.' i IN THE CIRCUIT COURT OF COOK COUNTY, ILLINOIS COUNTY DEPARTMENT, CHANCERY DIV!~,~q~Ct+Ol1'96 THE PEOPLE OF THE STATE OF ILLINOIS ex rei. MADIGAN, Attorney General of Illinois, Plaintiff, LISA!;i~~!~Ni?iI!R,/i!iOOii"1 io ,~J.)~ii.:. U"? ~ O{} i ,.-I" 'u"'" r-"- ~ n'''' ,'." Y' ..• ,-- ,- . . '-'" , vs SAFETY PUBLICATIONS, INC., an Illinois business corporation; ADAM HERDMAN; and ARTHUR OLIVERA, Defendants. ) ) ) ) ) No. VERIFIED COMPLAINT FOR AN INJUNCTION, AN ACCOUNTING, FORFEITURE OF FEES AND COMPENSATION, AND OTHER EOUITABLE RELIEF NOW COMES the Plaintiff, the PEOPLE OF THE STATE OF ILLINOIS ex rei. LISA., MADIGAN, Attorney General ofIllinois, and complains ofDefendants SAFETY RUBLICAlJONS, INC.;' ~ . ADAM HERDMAN; and ARTHUR OLIVERA, for unregistered charitable public [Ii \ sol¥oitatio~'s o~e 4\~ ~."':~-~ ~~..:'~ ~ ---­r"" Z violation of Illinois law, and states as follows: ~\ ~~~. ~ ~..., 0 c\ oc;:::"~ ~ -:...t---u~ -0 r"t1.~ (_. -;tl l:)~:~~ ,\ GENERAL ALLEGATIONS/PARTIES \ ~...) ~ 1. :.: ~?:('; . 1..·' (:;1 .~ Z (.0) •• "-"I 1"'-."1 This cause is brought for and on behalf of THE PEOPLE OF THE STATE OF ILLIN8IS, by and through the Attorney General of Illinois, pursuant to the Solicitation For Charity Act, 225 ILCS 460/1 et seq. (hereinafter the "Solicitation Act") and the Attorney General's common-law power and duty to protect the interests of THE PEOPLE OF THE STATE OF ILLINOIS, as ultimate beneficiaries, in matters pertaining to charitable organizations and the integrity ofcharitable assets and funds solicited and collected for charitable purposes in Illinois. 2. The PEOPLE OF THE STATE OF ILLINOIS are the ultimate beneficiary or cestui que trust of all Illinois charitable assets and property, and the Attorney General, in her capacity as the legal representative of the PEOPLE OF ILLINOIS, has the common law power and duty to protect the interests ofthe PEOPLE OF ILLINOIS in all such property, including by any legal proceedings. I 3. Defendant SAFETY PUBLICATIONS, INC. (hereinafter "SAFETY PUBLICATIONS") is a for­ profit Illinois business corporation incorporated by Defendants HERDMAN and OLIVERA with the Illinois Secretary of State on June 30, 1998. (Attached hereto and incorporated herein by reference as Exhibit "A" is a copy of Defendant SAFETY PUBLICATIONS' Illinois Articles ofIncorporation.) 4. At all times relevant hereto, Defendant SAFETY PUBLICATIONS was principally located at 1360 Landmeier Rd, Elk Grove Village, Illinois 60007. 5. At all relevant times hereto, Defendants ADAM HERDMAN (hereinafter "HERDMAN") and ARTHUR OLIVERA (hereinafter "OLIVERA") have been Illinois residents. 6. Based on documents filed by Defendants SAFETY PUBLICATIONS, HERDMAN, and OLIVERA with the Attorney General, at all relevant times hereto, Defendants HERDMAN and OLIVERA have been the only principal officers and directors of Defendant SAFETY PUBLICATIONS, and Defendants HERDMAN and OLIVERA have each been and 50% owners/shareholders of Defendant SAFETY PUBLICATIONS. As such, Defendants HERDMAN and OLIVERA are the natural persons responsible for SAFETY PUBLICATIONS' acts and practices as hereinafter alleged. 7. As further alleged herein, during the period from at least January 1,2010 and continuing through at least October 2015, Defendants SAFETY PUBLICATIONS, HERDMAN, and/or OLIVERA have, for compensation or other consideration, conducted, managed, and/or otherwise carried on charitable solicitation and/or fund raising drives and/or campaigns in Illinois, from Illinois, and/or on behalf of one or more charitable organizations residing in Illinois, soliciting, receiving, and/or collecting contributions for or on behalf of such charitable organizations. ,8. At all relevant times hereto there was in existence and effect in Illinois a statute governing the 2 solicitation and collection of funds for charitable purposes in the State of Illinois,' namely the Solicitation For Charity Act (225 ILCS 460/1 et seq.) (hereafter the "Solicitation Act"). 