honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser
Posted on: Friday, October 7, 2005

Fundraiser's claim challenged

By Rick Daysog
Advertiser Staff Writer

The state attorney general's office cautioned donors that gifts to the Law Enforcement Officers Association are not tax deductible in spite of claims by telemarketers.

Attorney General Mark Bennett yesterday said the state will seek a $19,000 fine against the association's telemarketer, Island Printing & Publishing, and its head, Bryan Henry.

The state will seek to revoke Island Printing's registration to solicit money for local charities.

The state said Island Printing misled consumers when it told consumers that donations to the Law Enforcement Officers Association of Hawaii are tax deductible.

The association is registered as a nonprofit in Hawai'i but does not have federal tax exempt status.

Island Printing told potential donors that some of the money it raised for the association would be used to publish an anti-drug magazine that would be distributed to local schools, public libraries, and hospitals, the attorney general's office said.

The state alleged that Island Printing kept $76,000 or about 80 percent of the $95,000 it raised for the Law Enforcement Officers Association.

Thomas Dunn, attorney for Island Printing and Henry, said his client made some mistakes which will be rectified. Dunn said his client didn't intend to mislead donors.

Dunn declined to respond to the state's specific allegations, saying Island Printing may seek an administrative hearing to contest the state' revocation action.

The state said it intends to closely monitor the actions of fundraisers.

"We made it clear that we planned to scrutinize fundraising solicitation practices of solicitors for charities purportedly organized to support law enforcement, firefighters, the disable and veterans," Bennett said. "We caution donors that donations to the Law Enforcement Officers Association are not deductible as charitable donations."

The state's revocation notice comes as local police departments have warned consumers about fundraising efforts by the Law Enforcement Officers Association, which was founded in May by Kenneth Brandt.

Last month, Big Island Police Chief Lawrence Mahuna warned consumers that the Hawai'i County Police Department is not affiliated with the group.

In a news release yesterday, the attorney general's office said that Island Printing misrepresented that the Law Enforcement Officers Association received the approval of the attorney general's office and was endorsed by Lt. Gov. James "Duke" Aiona.

The attorney general's office said it found that the association did not produce its own magazine but distributed one on behalf of another organization.

Copies were given only to advertisers, elected officials and some public libraries, the state said.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.