STATE OF FLORIDA OFFICE OF THE ATTORNEY GENERAL DEPARTMENT OF LEGAL AFFAIRS ASSURANCE OF VOLUNTARY COMPLIANCE

Transcription

1 STATE OF FLORIDA OFFICE OF THE ATTORNEY GENERAL DEPARTMENT OF LEGAL AFFAIRS IN THE INVESTIGATION OF: THE VETERANS SUPPORT ORGANIZATION, INC., and RICHARD VAN HOUTEN, JR., Respondents. ASSURANCE OF VOLUNTARY COMPLIANCE 1. PURSUANT to the provisions of Chapter 501, Part II of the Florida Statutes, Florida's Deceptive and Unfair Trade Practices Act, the Office Of The Attorney General, Department Of Legal Affairs (hereinafter referred to as the "Department"), caused an investigation to be made into certain acts and practices of THE VETERANS SUPPORT ORGANIZATION, INC. (VSO) and RICHARD VAN HOUTEN, JR. (Van Houten) (hereinafter, "Respondents"). 2. VSO is a Rhode Island non-profit corporation with its principal place of business at 4245 SW High Meadows Ave., Palm City, FL J. Van Houten is an individual with a listed address of 539 S.W. Lost River Road, Stuart, FL Respondents are prepared to enter into this Assurance of Voluntary Compliance (hereafter referred to as the "A VC") without an admission that Respondents violated Florida=s Deceptive and Unfair Trade Practices Act or any other law and solely for the purpose of resolution of this matter with the Department. Page 1of12 lnitia~1\j\r

2 5. Pursuant to Section (6), Florida Statutes, the Department agrees to accept this A VC in termination of its investigation as to Respondents solely as to the acts and practices that were the subject of the investigation 6. Stipulated Facts. The Department and Respondents hereby agree and stipulate to the following: a. During the time frame beginning at least November 2005 through the present, Respondents have engaged in the business of soliciting donations from consumers in Florida and elsewhere in order to provide financial support and work programs for financially distressed and/or homeless veterans. b. The Department has investigated allegations that, when promoting its organization and soliciting donations from the general public, Respondents have misrepresented the amount and type of financial and non-monetary support that it provides to veterans. Respondents deny these allegations. 7. This AVC is based upon the stipulated facts set forth herein. The Depaiiment shall not be estopped from taking further action in this matter should the facts described herein be shown to be incorrect in any material way or should this AVC not be complied with in full by Respondents. The parties agree that this A VC has been entered into based on the truthfulness of the information provided by Respondents. 8. Definitions. "Clear and Conspicuous" (including "Clearly and Conspicuously") means that a statement is made in a manner readily noticeable and understandable to the persons to whom it is directed. To determine whether a statement is Clear and Conspicuous, factors to consider include: Page 2of12 In itial~

3 a. whether it is of sufficient prominence in terms of sound and speed, font, size, placement, color, contrast, and duration of appearance, as compared with accompanying statements, claims, tem1s, or representations, so that it is readily noticeable, understandable, and likely to be heard or understood by a reasonable person ; and if written or conveyed electronically, the terms are not buried on the back or bottom, or in umelated information or placed on a portion of the page that a reasonable person would not think contained significant information; b. whether it is located sufficiently near any other statement that it clarifies, modifies, or explains, or that clarifies, modifies, or explains it; c. whether it is presented to the person(s) to whom it is directed in a coherent and meaningful sequence with respect to other terms, representations claims or statements being conveyed; d. whether it contradicts, or renders confusing or ambiguous, any other statement, or appears to be inconsistent with any other statement; e. whether, if it is oral, it is at an understandable pace, tone and volume as the sales offer, or, if not oral, it appears for a duration sufficient to allow viewers to have a reasonable opportunity to notice or read, and is free of distractions that compete for the attention of the consumer; f. whether it is presented in such a way as to be free of distractions, including but not limited to sound, graphics, text or other offers that compete for the attention of the consumer; and Page 3of12 Initials~~

4 g. whether, in advertising on the Internet, it is made on the same page as any other term, statement, claim or representation that it modifies, and either above the fold or Clearly and Conspicuously referenced or linked to a location below the fold. 9. Respondents agree and stipulate that they will cease, desist and are hereby barred, directly as well as indirectly through representatives, agents, employees, successors, assigns, independent contractors or any other person who acts under, by, through, or on behalf of Respondents, from marketing, advertising, promoting or soliciting donations in the State of Florida through the use of any false or misleading representations. 10. Respondents, including their representatives, agents, employees, successors, assigns, independent contractors or any other person who acts under, by, through, or on behalf of Respondents, directly or indirectly, or through any corporate or other device, shall: a. Comply with the Florida Deceptive and Unfair Trade Practices Act, Chapter 501, Part II, Florida Statutes; b. Comply with Florida Statutes Chapter 496, pertaining to Solicitation of Funds; c. Comply with Florida Statutes Chapter 617, pertaining to Corporations Not for Profit; d. Provide Clear and Conspicuous oral and written disclosures to consumers in the State of Florida when soliciting donations, including an accurate portrayal of the financial and non-monetary support that they provide to veterans (or veterans organizations); e. Provide to veterans (or veterans organizations) the exact financial and nonmonetary support that is represented to potential donors when soliciting donations; f. Solicit contributions only for the purpose expressed in the solicitation for contributions, or in Respondents' registration statement, and may apply contributions only in a manner substantially consistent with that purpose; g. Maintain records of contributions or grants made to any and all veterans (or veterans organizations) and timely update all marketing materials and websites to accurately reflect such contributions or grants; Page 4of12 Initials~~

