The state's largest law enforcement officers' association is warning affiliates in Texas not to partner with a private California fundraising company that was once cited for not being properly registered in that state.
The Combined Law Enforcement Associations of Texas says that New Equity Productions' "standard contract allows it to pocket as much as 64 cents for every dollar it raises for clients," according to a CLEAT press release.
"Companies like this are only out to make an easy profit for themselves while tarnishing the good names of reputable police associations everywhere," CLEAT Executive Director Charley Wilkison said in the release. " “Don’t fall for their fast talk and slick presentations. They’ll scarf up the money while you’re stuck trying to restore your good name.”
The release also notes that New Equity was cited by the California Attorney General's Office in 2010 "because it was not properly registered with the state to solicit money."
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New Equity's attorney previously said the failure to register was a "clerical oversight."
New Equity Spokesperson Stacey Yudin told us in an email that the company is "fully registered and in compliance in both Texas and California, so we were surprised as anyone to learn of these false and misleading claims. At present, [the company] is reviewing potential legal recourse as [a] result of these false allegations."
Yudin also wrote that "While we can appreciate the zealousness with which Mr. Wilkison takes to protect his association, we believe that there was a rush to judgement on his part." She added that the company's contracts do not reflect a 64-cent recovery and that New Equity does not solicit over the phone.
"In fact, we take the risk, and pay upfront for all costs to launch an association’s fundraising campaign," Yudin wrote. "This includes production, postage, packaging of souvenir items, thank-you letters, follow up, etc. We have been helping law enforcement associations raise funds for over 20 years and have never been cited, censured, fined or otherwise been accused of engaging in a pattern of illegal activity."