Representatives of the Estes Arts District say investigators believe the fraudulent check activity that affected the nonprofit is connected to a nationwide financial fraud scheme.
The investigation remains active, and no one in the Estes Valley is suspected of involvement, EAD co-president Dana Paiement said.
Paiement said local, state, and federal law enforcement and regulatory agencies have told the organization that the circumstances are consistent with schemes in which scammers conceal their identities and persuade others to deposit counterfeit checks and transfer the proceeds through various difficult-to-trace methods.
“Law enforcement has advised us that the circumstances are consistent with common internet-based financial fraud,” the organization announced in its September newsletter. “At this time, they have not indicated that anyone local is suspected of involvement.”
The Estes Arts District reported in August that someone had used unauthorized signatures to draw counterfeit checks on its accounts. The organization notified its financial institution, filed a police report, and began pursuing recovery through financial, law enforcement, regulatory, and legal channels.
The nonprofit has not disclosed how much money was involved or identified its former financial institution. Paiement said the board has made progress in its recovery efforts but cannot release details that could interfere with the investigation.
Since the fraud was discovered, the Estes Arts District has changed banks and is reviewing its financial oversight procedures. The board is also searching for a new treasurer with financial expertise.
Paiement said the organization has several potential candidates and will carefully vet whoever assumes the position. Another individual is handling the duties temporarily while the search continues.
Co-president Lars Sage said the organization’s new bank may recommend a staff member to serve as treasurer or in an advisory role.
The board has taken steps to strengthen its internal financial controls after discovering the fraudulent transactions. Paiement encouraged nonprofits, businesses, and individuals to monitor their accounts closely and question unfamiliar transactions immediately.
Since announcing the fraud last month, Paiement, the senior destination stewardship manager for Visit Estes Park, has heard from several people who have shared similar experiences.
“Unfortunately, this type of financial fraud is increasingly common and affects nonprofits, businesses, and individuals across the country,” the organization reported.
“Speaking about nonprofits being hacked, both the Art Center and the Fine Arts Guild also had their checking accounts hacked about a year or so ago, so this is a problem that seems to be prevalent dealing with nonprofits,” said Sage, who is on the board of the Fine Arts Guild of the Rockies and also manages the gallery for the Art Center of Estes.
Paiement and Sage emphasized that this incident affecting the EAD is unrelated to earlier arts organizations or proposals to raise money or secure property for an arts or performance facility.
The Estes Arts District board has formed a fundraising committee to develop events and other ways to help the organization recover financially. The nonprofit’s largest recurring fundraiser is the sale of alcoholic beverages at the annual Friends of Folk music festival held in Bond Park.
The organization expects to announce details about additional fundraising efforts as it works to recover from the loss.
To help the organization through the impact of the immediate loss, the Estes Park Artist Studio Tour provided a loan to the EAD. The EAD, a 501(c)(3), serves as the fiscal sponsor of the Estes Park Artist Studio Tour, a self-funded annual event.
Despite the time required to address the fraud, Paiement said the board remains focused on the district’s programs and its role in connecting artists, galleries, cultural groups, businesses, nonprofits, and residents.
Those efforts include the First Friday Art Groove, the newly established Arts and Culture Council, and planning for the Colorado Creative Industries Summit, which Estes Park is scheduled to host in 2028.
The Estes Arts District became a state-certified Colorado Creative District in October 2025 and received a $10,000 grant from Colorado Creative Industries that required a local match. A Colorado Creative Industries spokesperson confirmed to the Estes Valley Voice that it awarded the grant to the EAD.
The organization also received $21,000 in 2026 base funding from the Town of Estes Park. The town provides base funding to support the general operations and overhead of nonprofit entities that play a critical role in supporting the Town’s Strategic Plan.
Additionally, in March, the EAD and Visit Estes Park entered into a one-year, renewable memorandum of understanding to fund a full-time arts and culture program director position jointly. The EAD used the base funding to support its share of the position.
The partnership between the EAD and VEP includes shared financial support, collaborative grant writing, and coordinated outreach. The arts and culture program director is responsible for developing community programs, engaging visitors, and strengthening connections between local arts and culture, the visitor experience, and the creative economy.
Talia Siens, who was hired in April as the arts and culture program director, was accepted into Colorado Creative Industries’ Colorado Change Leader Program, a statewide initiative designed to develop effective and ethical leaders and strengthen Colorado’s creative communities and industries. According to the OEDIT website, the tentative dates for the 2026 program are Oct. 18-21.
Siens was nominated for the Governor’s Award for Rising Tourism Star, which recognizes individuals who have worked in Colorado tourism for fewer than five years and demonstrated leadership, commitment, and passion for the industry. The award will be presented during the Colorado Governor’s Tourism Conference, scheduled for Sept. 23-25 in Breckenridge.
EAD credited Siens with developing partnerships and helping establish the Arts & Culture Council, which is intended to bring more voices into discussions about the future of arts and culture in the Estes Valley.
EAD said it continues to work closely with Colorado Creative Industries, a division of the Colorado Office of Economic Development and International Trade, and considers its Creative District certification an important part of its future.
The organization plans to host a community open house with Colorado Creative Industries to gather ideas and encourage local participation in planning for the 2028 summit. A date has not been announced.
Paiement said EAD wants residents to remain involved as the organization works through the financial investigation and continues its programs.
“It’s a bump in the road, but we’ll get through it,” she said. “I’m optimistic and hope we’ll be reporting some good news to the community soon.”