9. Section 1(d) of the Solicitation Act defines "professional fund raiser" in pertinent part as follows: (d) "Professional Fund Raiser" means any person who for compensation or other consideration, conducts, manages, or carries on any solicitation or fund raising drive or campaign in this State or from this State or on behalfofa charitable organization residing within this State for the purpose ofsoliciting, receiving, or collecting contributionsfor or on behalfofany charitable organization Or any otherperson, or who engages in the business of, or holds himselfout to persons in this State as independently engaged in the business of soliciting, receiving, or collecting contributions for such purposes. (225 ILCS 460/1 (d).) 10. Section 6(a) ofthe Solicitation Act requires professional fund raisers who solicit or intend to solicit in or from the State of Illinois for public charitable contributions to, among other things, register with the Illinois Attorney General prior to soliciting the public. Section 6(a) provides as follows: (a) No person shall act as a professional fund raiser or allow a professional fund raiser entity he owns, manages, or controls to act for a charitable organization required to register pursuant to Section 2 ofthis Act [225 ILCS 460/2j, or for any organization as described in Section 3 ofthis Act [225 ILCS 460/3j before he has registered himselfor the entity with the Attorney General or after the expiration or cancellation of such registration or any renewal thereof Applications for registration and re-registration shall be in writing, under oath, in the form prescribed by the Attorney General. * * * Registration or re-registration when efficted shall be for a period ofone year, or a part thereof, expiring on the 30,hday ofJune, and may be renewed upon written application, under oath, in the form prescribed by the Attorney General ...for additional one year periods. (225 ILCS 460/6(a)). 11. On or about June 29, 2010, Defendants SAFETY PUBLICATIONS, HERDMAN, and/or OLIVERA filed with the Illinois Attorney General SAFETY PUBLICATIONS' Professional Fund Raiser Registration Statement (Fonn PFR-01) for the registration period expiring June 30,2011. (Attached hereto and incorporated herein by reference as Exhibit "B" is a redacted copy of SAFETY PUBLICATIONS' Professional Fund Raiser Registration Statement (Form PFR-01) as submitted to the Attorney General for 3 the registration period ending June 30, 2011.) 12. On or about June 23, 2011, Defendants SAFETY PUBLICATIONS, HERDMAN, and/or OLIVERA filed filed with the Illinois Attorney General SAFETY PUBLICATIONS' Professional Fund Raiser Registration Statement (FormPFR-01) for the registration period expiring June 30, 2012. (Attached hereto and incorporated herein by reference as Exhibit "C" is a redacted copy of SAFETY PUBLICATIONS' Professional Fund Raiser Registration Statement (Form PFR-Ol) as submitted to the Attorney General for the registration period ending June 30, 2012.) 13. On or about June 14, 2013, Defendants SAFETY PUBLICATIONS, HERDMAN, and/or OLIVERA filed with the Illinois Attorney General SAFETY PUBLICATIONS' Professional Fund Raiser Registration Statement (Form PFR-O 1) for the registration period expiring June 30, 2013. (Attached hereto and incorporated herein by reference as Exhibit "D"is a redacted copy of SAFETY PUBLICATIONS' Professional Fund Raiser Registration Statement (Form PFR-01) as submitted to the Attorney General for the registration period ending June 30, 2013.) 