Attorney General's News Release

November 16, 2006

Fundraiser sued by Nixon over “badge fraud” to pay $50,292 in restitution, donate $5,000 to children's charity

Attorney General Nixon chats with 10-year-old Kwan, a patient at Ranken Jordan Pediatric Specialty Hospital in Maryland Heights. Kwan gave a short speech thanking Nixon for the donation to the hospital. Looking on is Sgt. Joe Delia of the Maryland Heights Police Department.

St. Charles, Mo. — An O'Fallon fundraiser whose organization solicited donations over the phone by misrepresenting that the caller was a police officer will pay $50,292 in restitution and donate $5,000 to a local children's hospital. Gerald J. Lami, who did business under the name Police Tribune, also is prohibited from acting as a fundraiser in Missouri under the terms of the consent judgment obtained by Attorney General Jay Nixon.

“Missourians have always given great support to law enforcement, and we don't want to jeopardize that goodwill by a professional fundraiser who attempts to solicit funds through deceit,” Nixon said today at a news conference at Ranken Jordan Hospital in Maryland Heights, where he was joined by several area community police officials.

The Attorney General was also joined by Laurie Tanner, President and CEO of Ranken Jordan. Nixon presented Tanner with a check for $5,000 to aid the hospital's Family Assistance Program and to purchase Christmas presents for the hospital's child patients during the holidays.

Lauri Tanner, president and CEO of Ranken Jordan, thanks the Attorney General and members of area police departments for the $5,000 donation to the hospital that came from a settlement in a "badge fraud" case.

“With the holiday season just around the corner, it is important that Missourians have confidence that the money they donate to charity goes to its intended purpose,” Nixon continued. “Scams like ‘badge fraud’ tend to make citizens with good intentions less inclined to give. It's entirely appropriate that this defendant ends up actually donating to a worthwhile charity after his business used the good name of law enforcement to defraud consumers.”

Nixon obtained a temporary restraining order in August 2005 in St. Charles County Circuit Court against Lami and his son, Jay Lami, of Beaufort, that froze Police Tribune assets. Jay Lami is now deceased.

Business owners in St. Louis, Fenton, St. Peters, Maryland Heights, O'Fallon, Florissant, Kirkwood and other communities complained to local police after they received phone calls from the Police Tribune. Many times, the callers falsely identified themselves as being police officers. The police forwarded the complaints to the Attorney General's Office.

The business owners were solicited to purchase advertising in the Police Tribune and to make charitable donations, purportedly to benefit law enforcement-related programs and organizations. Prospective donors were told the programs would benefit survivors of officers killed in the line of duty and provide shopping trips to underprivileged youth. If the business owner agreed to make the donation, a courier was often sent to the business to pick it up.

The Police Tribune was not registered as a professional fundraiser or a charitable organization with the Attorney General's Office, as required by law. That meant there were no records on file with Nixon's office showing how much, if any, of the donations raised actually went to charity.

According to the judgment, the defendant is prohibited from operating as a fundraiser in the state of Missouri. The defendant's investment account with Fidelity Investments will be closed and from that account:

• $50,292 in full restitution will be paid to the businesses that bought the advertisements;
• $15,000 will be paid to the Merchandising Practices Revolving Fund for the state's costs in bringing the lawsuit and to provide funds for consumer education and advocacy programs; and
• $5,000 will be donated to Ranken Jordan Hospital of St. Louis. Several St. Louis-area police organizations already provide financial support to the hospital, which pays for lodging, meals, taxis and other services for parents who visit their children through its Family Assistance Program.

Nixon said that consumers can help protect themselves against fraudulent charitable solicitations by:

• Going to the Attorney General's Web site, www.ago.mo.gov, and looking at the Check A Charity link to see if a charity has provided information about itself to the Attorney General's Office;
• Asking if the caller works for a professional fundraiser. By law, professional fundraisers must provide this information;
• Not judging a charity by its name and by asking the solicitor to describe clearly how the donation will be used; and
• Asking the solicitor to provide you with a copy of the organization's annual report. The report should include information about how much of the money raised is actually used for the charitable purpose and how much is spent on administrative costs, such as fundraising.

“Take the time to do a little homework, and know what questions to ask, when you are considering giving to a charity,” Nixon said. “If you are a smart giver, and don't give in to high-pressure solicitations, you can be assured that your money is going where you want it to go.”

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818