McKenna Sues Two
Western Washington
Organizations for Charity Violations
|
Attorney General
Rob McKenna today announced lawsuits against
Veterans of Western Washington, Blind
Children Services of Puget Sound and four
individuals connected with those
organizations.
“The defendants,
most of whom live in Snohomish County,
illegally solicited donations under numerous
names even after the Secretary of State’s
Office canceled their registrations,”
McKenna said. “Washington law requires that
charities register with the Secretary of
State and provide certain financial records
so consumers can learn more about how their
donations will be spent before deciding to
contribute.”
The Attorney
General’s Office Consumer Protection
Division filed two suits Thursday in
Snohomish County Superior Court, seeking
orders to stop the defendants from
soliciting in Washington. The office is also
requesting penalties of up to $2,000 per
violation as permitted by the Consumer
Protection Act and restitution for any
consumers who may have given money to the
unregistered charities. |
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Rob McKenna
WA St. Attorney General |
Robert
Melbourne Shay, also known as R.M. Fuka, of Edmonds, is
a defendant in both cases. Michael Joseph Shay, of
Edmonds, and Marcello Manuel Graniel, of Guam, are
charged in connection with the Veterans of Western
Washington suit. Darin Anthony Dewitt, of Everett, is
charged in connection with the case against Blind
Children Services.
“The Shays and Graniel have a
long history of soliciting charitable contributions in
Washington,” said Senior Counsel Shannon Smith. “They’ve
assumed a plethora of identities related to causes that
would appear to benefit veterans, children and domestic
violence victims. Many of the charities they solicited
for were not registered with the state. They also
claimed to represent organizations they weren’t
affiliated with.”
The three are involved in
Veterans of Western Washington. Graniel was the
organization’s president from at least July 2002 until
Dec. 18, 2005, during which time the organization
operated as a nonprofit corporation. Immediately
thereafter, it began operating as a sole proprietorship
in Lynnwood and is owned by Robert Shay and Michael
Shay.
Prior to forming Veterans of
Western Washington in 2002, they solicited donations
under the name Washington State Veterans League.
Washington State Veterans League failed to renew its
charitable organization registration, prompting the
Secretary of State’s Office to cancel its registration
on Dec. 17, 2002.
The state’s suit charges
Veterans of Western Washington, the Shays and Graniel
with violating the state’s Charitable Solicitations Act
and Consumer Protection Act. They are accused of
soliciting donations without registering with the
Secretary of State, misrepresenting charities are
registered, soliciting contributions under the names of
other entities, failing to provide required disclosures
to potential donors, and failing to maintain required
financial records.
The Attorney General’s Office
alleges the defendants solicited donations as recently
as April 2006, even though the Secretary of State
canceled Veterans of Western Washington’s charitable
organization registration on Oct. 26, 2004. The
registration was revoked because the defendants
solicited donations under other names that had not been
registered with the state, including Children’s Cancer
Alliance, Hospitalized Children’s Society and Coalition
Against Domestic Violence.
They also are accused of
solicited donations under the names Family Services of
Puget Sound and Handicapped Children’s Services. Smith
said those organizations were already registered with
the Secretary of State’s Office but were in no way
connected to the defendants.
The Attorney General’s Office
served a subpoena on Veterans of Western Washington, the
Shays and Graniel in May 2005, requesting copies of
certain financial records. The Shays claimed they had no
such records.
The other suit brings charges
against Blind Children Services of Puget Sound; its sole
proprietor, Dewitt; and Robert Shay, who manages the
organization’s finances. They are accused of soliciting
donations without registering with the Secretary of
State, misrepresenting charities are registered, and
failing to provide required disclosures to potential
donors.
Blind Children Services of
Puget Sound has conducted business from several
addresses in Lynnwood. The organization was also
authorized to solicit donations using the names
Abandoned Children’s Foundation, American Blind
Children’s Council, Handicapped Children’s Outreach, and
several related names.
Blind Children Services of
Puget Sound was registered as a charity in Washington
from April 9, 2003, until May 6, 2005, when the
Secretary of State’s Office canceled the registration
because the organization failed to renew. The Attorney
General’s Office alleges the defendants continued to
solicit donations until at least March 2006.
Consumers who were solicited
for donations by Veterans of Western Washington or Blind
Children Services of Puget Sound can file a consumer
complaint with the Attorney General’s Office online at
www.atg.wa.gov
or call 1(800)551-4636.
To confirm that a charity is
registered in Washington, call the Secretary of State’s
Charities Information Hotline at (800)332-4483 or search
online at
www.secstate.wa.gov/charitiesate.wa.gov/charities
.
Additional materials:
Veterans of Western - Complaint
Blind Children Services - Complaint