The National Diversity Council (NDC), a prominent nonprofit in the diversity, equity, and inclusion (DEI) space, filed for bankruptcy on March 17 after its board accused founder R. Dennis Kennedy and top executives of embezzling millions of dollars, a lawsuit and Daily Wire investigation reveal.
Kennedy allegedly used NDC’s donor funds to enrich himself, paying a $450,000 salary for just 10 hours of weekly work in 2020. In 2022, Kennedy, CEO Ángeles Valenciano, and CFO Jason deGroot unilaterally awarded themselves nearly $3 million in “back pay,” paying out over $1 million without board approval. When confronted, Kennedy transferred NDC trademarks and domains into his own name and created a near-identical organization to collect payments directly.
The board's lawsuit accuses the trio of criminal conduct “rising to at least a third-degree felony.” The alleged scheme involved siphoning off revenue via Kennedy’s for-profit firm, Diversity & Leadership Inc. (D&L), and two Texas-based nonprofits — the Texas and California Diversity Councils — while misusing NDC’s staff and assets across entities.
Tax filings show Kennedy earned $787,000 from NDC and $351,113 from the Texas group in 2021. Valenciano and deGroot also drew six-figure salaries from both, despite working 35–40 hours a week for each, according to filings the board disputes.
NDC’s website now redirects to a fake version operated by Kennedy, who is promoting a “National Diversity & Leadership Conference” in Los Angeles from April 7–10. Speakers include Bill Clinton, Oprah Winfrey, Julian Castro, and Cornel West, with photo ops priced at up to $4,999. Payments go to D&L Inc., which briefly lost its business registration in 2023 due to tax nonpayment.
The board says Kennedy exploited NDC’s brand and connections to trick sponsors and participants into supporting a private venture, falsely marketed as nonprofit. Since 2021, Kennedy has registered over 350 trademarks—including NDC's name and initiatives—to himself, allegedly waiting for NDC's filings to lapse before re-registering them.
In January 2023, amid board scrutiny, Kennedy emailed co-conspirators to “remove board from website & create a new board,” cancel the board's insurance, and copy all NDC files. Days later, the board suspended the trio with pay pending investigation. Kennedy’s IT manager, Jason Lee—now listed as part of Kennedy’s private firm—allegedly helped him extract internal emails and documents. The trio resigned on February 1, 2023, the same day they were to be interviewed. Just prior, deGroot transferred $200,000 to the Texas nonprofit.
Kennedy now runs numerous similar-sounding organizations, such as:
- Racial Justice Institute (hosting a national conference April 10)
- National Belonging Institute
- Inclusion Lab ($2,499 “certification” programs)
- National ESG Council ($999 credentials)
- Global Diversity Council
- Center for Diversity Certification
- National Women’s Consortium
- Alabama Diversity Council
All appear to be for-profit ventures, many with identical branding and websites showcasing Kennedy alongside public figures like Barack Obama.
In a January 2025 filing, the Texas Diversity Council—also implicated—was renamed the Texas Leadership Consortium. It lists Kennedy, Valenciano, and deGroot as staff.
Valenciano previously worked for 84 Lumber as a diversity officer. DeGroot and Kennedy have not commented, and their attorney did not respond to requests.
Ironically, NDC once sued former executive Carmen Michelle Carter for diverting DEI revenue to herself, winning a judgment in 2018 after a judge ruled Carter perjured herself in bankruptcy court to avoid paying restitution.
While the 2023 lawsuit from NDC’s board has not been widely reported until now, this month’s bankruptcy filing, first flagged by CourtWatch, formalizes the collapse of one of the nation’s most visible DEI nonprofits.
Despite the legal cloud, Kennedy, Valenciano, and deGroot are countersuing NDC for “backpay” and suing its insurer for refusing to cover their legal bills. A judge ruled the insurer isn’t obligated to defend executives accused of “fraudulent and willful misconduct… including misappropriation of donor funds.”
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