it. All nonprofits--where most of the money goes into programs and back to the people they serve--will end up having financial trouble at some point, if not regularly.”

A preliminary investigation by the Anaheim Police Department recently turned up “no evidence of criminal activity” at the Eli Home, said city spokesman Bret Colson on Wednesday. But city officials would not comment further on that investigation and whether another city agency would undertake an inquiry.

At several public meetings, Secrest has urged the council to revoke permits for the Eli Home. Secrest has charged the shelter did not pay thousands of dollars in rent and owes the Internal Revenue Service $38,829 in back taxes.

Also, Secrest has alleged the shelter has not been operating since October, 1993, and yet continues to solicit donations. Secrest, whose home is next to the site of the shelter, has accused the organization’s executive director of drawing a salary of nearly $40,000 over a recent two-year period in spite of presenting herself to the community as an unpaid volunteer.

Galloway said the shelter has been delinquent in rent payments, but has always paid all its bills. And, Galloway said, the shelter is on a repayment plan with IRS.

Also, Galloway said she did receive a salary in the early 1990s, but has since returned to unpaid service for the shelter.

Eli Home officials are scheduled to appear before the city Planning Commission on May 15. They are seeking city permits for landscaping, a block wall, and approval of building plans.