Updated: Jan. 13, 1:53 p.m.

Craig Marquardo, the man behind last summer’s all-you-can-eat ice cream festival, cannot serve on a nonprofit board for five years and agreed to pay two charities a total of around $4,000 after signing a settlement with the Oregon Department of Justice last month.

In the settlement, the Department of Justice says that Marquardo, who spearheaded Scooperbowl (which morphed into Scooperfest) at Portland’s Pioneer Courthouse Square last July, “violated the Unlawful Trade Practices Act” and “other legal requirements with solicitations by and governances of” his nonprofit, Fathom Innovation Foundation.

In the settlement, which Marquardo and the state agreed to in December, he admitted no violation of the law, but he agreed to dissolve the nonprofit and not serve in “any fiduciary capacity for any charitable or nonprofit organization for a period of five years.”

If he wants to serve in such a capacity again, he must complete 15 hours of training and submit paperwork to the department, proving he is in compliance with the state’s nonprofit regulations.

He also agreed to pay $3,657 to Oregon Dairy Women and $406 to Randall Children’s Hospital Foundation. Oregon Dairy Women and Randall Children’s Hospital confirmed that they have received the required amounts.

After The Oregonian/OregonLive reported on the then-Scooperbowl in April, questions arose about Marquardo’s background.

Marquardo was convicted of making a false statement under oath or in affidavit after running for office in Hood River in 2006. Previously, he claimed to be the senior vice president of distribution for Warner Bros. in the early ‘90s.

When he was involved in efforts to bring Major League Baseball to Portland in 2003, he made many hard to verify claims, including that he was a backup singer for Sting at age 15 and a professional baseball player at 17.

Marquardo was involved in a convoluted legal battle between 2013 and 2018 that began when he managed the comedian Gallagher.

Scooperfest was billed as a fundraiser put on by Marquardo’s nonprofit, Fathom Innovation Foundation, with ice cream companies donating product and time to the event.

Marquardo’s refused to tell The Oregonian/OregonLive the names the board of directors required by law for his nonprofit in the lead up to Scooperfest in July.

Communications between the Department of Justice and Marquardo named two board members: Keith Widom and Aaron Short. Neither have responded to requests for comment on their involvement with Scooperfest.

In the run-up to the festival, he claimed his IRS 501c3 status was pending, which could not be verified. The City of Portland also could not find any required temporary or regular business license registrations for Fathom Innovation Foundation or Craig Marquardo.

At the time, Marquardo said his company and the event were in “complete compliance with all city, state and federal laws,” and that his temporary business license “has already been filed.”

After the publication of the original story, Marquardo purchased a temporary business license, which he shared with The Oregonian/OregonLive in January.

State records show that Marquardo dissolved his nonprofit on July 9 and on the same day registered a for-profit called Fathom Innovation Foundation, LLC.

Emails between Marquardo and Department of Justice Civil Enforcement Division lawyer Elizabeth Grant from June show that the DOJ advised Marquardo not to dissolve his nonprofit.

“Our view is that it is unlawful for you to dissolve the nonprofit at this time,” Grant wrote on June 20, “and our office does not consent to that or to the transfer of any nonprofit assets to you or any for-profit entity you control.”

The festival took place July 20-21. The advertised waterslide was there, as was the unlimited ice cream, albeit in small servings and mostly not from local purveyors. Fifty Licks and Future Pops were the two local brands that participated.

As the event opened on July 20, the line to get in the festival wrapped around the square. Once inside the tent, visitors were mostly satisfied with the selection.

The crowd was less enthusiastic on Sunday when the selection of flavors was smaller and labels were hand-written and didn’t specify allergens in the ice cream. Several attendees that day called the event “underwhelming.”

After the event, Mick Shillingford of Future Pops said the event was “a lot more work than I anticipated” after several snafus involving freezer trucks and melting ice cream.

But, he added, Marquardo “compensated me for my help and overall the event was successful.”

Emails from October show that after the event, the Department of Justice determined that Marquardo owed $14,619.67 “for charitable distributions,” including $4,619.67 “in charitable funds that were used for personal expenditures.”

The amount Marquardo finally paid was reduced due to accountant and tax payments.

The emails also show several irregularities with the way Marquardo marketed and operated the event, including the co-mingling of his personal money and money from Fathom Innovation Foundation, and questionable cash payments.

In one instance, he told the DOJ he paid “volunteers” $1,200 in cash to work a second day.

“The cash dispensed to volunteers was not originally discussed because I didn’t want them to have to be taxed,” Marquardo wrote in an October email.

“It should go without saying,” Grant responded, “that it is inappropriate for a nonprofit to make cash payments to contractors or other persons for the purpose of facilitating tax evasion or underreporting of taxable income.”

Grant asked Marquardo several times to provide proof that he had submitted an application for 501c3 status to the IRS.

According to DOJ spokesperson Kristina Edmunson, he finally provided the department with an incomplete IRS 1023 application, but no other documentation that he had sent it in.

“Other than Mr. Marquardo's statements that he sent in the application,” Edmunson said, “there is no other proof that he applied for IRS 501c3 status.”

Ultimately, Marquardo signed the settlement and paid the promised $4,063. He is already selling tickets to Scooperfest 2020, set to take place at Colwood Golf Center next summer. The website for the event says it is no longer a nonprofit.

Marquardo declined to comment for this story.

-- Lizzy Acker

503-221-8052 lacker@oregonian.com, @lizzzyacker

Subscribe to Oregonian/OregonLive newsletters and podcasts for the latest news and top stories.