The Oregon Department of Justice has joined an ongoing civil investigation into the financial history of the Oregon Coast Lab Band.

Lab Band President Ray Sanford said the group already was considering whether to conduct an internal audit when it was approached by the state. Problems arose over the summer when board members discovered discrepancies in the Lab Band bookkeeping.

Since then, the founder, Greg Young, stepped down from his duties as music director. Young and his wife, Patricia Young, previously handled the organization’s accounts.

The Youngs have had four small claims cases filed against them in Coos County in 2007 and 2008. One of the claims filed in October 2007 listed the Lab Band and was in the amount of $1,135, court records show. The claim was listed as fully satisfied in March of this year. The other three resulted in judgment liens.

Department of Justice spokesman Jake Weigler said the agency’s charitable activities division is in the preliminary stages of the audit investigation. Typically in cases like this, the department looks into whether organizations are handling finances responsibly and in accordance with Oregon law.

“Unfortunately we are not far enough along yet to comment,” he said.

Weigler said he doesn’t know how long the investigation might take. Once completed, the agency likely will offer advice to limit the Lab Band board’s liability. The North Bend Police Department also is involved, Sanford said. Police Chief Steve Scibelli said people brought in complaints and the department has started its own investigation.

Previously, Sanford has said the Lab Band has a budget of about $50,000 annually, with no paid positions. The organization’s board of directors has not described the financial irregularities that have prompted the investigations.

Members pay $10 a month to participate, with additional funds coming from donations, performances and sales of CDs and DVDs. There are about 100 playing members spread between three bands of varying skill levels.

Mike Turner, Southwestern Oregon Community College’s band director, has temporarily stepped into the top spot of helping to direct the Evolution band. Other local music teachers also have been helping out, Sanford said.

While the investigation is ongoing, the Lab Band organization’s bands still are performing. Sanford said the group ultimately wants to be able to hire a full-time director. To do so, it must gather donations and obtain grants. Paying for a $10,000 audit wouldn’t necessarily help that process, he said. The Department of Justice will complete an audit as part of its investigation.

Sanford said the group hopes to have a permanent music director in place by the end of the year at the earliest.