The state has reached a settlement with a not-for-profit it accused of misleading donors, Arkansas Attorney General Leslie Rutledge announced Friday.
The Arizona-based Children of Veterans Foundation solicited clothing donations from Arkansans with large metal boxes in retail parking lots that said "GIVE BACK TO THOSE WHO PROTECT OUR FREEDOM!" according to a consent judgment.
However, the operation was run by Give Back to Freedom LLC, a for-profit enterprise, and clothes and other goods placed in the donation bins were not provided to either veterans or their children, according to findings of fact that both the state and the defendants agreed to.
The bins were placed in Northwest Arkansas.
"Unfortunately, there are bad actors like the Children of Veterans Foundation that will exploit Arkansans' generosity for their own personal gain," Rutledge said in a news release, "As the State's top attorney, I will not stand for this and will continue to hold these organizations accountable for their actions."
The defendants in the lawsuit were Donna Renfroe and Randy Taylor, both of Arizona, Children of Veterans Foundation and Give Back to Freedom LLC. Renfroe and Taylor are the directors of the foundation. Taylor is the sole shareholder in Give Back to Freedom LLC.
The state said the defendants were in violation of the Arkansas Deceptive Trade Practices Act.
Under the terms of the settlement, Children of Veterans Foundation and Give Back to Freedom LLC agreed to dissolve and cease all operations. Renfroe and Taylor agreed to cease all charitable solicitation activities directed at Arkansans.
The defendants will collectively pay the state $5,000 to cover the investigation and prosecution costs.
If any violation of the settlement occurs within five years, the foundation will be responsible for $50,000 plus an additional $100,000 in civil penalties, according to a news release.
Metro on 09/10/2016