State AG Sues Family for Massive $1.5 Million Charity Fraud Scheme
It's believed to be one of, if not the biggest, cases of charity fraud ever prosecuted in Washington state.
State Attorney General Bob Ferguson has filed a lawsuit against a Leavenworth man and his family for allegedly running and overseeing a variety of charities that basically stole $1.5 million that people thought they were donating for good causes.
Ferguson says Roy Bronsen Haueter and his family oversaw four different charity organizations, which sometimes used different names to gather donations. Although their organizations have been registered as non-profits with the state for some time, since 2012 it doesn't appear any money was given to charities. According to Ferguson:
"The Attorney General’s investigators have not found any evidence that the charities provided any direct benefit to children since at least 2012. The charities instead only have provided a small number of gift cards to a few nonprofit entities."
According to the lawsuit, the family used that money to pay themselves, and go on vacations.
They also claimed in their fund raising they were affiliated with Seattle Children's and Sacred Heart Hospitals (Spokane) but no such relationship exists, according to the investigation.
Ferguson is seeking a $2,000 penalty for each act of fraud, and demanding the $1.5 million be donated to actual charities under conditions monitored by the state.
You can read about these shocking charges in the lawsuit by clicking here.