Local News
Charity organization ordered to cease and desist
PEARL RIVER COUNTY —
A charity organization that is currently housed in Pearl River County has been issued cease and desist orders from the Mississippi Secretary of State’s Office.
According to a press release from Secretary of State Delbert Hosemann’s office, Waveland Citizen’s Fund has been issued cease and desist orders due to violations of the Mississippi Charitable Solicitations Act
The release states the organization has provided false or misleading statements on documents filed in the Secretary of State’s Office by listing Kathleen Johnson as a volunteer of the organization, even though she is an employee of the charity. In so doing, the release alleges Johnson spent an unknown amount of the charity’s money on her own living expenses, which is a violation of state law.
Johnson, listed as a convicted felon in the release, had access and control over funds kept by the organization, also a violation of state law. The release also states the organization failed to keep records, receipts and or documentation concerning the organization’s income and expenses.
If the allegations turn out to be accurate, then the Secretary of State’s Office might issue a permanent cease and desist order to the organization, revoke the organization’s registration and impose a monetary penalty of up to $25,000 for each offense.
Waveland Citizens Fund has 30 days to ask for an administrative meeting with the Secretary of State’s Office, or the organization can file an appeal of the state’s decision.
The Sea Coast Echo reports that Johnson was convicted in 1992 of charges of bank fraud, fraudulent use of Social Security numbers and student loan fraud in Wyoming.
Johnson declined to make a comment on the record to the Picayune Item concerning the allegations and instead referred any questions to the attorney handling the case, Albert Gardner of Haas and Haas Attorneys at Law. Gardner did not return a phone call made to his office about the allegations as of Wednesday afternoon.
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