(DES MOINES, Iowa) The state is barring two charities from mailing sweepstakes-based solicitations to Iowans.
The Iowa Attorney General's Office says both appeared to benefit veterans, but investigators say they misled donors, and implied the recipient was on the verge of getting a big cash prize, as long as they completed a form, and sent in a donation.
One's called the Veterans Relief Network, based in Schereville, Indiana, the other is Healing Heroes Network of Palm Harbor, Florida.
Miller says the two companies appear to be unrelated, but both used prize-oriented solicitation tactics that violate Iowa laws protecting consumers from unfair and deceptive fundraising practices.
Miller says the solicitations included statements that no prize had yet been won, but the mailings misled consumers by conveying the opposite message.
The Veterans Relief Network (VRN) settlement is in the form of a written agreement called an Assurance of Voluntary Compliance. The Assurance notes that neither VRN nor Ignas admits to any wrongdoing.
The settlement requires VRN to make a refund to any Iowa donor who requests one, and to pay $25,000 to the state. An additional $10,000 payment is suspended for as long as VRN complies with the settlement terms.
Healing Heroes has been formally dissolved, so the settlement took the form of a consent judgment naming the operation’s Executive Director, Stacey Spiegel of Palm Harbor, Florida, as defendant.
The settlement required her to pay $1000 into a fund to make refunds for any Iowa donors who request one.