Amid investigation, Lynnwood-based Hand Up Project ousts founder

EDMONDS — The Hand Up Project, a local nonprofit with the aim of helping people struggling with substance abuse and homelessness, ousted its founder Tuesday amid a fraud investigation.

The nonprofit noted its Board of Directors had “recently became aware of information which led to the organization’s termination of its relationship with Robert and Theresa Smiley.” Robert Smiley founded the organization. His wife Theresa Smiley was the treasurer, according to tax filings.

“After a thorough review — both internally and by external third parties — any actions by Mr. Smiley were solely his and had no relation or effect on any of our community offerings,” the organization wrote on its website. “While we are deeply saddened by these events, The Hand Up Project is now in a better position to execute its mission of affirming the inherent value of all people.”

What Smiley’s actions were remained unclear Wednesday. The nonprofit declined to comment further on the specific reason for Smiley’s exit.

“This is a really difficult time for our organization, board, and nearly 20 employees,” the organization wrote in an email. “Because of federal and state laws, we cannot discuss specific employee’s situations. What we will say, however, is that we are sincere in our mission … regardless of circumstances. This includes Mr. Smiley, especially in this difficult time. We are hoping Mr. Smiley receives the help he needs.”

The Hand Up Project and Smiley had been lauded for years for helping people struggling with addiction through sober housing. Smiley, sober from cocaine and previously homeless, had been an outspoken advocate in Snohomish County for people living with addiction and without housing. His work has been featured in The Daily Herald many times.

The Snohomish County Sheriff’s Office “received allegations of fraud related to this nonprofit,” spokesperson Courtney O’Keefe said in an email Wednesday. Detectives were investigating this week.

Smiley didn’t immediately respond to a request for comment Wednesday.

In a joint statement Wednesday, Lindsey Arrington, who often worked with Smiley through another nonprofit similar to The Hand Up Project, and Pat Slack, the former commander of the Snohomish Regional Drug and Gang Task Force, wrote they “will always support Robert and his unwavering commitment to giving people a hand up.”

“We are all human, and we may not always navigate struggles gracefully, but Robert Smiley is genuinely a servant leader through and through regardless of this outcome,” Arrington and Slack wrote. “When he is able, Robert will gladly speak on his own behalf with integrity and accountability. For now, we’d ask the community to pray for him and hold loving thoughts towards him. We appreciate The Hand Up Project’s continued support of Robert and Theresa and respect of their privacy. We hope that others will be respectful and supportive as well.”

The news came the same day the City of Edmonds canceled an agreement with The Hand Up Project, citing “recent information discovered regarding the organization’s founder.” A city spokesperson declined to comment further.

The $20,000 annual agreement signed Feb. 9 was for cleaning up homeless encampments and providing help to residents in need, public records show. Less than a week after the city publicly announced the contract, Edmonds backed out. No work had been done and no city funding was paid to the organization, according to officials.

In the past, elected officials applauded Smiley’s work. A local state representative called him one of the “heroes that actually make people believe in themselves.”

“We are recovering addicts and alcoholics ourselves. We know these people,” Smiley told The Herald in 2020. “Our whole focus is to hold their hand — walk them through all these processes.”

The Hand Up Project, based near Lynnwood in south Snohomish County, reported it had gotten over 1,000 people into drug treatment and disposed of over 10,000 needles in encampment cleanups. It has also managed emergency shelter motel rooms in Everett, providing case managers and connecting people with long-term housing. This program, called Respite, had secured permanent housing for nearly 90% of its clients, according to the organization.

In October, the nonprofit signed a contract with the City of Monroe to use federal funds to help homeless families in six rooms at a Monroe hotel, public records show. The two-year agreement was worth over $200,000.

“People want help and the help is there,” Smiley told The Herald last year.

Jake Goldstein-Street: 425-339-3439; jake.goldstein-street@heraldnet.com; Twitter: @GoldsteinStreet.