Conflict of Interest?

Dear forum members, here's a question for you:

Executive Director of a non-profit after-school program runs a for-profit events and promotions business on the side. Through the non-profit, E.D. secures a few dozen tickets for a major sports event, ostensibly for the youth served by the after-school program. E.D. offers each and every ticket to friends and business patrons using for-profit business e-mail listserv. The email communication, moreover, creates the impression that it is the E.D.'s business, not the non-profit, that is offering the free tickets. That is, E.D. appears to be using the free tickets given to the non-profit after-school program to promote his for-profit venture. Conflict of interest?

Most definitely a conflict of interest and unethical IMHO, but I am not a lawyer.