Shelter Provider Sunstone Way Sued by Whistleblower Alleging Profligate Spending, Mismangement

A former finance director at Sunstone Way, a major homeless shelter operator in Portland, has filed a $4.5 million whistleblower lawsuit alleging financial mismanagement, including overspending on office space, staff retreats, and questionable contracts with related organizations, followed by retaliation after she raised concerns. Kate Fulton’s complaint details how CEO Andy Goebel allegedly moved offices while still paying rent on the old space, overbilled the county, paid consulting fees to connected individuals, and failed to disclose transactions, leading to severe cash flow problems that nearly caused payroll to be missed. The lawsuit adds to Sunstone Way’s troubled history with Multnomah County, which previously found the organization overbilled the county by $525,000 in 2022, and comes as the nonprofit has already lost some shelter contracts.