5 h. Not make any claims to provide housing assistance to veterans or otherwise; i. Not make any false or misleading representations when soliciting donations from consumers; J. Prohibit non-veteran employees from wearing camouflage attire when soliciting donations, except that olive drab attire worn by non-veterans shall not constitute a violation so long as accompanied by proper identification as indicated below; and k. Require non-veteran employees to wear double-sided identification badges labeled "non-veteran" when soliciting donations. 11. Respondents shall preserve and retain all relevant business and financial records relating to the acts and practices at issue in this A VC and other information reasonably sufficient to establish compliance with the provisions of this A VC for five (5) years from the date of this A VC, and shall provide reasonable access to such documents and information to the Department upon request. 12. Every six (6) months for a period of five (5) years from execution of this AVC by the Department, Respondents shall provide updates to the Department detailing VSO's fundraising and charitable solicitation efforts for the prior six (6) months, including: a. Weekly timesheets indicating the name of each employee, number of hours worked, dollar amounts raised, incentives earned, and amounts received as compensation; b. Contact information for each employee; c. Any and all reports prepared by any outside accountant(s); and d. Documentation of any contributions or grants made to third parties, including the date(s), total contribution amount(s), and name and contact information of the recipient organization(s) or individual(s). 13. Within seven (7) days after execution of this AVC by the Department, Respondents shall designate at least one telephone number and , physical, and postal address as points of contact, which the Department may use to communicate with Respondents, and shall notify the Department within seven (7) days of any changes to this contact information. Page 5of12 Ini t i a ls~

6 14. Respondents shall make the terms and conditions of this A VC known to any managers, members, officers, directors, employees, agents, independent contractors or anyone else acting for or on behalf of Respondents. The obligations imposed by this A VC are continuing in nature and shall apply to Respondents' successors and assigns as well as any and all new officers, employees, agents, representatives or any other persons who become engaged in the business or activities of Respondents. 15. Respondents shall not affect any change in the form of doing business or the organizational identity of any of the existing business entities or create any new business entities as a method of avoiding the obligations and terms and conditions set forth in this A VC. 16. The original A VC bearing the notarized signatures of Respondents will be delivered to the attention of Assistant Attorney General Sarah Shullman, Office of the Attorney General, Consumer Protection Div., 1515 N. Flagler Dr., Ste 900, West Palm Beach, FL It is hereby agreed by the parties that any failure to comply with the terms and conditions of this A VC by Respondents is by statute prima facie evidence of a violation of Chapter 501, Part II, Florida Statutes, and will subject Respondents to any and all civil penalties and sanctions authorized by law, including attorneys' fees and costs. In the event that a court of competent jurisdiction makes a determination that a violation of any provision of this A VC has occurred, then the Respondent(s) who failed to comply with the terms and conditions of this AVC shall be jointly and severally liable for civil penalties, as well as any additional attorneys' fees and costs, and other relief as may be allowed by law. 18. The Department's agreement to this AVC is expressly premised upon the truthfulness, accuracy and completeness of Respondent Richard VanHouten's representations to the Department and petition filed with the U.S. Bankruptcy Court for the Southern District of Page 6of12 Initials )2,~

7 Florida, signed under penalty of perjury on June 26, Respondent' s bankruptcy petition includes material information upon which the Department relied in negotiating and agreeing to this A VC. If the Department learns that Respondent's bankruptcy petition failed to disclose any material asset or materially misstated the value of any asset, or made any other material misstatement or omission, such disclosure(s) or non-disclosure(s) will be deemed to be a failure to comply with the terms and conditions of this AVC and Respondents shall be liable for any and all civil penalties, fees and costs as described in paragraph 15, above. 19. Upon the expiration of 91 days following the latter of full execution of this AV C and/or receipt of all payments due hereunder from the Respondents, provided the Respondents have fully and completely performed all obligations owing to date, the Department shall close its civil investigation into the acts and practices of Respondents at issue herein, provided that such closure shall be without prejudice to any other remaining investigation(s) that may otherwise exist as to Respondents or any other entities. 20. The effective date of this A VC shall be the date of its execution and delivery by the Department. Acceptance by the Department shall be established by the signature of the Katherine Kiziah, South Florida Bureau Chief. 21. It is further agreed that facsimile copies of signatures and notary seals may be accepted as original for the purposes of establishing the existence of this agreement, and this A VC may be executed in counterparts the compilation of which shall constitute the full and final agreement. 22. Notice to any of the parties to this AVC as may be required shall made by certified mail and at the addresses set forth below unless any party notifies the other parties in writing of another address to which notices should be provided. Page 7of12 Initials~

