Saturday, June 28, 2025

Formal Complaint Alleges Systemic Conflicts of Interest at The Assembly, DGI, and CFGG

GREENSBORO, N.C. June 28, 2025 — A detailed formal complaint filed by government watchdog George Hartzman accuses The Assembly, a North Carolina-based news outlet, of systemic conflicts of interest involving its Greensboro coverage, funders, and local institutions including Downtown Greensboro Inc. (DGI) and the Community Foundation of Greater Greensboro (CFGG).

The complaint names The Assembly’s Greensboro editor Joe Killian, his wife Amanda Lehmert Killian, and multiple institutions whose financial and professional entanglements allegedly compromise the outlet’s ability to report independently on local government and economic power players.

Allegations of Conflict: Marriage, Money, and Media

At the heart of the complaint is Joe Killian, a veteran journalist who previously worked for the News & Record. Killian is married to Amanda Lehmert Killian, who served as a Senior Communications Specialist for the City of Greensboro for eight years under Mayor Nancy Vaughan, who served on DGI's board of directors. Amandda also held a leadership position with the Guilford Green Foundation while Vaughan was Executive Director, a nonprofit that received a $2,500 sponsorship from DGI earlier this year, paid via CEO Zack Matheny’s taxpayer funded credit card.

DGI used taxpayer funds to provide gifts and favors to public officials and contractors, potentially violating N.C. Gen. Stat. § 133-32 (gifts and favors regulated) and N.C. Gen. Stat. § 138A-32 (State Ethics Act). These gifts were not reported, suggesting willful concealment and potential violations of 18 U.S.C. § 201 (federal bribery) and N.C. Gen. Stat. § 14-217 (state bribery).

Hartzman argues that these connections, combined with Killian’s relationships with city officials and prior affiliations with open government groups, create an environment ripe for bias—one in which scrutiny of DGI and city government is systematically avoided.

A Closed Loop of Influence?

More broadly, the complaint paints a troubling picture of a media ecosystem influenced by those it’s supposed to cover. The Assembly receives funding through the Greensboro Community Journalism Fund, hosted by CFGG. CFGG itself is a financial partner of DGI and is led by Walker Sanders, who appears on DGI’s internal expense records as the recipient of multiple meals purchased with public funds.

According to the 23-24 DGI ledger obtained by Hartzman on May 21, 2025, Matheny’s DGI credit cards were used three times between August 2023 and February 2024 to purchase meals labeled as meetings with Sanders—totaling $279.24. Meanwhile, CFGG funds both DGI and The Assembly's Greensboro coverage, raising serious concerns about journalistic independence and potential “excess benefit transactions” under IRS rules for nonprofits.

“This isn’t journalism, it’s a closed loop of mutual backscratching,” said Hartzman.

“Taxpayer money flows to DGI. DGI spends it on influencers like Sanders. Sanders' network funds The Assembly, and then The Assembly runs interference for DGI. The public is left misinformed.”

DGI’s expenditures, funded by city contracts, include questionable uses of taxpayer money, potentially constituting N.C. Gen. Stat. § 14-90 (embezzlement of public funds) and IRS Private Benefit Doctrine violations for 501(c)(6) organizations.

Questionable Reporting and Correction Requests

Hartzman also accuses The Assembly of misrepresentation and failure to meet basic journalistic standards in its coverage of his efforts to uncover irregularities at DGI. He specifically takes issue with statements in Joe Killian’s June 2025 article, “A Conflict Over Conflicts,” including a claim that “none of that was true” in reference to emerging allegations against DGI.

“That conclusion is not supported by facts and presumes the outcome of an unresolved situation,” Hartzman wrote in a June 27 letter to The Assembly. “The financial records are real. The program existed in secret. The lack of accountability is evident.”

Further, he alleges that The Assembly’s reporter Gale Melcher failed to contact him for comment despite referencing him directly in a recent article about DGI’s controversial homeless relocation program involving Greyhound bus tickets. Records show that 32 ticket purchases were made using DGI’s credit card—before the program had any public oversight.

Institutional Silence, Public Trust Eroded

Hartzman argues that The Assembly’s refusal to acknowledge or correct these issues is part of a broader pattern of journalism serving power rather than holding it accountable.

“This is how power protects itself—by attacking those who ask questions, dismissing evidence without examination, and manufacturing narratives to discredit critics,” he wrote.

The complaint also highlights The Assembly’s founder, Kyle Villemain, and his background in strategic communications. Hartzman argues that Villemain’s dependence on maintaining relationships with North Carolina’s nonprofit and political elites further undermines the outlet’s claim to editorial independence.

Demands for Accountability

Hartzman is requesting formal corrections to past reporting, transparency about funding sources, and a commitment from The Assembly to avoid conflicts of interest in its coverage of DGI, CFGG, and Greensboro’s city government.

The Assembly has not yet publicly responded to the complaint.

Hartzman says he has filed formal complaints with the City of Greensboro, The State Ethics Commission, Auditor, Local Government Commission, North Carolina Secretary of State’s Lobbying Compliance Division, IRS and FBI regarding the DGI ledger and related issues. He maintains that watchdog efforts like his are essential when traditional journalism fails.

“The public deserves better than sanitized press releases masquerading as news,” he said. “We need a press that investigates, not one that protects the powerful.”