OLYMPIA, Wash. (Legal Newsline) - Washington Attorney General Bob Ferguson announced a stipulated judgment on Friday against a Snohomish couple who allegedly claimed to be collecting funds for a charity before pocketing more than half of the money.
Ferguson's office filed a lawsuit in December against Michael and Amy Gannon and Knowledge for Kids (K4K), doing business as Kures for Kids. The Gannons allegedly used multiple deceptive practices to lure consumers into donating money to K4K, claiming they would provide direct support for families of children with disabilities and dispense funds to other charities.
Ferguson alleged that while K4K raised approximately $70,000 from the public, only approximately $2,100 went to other charities. K4K also allegedly provided no direct support to families of children with disabilities. Approximately $36,200 allegedly went into the Gannons' pockets while the rest was used to cover charity expenses.
"People put their trust in charities and abusing that trust is serious business," Ferguson said. "The attorney general's office will investigate and hold accountable anyone who claims to be raising money for charity, but then pockets the funds."
Under the terms of the stipulated judgment, the Gannons and K4K must pay $36,200 in restitution and $91,500 in penalties, costs and attorney fees. The $91,500 payment is suspended as long as the defendants comply with the terms of the judgment. The Gannons must dissolve K4K and are prohibited from forming new charities, working for charities or serving as fundraising consultants.