The Attorney General’s Office said it will recover about $36,200 from a Snohomish couple who claimed to be collecting funds for charity, but instead pocketed more than half of the money.
The AG’s Office filed a consumer protection complaint against Knowledge for Kids, which also does business as “Kures for Kids,” and its owners and operators, married couple Michael and Amy Gannon, in December.
According to the complaint, the Gannons used numerous deceptive practices to entice consumers to donate money to their charity, including claiming that they would provide direct support for the families of children with disabilities and dispense funds to other charities.
Although K4K raised about $70,000 from the public, only about $2,100 went to other charities, and K4K provided no direct support to families of children with disabilities, the AG said. Instead, $36,200 went into the Gannons’ pockets, and the rest covered such expenses as paying commercial fundraisers.
In a 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 attorneys’ fees -- suspended as long as all of the defendants comply with the terms of the judgment.
As part of the agreement, the Gannons were required to dissolve K4K. They are also prohibited from forming any new charities or commercial fundraising organizations, working for a charity in a position that would require the handling of money or serving as fundraising consultants.
The recovered funds will be used to benefit the public.