DENVER (Legal Newsline) - Colorado Attorney General John Suthers has announced a temporary restraining order against a for-profit company that allegedly deceived consumers into thinking they were donating money to a breast cancer charity.
In June, Suthers' office filed a lawsuit against Boobies Rock! Inc., the Se7ven Group, Say No 2 Cancer and Adam Shryock, the companies' owner. The temporary restraining order preliminarily bans the defendants from misrepresenting that they are charities or are authorities to raise funds on behalf of charities. The lawsuit seeks restitution, disgorgement of profits, civil penalties and other relief.
"Shryock misled thousands of consumers in Colorado and across the country into believing they were supporting breast cancer-related charities," Suthers said. "In reality, very little of the money collected went to legitimate cancer groups as Shryock tapped those funds to buy himself a BMW, subscribe to an online dating service, and pay his bar and cleaning service tabs."
Suthers' lawsuit alleges the defendants held promotions throughout the country, hired promotional models to take donations on behalf of Boobies Rock and claimed the company was raising money for breast cancer nonprofit groups. The lawsuit alleges the defendants did not gave the money raised to any charitable organizations until the organizations threatened to sue Shryock for fraud.
"Shryock passed through the absolute bare minimum to a series of legitimate nonprofit charities to keep his scheme alive," Suthers said. "Moreover, the IRS has no record of awarding tax-exempt status to a company he launched in January, Say No 2 Cancer. This case is an important example why consumers should be wary of unsolicited charitable appeals and do their homework before they give to any purported charity."
The defendants are temporarily enjoined from advertising or selling merchandise or collecting any money on behalf of themselves or other organizations while representing the funds will go to charitable causes. The defendants are also enjoined from establishing, founding, forming or operating any charity, making charitable solicitations and from using trade names to make any solicitations for charity.