14. On oraboutJuly 2, 2013,Defendants SAFETY PUBLICATIONS, HERDMAN, and/or OLIVERA filed with the Illinois Attorney General SAFETY PUBLICATIONS' Professional Fund Raiser Registration Statement (Form PFR-01) for the registration period expiring June 30, 2014. (Attached hereto and incorporated herein by reference as Exhibit "E" is a redacted copy of SAFETY PUBLICATIONS' Professional Fund Raiser Registration Statement (Form PFR-01) as submitted to the Attorney General for the registration period ending June 30, 2014.) 15. In addition to the above, Section 6(d) of the Solicitation Act requires professional fund raisers to file an annual written report with the Attorney General, as follows: Sec. 6(d) Every professional registered pursuant to this Act shall also file calendar year written financial 4 reports with the Attorney General containing such information as [sjhe may require, onforms prescribed by [herJ, as well as separate financial reports for each separate fund raising campaign conducted. The written report, including all required schedules, shall be filed under oath on or before April 30 of the following calendar year and be signed and verified under penalty ofperjury within the time prescribed. (225 ILCS 460/6(a)). 16. On or about May 31, 2011, Defendants SAFETY PUBLICATIONS, HERDMAN, and/or OLIVERA filed with the Illinois Attorney General SAFETY PUBLICA nONS' Professional Fund Raiser Annual Financial Report (Form PFR-02) reporting for the calendar year ending December 31,2010. Said Professional Fund Raiser Annual Financial Report stated that, during calendar year 2010, Defendant SAFETY PUBLICATIONS solicited, received, and collected a total of$898,752.68 from the public on behalf 8 reported charities - of which $142,465.63 collectively went to the charities named, while $765,268.80 went to SAFETY PUBLICATIONS as compensation Year 2010 2010 2010 2010 2010 2010 2010 2010 2010 Total Charity Name Children's Charity Fund Illinois Jaycees Illinois Vietnam Veterans IL Assoc. of Retired Firefighters Lake County FOP No. 66 Lake Co. Juvenile Officers Assoc. IL Council of Police America's Food Bank Firefighters Burn Fund To Charity $ 15,901.66 $ 8,134.74 $ 12,156.50 $ 21,156.50 $ 11,561.60 $ 9,789.20 $ 55,787.81 $ 5,247.79 $ 2,223.00 $142,465,63 as follows: To Safety Publications $ 74,964.97 $ 44,688.26 $109,410.75 $ 92,354.21 $ 46,246.90 $ 39,156.80 $316,130.91 $ 29,737.50 $12,579.00 $765,268,80 Total Raised $ 90,866.63 $ 52,823.00 $112,567.50 $114,017.50 $ 57,808.00 $ 48,946.00 $371,918.72 $ 34,985.29 $ 14,820.00 $898,752,68 (Attached hereto and incorporated herein by reference as Exhibit "F" is a redacted copy of SAFETY PUBLICATIONS' Professional Fund Raiser Annual Financial Report (Form PFR-02) reporting for the calendar year ending December 31, 2010.) 17. On or about May 30, 2012, Defendants SAFETY PUBLICATIONS, HERDMAN, and/or OLIVERA filed with the Illinois Attorney General SAFETY PUBLICATIONS' Professional Fund Raiser Annual Financial Report (Form PFR-02) reporting for the calendar year ending December 31, 2011. Said Professional Fund Raiser Annual Financial Report stated that, during calendar year 2011, Defendant 5 SAFETY PUBLICATIONS solicited, received, and collected a total of$l ,017,106.17 from the public on behalf 16 reported charities - of which $157,647.59 collectively went to the charities named, while $859,658.58 went to SAFETY PUBLICATIONS as compensation Year 2011 2011 201 1 2011 201 1 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 Total Charity Name Children's Charity Fund, Inc. Illinois Jaycees Illinois Vietnam Veterans IL Assoc. of Retired Firefighters American Fnd For Disabled Children Lake County FOP No. 66 Lake Co. Juvenile Officers Assoc. America's Food Bank IL Council of Police Illinois Police Association Women to Women Breast Cancer Firefighters Burn Fund Community Charity Advancement Cancer Fund of America Disabled Veterans Services Breast Cancer Survivors Fnd To Charity $ 