SALEM, Ore. (CN) – An Oregon man bilked people of $690,000 through his “veterans’ assistance” programs, Oregon’s attorney general says. The state claims that Gregory Warnock dba the Oregon War Veterans Association, the Military Family Support Foundation and LNP Consultants ran “an elaborate scheme designed to line his own pockets.”
Warnock controlled all three defendant organizations, which “were little more than corporate shells Warnock used as vehicles to solicit donations from the public and to transfer funds from OWVA. Warnock then transferred most of the funds received by MFSF to himself, LNP, or other entities under his control,” the state says in its complaint in Marion County Court.
To top it off, the attorney general says, Warnock has also allowed OWVA to be used improperly to make unreported political contributions and for donors to claim such contributions as charitable donations. Such activities are contrary to Oregon’s campaign finance laws, to Internal Revenue Service regulations, and to OWVA’s status as a charitable, public-benefit corporation.”
Oregon seeks dissolution of OWVA, penalties for unlawful trade and solicitation, political campaign violations, violation of nonprofit laws, and violations of fiduciary duties. It wants Warnock ordered to pay “an amount equal to donations received to be distributed to charitable organizations that provide assistance to veterans,” civil penalties of up to $25,000 for each violations, costs and an injunction.