June 8, 2006
St. Louis, Mo. — Attorney General Jay Nixon today secured an extension on the freeze of assets of a St. Louis-based charity he is suing over its high-profile raffles. The amended preliminary injunction approved by the St. Louis County Circuit Court prevents Gateway to a Cure from transferring, spending, withdrawing or disbursing any of the money raised from its raffles until Sept. 10, 2006. The exception, Nixon says, is that Gateway will be able to continue to provide refunds to consumers who hold tickets for those raffles.
Nixon sued Gateway to a Cure last month, alleging that consumers who bought tickets for as much as $1,000 each were not given sufficient or timely information about when raffles would be held and that some raffles had been pending for years without a drawing. Gateway raffles have advertised prizes such as luxury homes and automobiles and college scholarships. The organization currently has four raffles pending, two of which began ticket sales in 2003.
Shortly after the lawsuit was filed, the court approved a consent preliminary injunction that prevented Gateway to a Cure from transferring, spending, withdrawing or disbursing any of the money raised from its raffles, except to provide refunds to consumers. The earlier freeze was scheduled to expire June 10.
As the lawsuit proceeds, Nixon said, his office's investigation into Gateway's advertising and ticket sales practices is continuing. Consumers who want to file a complaint against Gateway to a Cure should file a complaint with supporting documents with the Attorney General's Office. Complaint forms may be obtained online at www.ago.mo.gov or by calling the Consumer Protection Hotline at 800-392-8222.