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Hosemann alleges Coast charity violating law

WAVELAND — Secretary of State Delbert Hosemann has issued a summary cease and desist order on Waveland Citizens Fund for violating the Mississippi Charitable Solicitations Act.

The Secretary of State’s Office has alleged the Waveland Citizens Fund:

• Provided false or misleading statements on documents filed with the Secretary of State’s Office by representing Kathleen Johnson as a “volunteer,” even though she is acting as an employee of charity

• Spent undocumented sums on Johnson’s living expenses, which did not further the organization’s charitable purpose and is a violation of state law

• Allowed Johnson, a convicted felon, to have access and control over some of the funds of the organization, a violation of state law

• Failed to maintain proper books and records by neglecting to maintain receipts or documentation of income and expenses

If the alleged violations are admitted or proven, the Secretary of State’s Office may order Waveland Citizens Fund to cease and desist from further illegal activity in the State of Mississippi, revoke the registration of Waveland Citizens Fund and impose an administrative penalty of up to $25,000 for each offense.

Waveland Citizens Fund has 30 days to request an administrative hearing in this matter with the Secretary of State’s Office. If a hearing is requested, the agency will schedule an open hearing accordingly. If a hearing is not requested within the 30-day timeframe, a final cease and desist order revoking the registration of the charity and imposing administrative penalties may be issued in the case.


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