State fines fund-raiser
An isle man admits keeping 80 percent of donations to charity
The state Attorney General has suspended the license of a solicitor for charitable organizations, alleging he broke tax and disclosure laws, wrongly told donors deductions to the Law Enforcement Officers Association of Hawaii were tax-exempt and kept 80 percent of the donations.
Bryan Henry, owner of Island Printing and Publishing, faces $19,000 in fines but says many of the state's allegations are unfounded, and intends to appeal them in a hearing tomorrow. He admits he made mistakes in filling out paperwork but insists they were not malicious.
"I want to comply. I'm not out to cheat anybody," Henry said yesterday in a phone interview. "I'm very shocked that they suspended my license. It's crushed me. I don't make that much money off this whole thing."
He says it is a common practice for solicitors to keep 80 percent of charitable donations to cover wages and operational expenses.
Henry has also kept 80 percent of solicited funds for the Hawaii State Sheriff Association and the Pop Warner Football League, he said.
Meanwhile, state Attorney General Mark Bennett warned residents that donations to the Law Enforcement Officers Association of Hawaii were not tax- deductible, as Henry's telemarketers had allegedly advertised.
The charitable organization does not have tax-exempt status.
"Practices like this discourage good philanthropy," Bennett said in a news release. "We made it clear that we planned to scrutinize fund-raising solicitation practices of solicitors for charities purportedly organized to support law enforcement, firefighters, the disabled and veterans."
In addition to misrepresenting the law enforcement association, Bennett alleges that Henry's company:
» Told donors that the organization is endorsed by Lt. Gov. James "Duke" Aiona, and has used Aiona's name in endorsements without his consent.
» Got funds for the charity by telling residents donations would go to an anti-drug magazine which would be distributed in schools, libraries and hospitals. The magazine has not been published, but Henry says that is because the association has only been around for four months. He said he had every intention to put together and distribute the magazine.
» Disabled its caller identification in violation of the federal Trade Commission's Sales Rule.
» Failed to deposit funds in an account controlled by the charity within five days of their receipt.
» Did not disclose in its contract with the association that Island Printing and Publishing does not have custody of contributions.
Henry said he is negotiations with the state attorney general's office and is working to reduce his fine and regain his solicitor's license. He has been a solicitor for decades but opened his business in 2003.