The Minnesota attorney general is suing the founder and former superintendent of Hmong College Preparatory Academy in St. Paul over an investment scandal that cost the charter school more than $4 million.

Keith Ellison’s office filed the lawsuit against Christianna Hang more than three years after opening an investigation into potential violations of the Minnesota Nonprofit Corporation Act and the Charitable Solicitation Act.

The new complaint accuses Hang of “reckless conduct” when she invested $5 million of the charter school’s money with hedge fund Woodstock Capital in 2019.

“Hang made a money-losing investment in a hedge fund without the approval of HCPA’s board of directors, in violation of state law, in violation of HCPA’s investment policy, against the advice of HCPA’s legal counsel and accountant, and without conducting any meaningful research into the purported investment company — which resulted in HCPA losing more than $4 million as a result of her recklessness,” the lawsuit said.

Hang resigned as superintendent of Hmong Prep in 2021 after a report by the state auditor also found the investment of public money violated Minnesota law. Hang did not immediately respond to requests for comment. 

“I am suing to recover these funds, protect the educations of young Minnesotans attending HCPA, and hold Ms. Hang accountable,” Ellison said in a statement Thursday.

The Attorney General’s Office also reached a separate agreement with Hmong Prep that imposes additional controls, safeguards, and training for board members related to governance and investment practices.

State investigators found several previous HCPA directors, officers and family members “engaged in selfdealing or conflicted transactions during or shortly after their terms that combined were worth hundreds of thousands of dollars,” according to court records.

In a statement, the school told 5 INVESTIGATES it “fully cooperated” with the attorney general.

“We are confident we have put in place systems and governance to meet the Attorney General’s requests,” the statement said.

Hmong Prep previously sued Woodstock Capital in federal court over the investment losses. Last month, both sides told the court they had reached a tentative settlement, but no amount has been disclosed.