18,405.61 $ 9,426.98 $ 13,001.75 $ 22,186.06 $ 269.16 $ 5,302.48 $ 14,510.47 $ 5,627.44 $ 43,488.09 $ 13,142.35 $ 7,051.82 $ 5,235.38 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $157,647.59 as follows: To Safety Publications $ 86,769.32 $ 47,022.02 $117,015.75 $ 94,582.66 $ 2,422.40 $ 21,209.92 $ 22,604.40 $ 31,888.85 $246,432.49 $ 96,377.22 $ 63,666.42 $ 29,667.13 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $859,658.58 Total Raised $105,174.93 $ 56,449.00 $130,017.50 $116,786.72 $ 2,691.56 $ 26,512.40 $ 37,114.87 $ 37,516.29 $289,920.58 $109,519.57 $ 70,518.24 $ 34,902.15 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $1,017,106.17 (Attached hereto and incorporated herein by reference as Exhibit "G"is a redacted copy of SAFETY PUBLICATIONS' Professional Fund Raiser Annual Financial Report (Form PFR-02) reporting for the calendar year ending December 31, 2011.) 18. On or about September 15,2014, Defendants SAFETY PUBLICATIONS, HERDMAN, and/or OLIVERA filed with the Illinois Attorney General SAFETY PUBLICATIONS' Professional Fund Raiser Annual Financial Report (Form PFR-02) reporting for the calendar year ending December 31,2012. Said Professional Fund Raiser Annual Financial Report stated that, during calendar year 2012, Defendant SAFETY PUBLICATIONS solicited, received, and collected a total of $752,607.37 from the public on behalf 7 reported charities - of which $108,173.81 collectively went to the charities named, while $644,433.56 went to SAFETY PUBLICATIONS as compensation Year 2012 Charity Name America's Food Bank To Charity $ 10,244.42 6 as follows: To Safety Publications $ 58,051.70 Total Raised $ 68,296.12 2012 20]2 2012 20]2 20]2 20]2 Total Illinois Vietnam Veterans IL Assoc. of Retired Firefighters Women to Women Breast Cancer Illinois Police Association Lake Co. Juvenile Officers Assoc. IL Council of Police $ ]4,122.50 $ 19,032.13 $ 4,634.53 $ 16,204.36 $ 6,956.00 $ 36,979.87 $108,173.81 $127,102.50 $ 81,136.98 $ 41,710.79 $118,832.00 $ 8,047.00 $209,552.59 $644,433.56 $141,225.00 $100,169.11 $ 46,345.32 $135,036.36 $ 15,003.00 $246,532.46 $752,607.37 (Attached hereto and incorporated herein by reference as Exhibit "H" is a redacted copy of SAFETY PUBLICATIONS' Professional Fund Raiser Annual Financial Report (Form PFR-02) reporting for the calendar year ending December 31, 2012.) 19. The Attorney General has no record of Defendants SAFETY PUBLICATIONS, HERDMAN, and/or OLIVERA ever filing a Professional Fund Raiser Annual Financial Report (Form PFR-02) for SAFETY PUBLICATIONS for the calendar year ending December 31,2013. 20. On or about May 27, 2015, Defendants SAFETY PUBLICATIONS, HERDMAN, and/or OLIVERA filed with the Illinois Attorney General SAFETY PUBLICATIONS' Professional Fund Raiser Annual Financial Report (Form PFR-02) reporting for the calendar year ending December 31,2014. Said Professional Fund Raiser Annual Financial Report stated that, during calendar year 2014, Defendant SAFETY PUBLICATIONS solicited, received, and collected a total of$9,604.89 from the public on behalf 3 reported charities - of which $1,349.49 collectively went to the charities named, while $8,255.40 went to SAFETY PUBLICATIONS as compensation Year 2014 2014 2014 Total Charity Name America's Food Bank Illinois Police Association Illinois Council of Police as follows: To Charity $ 149.18 $ 364.96 $ 835.35 $1,349.49 To Safety Pu blications $ 845.35 $ 2,676.40 $ 4,733.65 $8,255.40 Total Raised $ 994.53 $ 3,041.36 $ 5,569.00 $9,604.89 (Attached hereto and incorporated herein by reference as Exhibit "I" is a redacted copy of SAFETY PUBLICATIONS' Professional Fund Raiser Annual Financial Report (Form PFR-02) reporting for the 7 · -', . ""..•~ - . ~ calendar year ending December 31, 2014.) 