Attorney General's News Release

February 27, 2008

Nixon sues Independence-based Web site that misled consumers in soliciting donations supposedly for veterans

Kansas City, Mo. — The operator of a Web site that solicited donations it claimed would help homeless military veterans has been sued by Attorney General Jay Nixon for misrepresenting its non-profit status and other information to consumers. Nixon filed the petition today in Jackson County Circuit Court seeking a temporary restraining order, permanent injunction and civil penalties against RCT Development Association of Independence, which does business as Helping Our Heroes.

Nixon says the defendant’s Web site, www.helpingouramericanheroes.com, made several misrepresentations to potential donors, including:

Representing that it is a not-for-profit corporation, despite corporate filings with the Missouri Secretary of State’s Office revealing its actual status as a fictitious name registration rather a corporation;

• Representing that Helping Our Heroes is a tax-exempt charity, while filings with the Secretary of State’s Office indicate that the name Helping Our Heroes is a fictitious name registration other than a corporation, community chest, fund or foundation. Internal Revenue Service codes require tax-exempt charities to be either a corporation, community chest, fund or foundation;
• Representing to potential donors that Helping Our Heroes is a 501(c)(3) non-profit organization, a false claim that Nixon says helped persuade some businesses to give donations; and
• Inviting potential donors to contact an employee with the Attorney General’s Office to verify Helping Our Heroes’ status as a registered charity. Nixon says his office has never given the defendant permission to mention its name or the names of its employees on the Web site.

“Charities in Missouri have very specific rules they must follow to remain viable, and making multiple misrepresentations while soliciting for donations certainly violates those rules,” Nixon said. “These are the kind of problems that tend to make consumers lose confidence that their charitable contributions are truly going to their intended purpose.”

“It is offensive that any organization would misuse the good name of our veterans to prey upon others just to make a dishonest buck,” said Hal Dulle, Executive Director of the Missouri Veterans Commission. “Such people need to be pursued to the fullest extent of the law.”

Nixon added that while Missouri law does not regulate how much of the money raised in charitable solicitations must go to the charitable purpose, it was worth noting that the Helping Our Heroes Web site stated that 100 percent of the $8,344 it raised in 2007 was directly spent on fundraising or directly allocated for fundraising activities, as opposed to being spent on the charitable purpose.

Nixon’s lawsuit asks the court to issue a temporary restraining order against Helping Our Heroes to prevent continued violations of state consumer protection laws, including mentioning the Missouri Attorney General’s Office or its employees or forms in connection with the solicitation of charitable donations. Nixon is also asking the court to order the defendants to pay restitution, court costs and civil penalties of $1,000 for every violation of Missouri consumer protection laws.

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