Charity ‘scam’ to give back money | Funds collected in Issaquah, Sammamish, elsewhere

A Snohomish County couple who solicited on the Sammamish Plateau and at the Downtown Issaquah QFC, claiming to raise money for local kids, will give back thousands of dollars that never went to the charity.

June 30, 2014 6:04 pm

A Snohomish County couple who solicited on the Sammamish Plateau and at the Downtown Issaquah QFC, claiming to raise money for local kids, will give back thousands of dollars that never went to the charity.

“People put their trust in charities and abusing that trust is serious business,” said state Attorney General Bob Ferguson. “The Attorney General’s Office will investigate and hold accountable anyone who claims to be raising money for charity, but then pockets the funds.”

The state sued the couple last December to stop the unauthorized fundraising activity and just reached a settlement after months of negotiating with Michael W. Gannon and Amy D. Gannon and Knowledge for Kids (K4K), which also does business as “Kures for Kids.” Both were owned and operated by the Gannons.

In a stipulated judgment filed in court this week, the court ordered K4K and the Gannons to pay:

  • $36,200 in consumer restitution to the Attorney General’s Office; and
  • $91,500 in penalties, costs and reasonable attorneys’ fees – suspended as long as all of the defendants comply with the terms of the stipulated judgment.

The recovered funds will be used to benefit the public.

Also, as part of the agreement, the Gannons were required to dissolve K4K.

According to the Attorney General’s office, the Gannons claimed to raise money to support families of children with disabilities and to support other charitable organizations. The couple raised roughly $70,000 from the time they founded the organization until December 2013.

Of the roughly $70,000, only about $2,100 went to other charities, and K4K provided no direct support to families of children with disabilities. Instead, $36,200 went into the Gannons’ pockets, and the rest covered expenses such as paying commercial fundraisers.

In addition to dissolving K4K, the Gannons also are prohibited from:

  • Forming any new charities or commercial fundraising organizations;
  • Working for any charitable organization in any capacity requiring the handling of money or fundraising; or
  • Serving as fundraising counsel or consultants.