Veterans group settles fundraising lawsuit

Chris Rizo Jul. 11, 2008, 1:17pm

Dustin McDaniel (D)

LITTLE ROCK, Ark. (Legal Newsline)-Arkansas Attorney General Dustin McDaniel on Friday said his office has reached a settlement over a lawsuit he filed against the American Veterans Coalition.

The Democratic attorney general sued the Gig Harbor, Wash.-based group in December 2007. The organization was accused of misleading Arkansans when soliciting for donations.

In court papers, McDaniel said less than one-percent of the donations raised were actually used to support veterans and no assistance had been given to Arkansas veterans.

The settlement, filed in Pulaski County Circuit Court, stipulates that American Veterans Coalition will pay the Attorney General $33,749, which is the total amount of money donated by Arkansas residents.

The funds will be redirected to an organization in Arkansas that provides assistance to veterans, the attorney general's office said.

The American Veterans Coalition and its operators will also be barred from soliciting donations in Arkansas for five years, and after that period they will only be able to seek donations in the Natural State if at least 60 percent of the funds that are raised go directly toward helping veterans.

"We are glad that through our efforts we were able to fulfill the desires of Arkansans who donated to this organization, and that we can continue to support those who have given so much to defend our country," McDaniel said in a statement.

From Legal Newsline: Reach reporter Chris Rizo by e-mail at

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