8 To Respondents: Richard Van Houten, President 539 S.W. Lost River Road Stuart, FL To the Department: Assistant Attorney General Sarah Shullman Office of the Attorney General Consumer Protection Division 1515 N. Flagler Drive, Suite 900 West Palm Beach, FL Nothing in this A VC is to be construed as a waiver of any private rights of any person or release of any private right~, causes of action, or remedies of any person against Respondents or any other person or entity. 24. It is a condition of each of the Department's obligations under this AVC that the Respondents have fully and timely performed all of Respondents' obligations previously due under this AV C. 25. This A VC is the final, complete, and exclusive statement of the parties' agreement on the matters contained in this A VC, and it supersedes all previous negotiations and agreements. Other than any representation expressly stated in this AVC, the parties have not made any representations or warranties to each other, and neither party's decision to enter into this A VC is based upon any statements by the other party outside of those in this A VC. 26. It is further agreed that the parties jointly participated in the negotiation of the terms of this AVC. No provision of this AVC shall be construed for or against any party on the grounds that one party had more control over establishing the terms of this A VC than another. Page 8of12 Initials~

9 27. By my signature, I hereby affirm that I have authority to execute this AVC on behalf of the party indicated and, to the extent I am acting in a representative capacity, I am acting within the scope of my authority as corporate representative, and that by my signature I am binding the party/parties indicated to the terms and conditions of this A VC. SIGNATURES ON FOLLOWING PAGE(S) Page 9of12 Initials \2\f~

10 THE VETERANS SUPPORT ORGANIZATION, INC. Agreed to and signed this day of, 2015, by the below-stated person who stated and affirmed as follows: BY MY SIGNATURE I hereby affirm that I am acting in my capacity and within my authority as the President of THE VETERANS SUPPORT ORGANIZATION, INC., and that by my signature I am binding THE VETERANS SUPPORT ORGANIZATION, INC., to the terms and conditions of this AVC.. By.. RiC;dV an :OUten, President THE VETERANS SUPPORT ORGANIZATION, INC., STATE OF FLORIDA COUNTY OF MARTIN ) ) BEFORE ME, this I l day of Ai.JS\-Lld-, 2015, an officer duly authorized to take acknowledgments in the State of FJlorida, personally appeared Richard Van Houten, who acknowledged before me that he executed the foregoing instrument for the purposes therein stated. J;,A 0./.b,-<A (print, type or stamp commissioned name of Notary Public) MARCELLA A sc1monover ;1_p..RY A (S'a NOTARY PUBLIC := ~xpire51 ~ Mll~015 ~STATE OF ~ LORIDA ~ G6rnm# EE Personally known or Produced Identification v (check one). Type of Identification Produced: fl.- O~lu -e Page 10of12 Initials 1'.M--

11 RICHARD VAN HOUTEN Agreed to and signed this Jl_ day of 'f1vv<1k 0 stated and affirmed as follows:, 2015, by the below-stated person who BY MY SIGNATURE I hereby affirm that I am acting in my individual capacity, and that by my signature I am binding myself, individually, to the terms and conditions of this AVC. By:~~0;~ Richard Van Haute~ ST A TE OF FLORIDA COUNTY OF MARTIN ) ) BEFORE ME, this /I day of ~Pl{tt, 2015, an officer duly authorized to take acknowledgments in the State of Fforida, personally appeared Richard Van Houten_y?who acknowledged before me that he executed the foregoing instrument for the purpqses therein stated. {~:4Ah{~ / FfcfTARY PUBLIC (print, type or stamp commissioned name of Notary Public) MARCELLA A. Set!OONOVER NOTARY PUBLIC Personally known or Produced Identification V- (check one). Type of Identification Produced: k 0~,C Page 11of12 Initials(~

12 FOR THE omce OF THE ATTORNEY GENERAL ShuJlman Assistant Attomey Iatli.eral Florida Bar No... Q Deice of the Attorney General 1515 North Flagler Drive, Suite 900 West Palm Beach, FL ~1his ~& dayof ~1,2015 South Florida Bureau Chief, Consumer Protection Division Office of the Attorney General 1515 North Flagler Drlv~ Suite 900 West Palm Beac~ FL Page llofl2 Initials~