LAS VEGAS (CN) - Win 4 Charity, which wanted to run online sweepstakes for good causes, claims its CEO stole its money, bounced checks to charities, never paid the "winners" their prizes, stiffed staff for payroll, sold the office computers and pocketed the money, hid the office furniture, juggled the books, swiped its Internet domain names, and is trying to set up his own company with them. Win 4 Charity sued its ex-CEO John Kaspar and its ex-COO, Traci Kaspar, in Clark County Court.
Win 4 Charity and its corporate parent, W4C Marketing, say the company was launched on Oct. 1, 2008, with the promise that 60% of all donations to its online sweepstakes would go to charities, 20% would to go buy the prizes, and 20% would go to overhead. But it claims that by early November, Kaspar had bounced the company's first two checks to charities, for $5,000 each, announced that a college student had won the company's first big prize, a Honda Accord, but never delivered the car, and was missing payroll.
In an email, defendant Kaspar said, "All of the allegations in this article were false and the suit was filed with the intent of ruining my name only." He said he looks forward to dismissal of the action.
In the compaint, lead investor Ed Finger says he put $300,000 into the company, which allegedly received $900,000 in donations, though Kaspar allegedly has spent $1.4 million. The complaint alleges that Kaspar used corporate money as his private piggy bank, flying his daughter to Las Vegas from Spain, taking the family to San Diego, paying private school tuition for his children, and so on.
Win 4 Charity is represented by Mark Hutchison.
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