21. Based on SAFETY PUBLICATIONS' 2010,2011,2012, and 2014 Professional Fund Raiser Annual Financial Reports (Forms PFR-02) filed with the Illinois Attorney General as set forth above, during the period from January 1, 2010 through December 31, 2014, Defendant SAFETY PUBLICATIONS and/or its solicitor agents solicited, received, and collected at least $2,678,071.11 in charitable contributions - of which $409,636.52 went to charity, while $2,277,616.34 was paid as compensation to SAFETY PUBLICATIONS Calendar Year 1/1/2010-12/31/2010 1/112011-12/31/2011 1/1/201 2-12/3 112012 1/1/2014-12/31/2014 Total To Charity $ 142,465.63 $ 157,647.59 $ 108,173.81 $ 1,349.49 $ 409,636.52 as follows: To Safety Publications $ 765,268.80 $ 859,658.58 $ 644,433.56 $ 8,255.40 $ 2,277,616.34 Total Raised $ 898,752.68 $ 1,017,106.17 $ 752,607.37 $ 9,604.89 $ 2,678,071.11 (See Exhibits "F", "Goo, "H", and "I" hereto). 22. In addition to the charitable fund raising activities reported by Defendants on SAFETY PUBLICATIONS' 2010, 2011, 2012, and 2014 Professional Fund Raiser Annual Financial Reports (Exhibits "F", "Goo, "H", and "I") as set forth above, the Attorney General has learned that, during the period from at least January 1,2010 and continuing through at least October 2,2015, Defendants SAFETY PUBLICATIONS, HERDMAN, and/or OLIVERA and/or their solicitor agents also solicited, collected, and/or received substantial contributions for a charitable organization called Vietnow National Headquarters d/b/a VeteransNow and located at 1835 Broadway, Rockford, Illinois 61104 (hereinafter "VNH/VeteransNow"). 23. According to financial records produced to the Attorney General by VNHlVeteransNow, during 8 the period from.at least January 1, 2010 through at least October 2, 2015, Defendants SAFETY PUBLICATIONS, HERDMAN, and/or OLIVERA and/or their solicitor agents solicited, received, and collected a total of $1,626,045.29 in charitable contributions from the public on behalf of VNHNeteransNow- ofwhich $166,183.10 went to VNHNeteransNow, while $1,363,666.30 was paid as compensation to SAFETY PUBLICATIONS (and another $95,058.91 was paid as compensation to a Florida-based for-profit entity called United Publishing) Calendar Year ]/] /20] 0- ]2/3] /20] 0 1/1/20] ]-] 2/3] /20] ] 1/] /20] 2-] 2/31/20] 2 ]/] /2013- ]2/3 ]/2013 ]/]/20]4- ]2/3 ]/20]4 ]/]/20] 5-10/2/20]5 Total 24. VNHNeteransNow $ 35,279.62 $ 35,034.84 $ 34,6]9.30 $ 26,891.05 $ 25,021.69 $ 9,336.60 $166,183.10 as follows: Safety Publications $ 288,995.5] $ 284,043.67 $ 290,538.] 0 $ 220,358.76 $ 202,741.26 $ 76,989.00 $1,363,666.30 United Publishing $ ]9,804.08 $ 20,380.37 $ 20,77].58 $ ]5,] J9.]0 $ ]3,632.36 $ 5,35] .42 $ 95,058.91 Total Raised $ 344,273.2] $ 339,672.88 $ 346,] 92.98 262,550.9] $ 24],615.3] , $ 9],740.00 $1,626,045.29 s As set forth above, Defendant SAFETY PUBLICATIONS received substantial compensation to solicit, receive, and collect charitable contributions in Illinois, from Illinois, and/or on behalf of one or more charitable organizations residing in Illinois during the period from at least January 1,2010 through at least October 2, 2015 and, consequently, Defendant SAFETY PUBLICATIONS is and was at all times relevant hereto a "professional fund raiser" as that term is defined in Section 1(d) of the Solicitation Act (225 ILCS 460/1 (d)). JURISDICTION AND VENUE 25. The Plaintiff is the PEOPLE OF THE STATE OF ILLTI\JOIS. Defendant SAFETY PUBLICATIONS is an Illinois business corporation principally located in Illinois. Defendants HERDMAN and OLIVERA are each Illinois residents and officers, directors, owners, and controlling persons of Defendant SAFETY PUBLICATIONS. As set forth above, the Defendants have solicited, received and collected charitable contributions in Illinois, from Illinois, and on behalf of charitable organizations residing in Illinois. Therefore, this Court has jurisdiction over the parties and over the subj ect matter ofthis 9 action. 