Bryan Cohen Dec. 6, 2013, 7:30pm

LITTLE ROCK, Ark. (Legal Newsline) -- Arkansas Attorney General Dustin McDaniel filed a lawsuit Thursday against an Arizona organization that allegedly misled Arkansans into believing their donations would help the children of American veterans.

The Phoenix-based Children of Veterans Foundation allegedly diverted the clothing items donated by consumers to a for-profit company owned by one of the nonprofit's two directors.

Donna Renfroe and Randy Taylor, the operators of the Children of Veterans Foundation and the for-profit Give Back to Freedom LLC, allegedly used the donations for their personal benefit and financial gain.

"Our veterans put their lives on the line for our country and our freedom, and it is appalling to think that someone would exploit their service for personal gain," McDaniel said. "Not only that, but this company's actions harm legitimate charities that actually need and would put to good use the donations that consumers may provide."

Renfroe and Taylor allegedly violated the Arkansas Deceptive Trade Practices Act by using the donated items to support a for-profit company. The defendants also allegedly failed to register as charities or paid solicitors with McDaniel's office.

McDaniel's lawsuit seeks that the defendants stop any illegal practices and pay civil penalties, restitution and attorney fees and costs.

The Phoenix-based Children of Veterans organization is not affiliated with or related to an Arkansas corporation of the same name.

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