Is this Legal?

A lady with a major crush on a celebrity race car driver forms a VA non-profit corporation (NOT registered as a 501c3) to raise money for the Celebrity's charitable foundation.

The lady's nonprofit SPONSORS (i.e. pays for parts) for a local race car driver, who is also listed as the "Financial Officer" on her non-profit's board of directors (according to the VA Corporations Commission). The local racer then (supposedly) donates his winnings BACK to the nonprofit, and talks several racing organizations into donating money, holding "charity" races for her nonproft, donating "penalty" monies to the nonprofit, etc. They then SUPPOSEDLY make donations back to the celebrity's nonprofit, but these folks won't respond to requests for information regarding their financial expenditures, so we can't tell whether or not they're on the up and up.

What to do?