March 31, 2006
Waynesville, Mo. — A Texas company that solicited donations from local businesses on the premise that they would benefit two area public service programs failed to turn over the donations to the intended recipients, according to a lawsuit filed today in Pulaski County Circuit Court by Attorney General Jay Nixon. The suit is seeking a preliminary injunction, restitution and penalties against WLM Enterprises/Sports Unlimited of Grand Prairie, Texas and defendants David and Wanda Little.
According to the suit, WLM solicited Pulaski County businesses in the summer of 2005 to donate money to purchase tee shirts that would be distributed to Pulaski County 911 or to students in the local DARE program. Most of the business were informed that some or all of the money paid to WLM, which ranged from $99.50 to $249.50, would also go to Pulaski County 911 or to the DARE program at local schools. All told, WLM collected $2,623 from the businesses.
WLM promised Pulaski County 911 up to 300 free tee shirts containing the Pulaski County 911 logo and its non-emergency numbers on the front of the shirts. As of February 2006, Pulaski County 911 had received 74 shirts which were of poor quality and did not contain their logo or their non-emergency numbers as promised. No DARE program or school system operating in Pulaski County has received any shirts. Neither Pulaski County 911 nor the local DARE program has received any money from WLM as represented to the local merchants.
WLM also billed several businesses which had never agreed to purchase advertising or to make a donation, threatening some with employing a collection agency to obtain payment.
"Any citizen or business solicited by a third party to buy advertising or to make a donation to a charity, school or government agency should always ask questions," Nixon said. "Many such entreaties are a scam. If you are interested in donating to a particular organization like your area 911 unit, or a school-related program like DARE, it is always best to contact these parties directly."
Nixon is asking that the court issue a preliminary injunction against the defendants preventing them from continuing to engage in their fraudulent and deceptive activities. The suit also asks the court to order the defendants to provide full restitution to all persons or businesses whom they defrauded; to order the defendants to pay a civil penalty of $1,000 per violation of the state Merchandising Practices Act; to order the defendants to pay to the state an amount of money equal to ten percent of the total restitution ordered against them; and to order the defendants to pay all court, investigative and prosecutorial costs in the case.
Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).
All media inquiries should be directed to Press Secretary John Fougere.
E-mail Phone: 573-751-8844 Fax: 573-751-5818