CHICAGO (CN) – Three corporations abused their affiliations with the Amvets Service Foundation and the Juvenile Diabetes Research Foundation by falsely claiming they donated 70% of contributions to those charities, while actually taking 95% for overhead, including “six-figure salaries and six-figure bonuses” for bosses and “intimates,” a former executive claims in Federal Court.
William Gullickson claims the Village Discount Outlet, Mayo Inc., and Plaza Marketing Associates fired him for objecting.
Gullickson also sued Village Discount Outlet officer James Stinnett, and Mayo and Plaza Marketing officers Reginald Wright and William Ryan.
He claims the defendants “cloaked themselves with the names reputation and image of Amvets and JDRF” when they solicited and accepted donations of household goods at dropoff sites and from private homes.
“The defendants stated publicly to donors and members of Amvets and JDRF that, of the money generated from donations, 70% went to Amvets and JDRF and 30% went to overhead. When making these statements the defendants knew full well that the actual amounts of money that went to Amvets was less than 5% of the revenue generated and that the vast remainder, i.e. over 95% went to defendants for ‘overhead’ that includes lucrative contracts to their intimates, six-figure salaries and six-figure bonuses. For example, for each multi-wheel trailer that was filled with donated household goods for Amvets, Amvets received $200; for each multi-wheel trailer filled for JDRF, JDRF received $300; however, each trailer of household goods sold at VDO retail stores generated an average of $4,000.”
He claims the defendants pushed their services through telemarketers, and that for each pickup from a home, Amvets and JDRF “received a maximum of $4.30,” minus fees to Mayo and Plaza, regardless of the quality or quantity of each donation.
He claims they fired him when he objected.
Gullickson is represented by Edward Voci of Oak Park.