26. The list ofregistrations ofpersons including professional fund raisers required to be registered under the Solicitation For Charity Act, 225 ILCS 460/1 et seq., is accepted and maintained by the Attorney General in her office in Chicago, Cook County, Illinois. As such, venue of this action is proper in Cook County, Illinois pursuant to Section 5 of the Solicitation Act. (225 ILCS 460/5.) COUNT I MISLEADING THE PUBLIC BY FALSE STATEMENTS AND/OR MATERIAL OMISSIONS IN VIOLATION OF THE SOLICITATION FOR CHARITY ACT 1-26. The Plaintiffhereby repeats and re-alleges Paragraphs 1through 26 ofthis Complaint as Paragraphs 1 through 26 of Count I, and incorporates the same by reference as though fully set forth herein. False Statements And/or Material Omissions In Professional Fund Raiser Registration Statements Filed with the Attorney General's Office 27. As previously alleged, Defendants SAFETY PUBLICATIONS, HERDMAN, and/or OLIVERA filed with the Illinois Attorney General SAFETY PUBLICATIONS' Professional Fund Raiser Registration Statements (Forms PFR-Ol) for each ofthe registration periods ending June 30, 2011, June 30, 2012, June 30,2013, and June 30, 2014 (see Exhibits "B", "C", "D", and "E"). 28. Each Professional Fund Raiser Registration Statement was signed under penalty of perjury by Defendant OLIVERA in his capacity as an officer, director, and 50% owner of Defendant SAFETY PUBLICATIONS and stated, among other things, that the Defendants had read such registration statement . and personally knew the contents thereof to be true (see Exhibits "B", "C", "D", and "E"). 29. On Page 2 ofeach ofthe respective Professional Fund Raiser Registration Statements (Forms PFR­ 10 01) submitted by Defendants for the registration periods ending June 30, 2011, June 30, 2012, June 30, , . I 2013, and June 30, 2014 (Exhibits "Boo, "COO, "D", and "E"hereto), Defendants were required to fully respond to Question 7 which requested the following information: "HAVE ANY OF THE FIRM'S PRINCIPAL PARTIES, EMPLOYEES, OFFICERS, DIRECTORS, EXECUTIVE PERSONNEL, OWNERS OF TEN PERCENT OR MORE OF THE CAPITAL STOCK OR THEIR RELATIONS EVER BEEN CONVICTED OF A MISDEMEANOR INVOLVING THE MISAPPROPRIATION OR MISUSE OF MONEY OF ANOTHER, OR OF ANY FELONY? 0 Yes 0 No IF "YES", INDICATE WHO WAS CONVICTED, THE NATURE a/OFFENSE, DATE a/CONVICTION, and NAME and ADDRESS a/COURT. (See Question 7 on Page 2 of Exhibit "B", Question 7 on Page 2 of Exhibit "C", Question 7 on Page 2 of Exhibit "D", and Question 7 on Page 2 of Exhibit "E".) 30. Defendants affirmatively answered "NO" in response to Question 7 on Page 2 of each of the respective Professional Fund Raiser Registration Statements (Forms PFR-O1) submitted by Defendants for the registration periods ending June 30, 2011, June 30, 2012, June 30, 2013, and June 30, 2014. (See Defendants' answer to Question 7 on Page 2 of Exhibit "B", Defendants' answer to Question 7 on Page 2 of Exhibit "COO, Defendants' answer to Question 7 on Page 2 of Exhibit "D", and Defendants' answer to Question 7 on Page 2 of Exhibit "E".) 31. Although each ofthe Professional Fund Raiser Registration Statements (Forms PFR-Ol) submitted by Defendants for the registration periods ending June 30, 2011, June 30, 2012, June 30, 2013, and June 30, 2014 were signed under penalty of perjury and stated that such were submitted for "the purpose of having the People of the State of Illinois rely thereupon" (see Exhibits "B", "C", "D", and "E" hereto): 11 a. The Defendants' answer to Question 7 on Page 2 ofSAFETY PUBLICATIONS' Professional Fund Raiser Registration Statement (Form PFR-01) for the registration period ending June 30, 2011 (Exhibit "B" hereto) was materially false; b. The Defendants' answer to Question 7 on Page 2 ofSAFETY PUBLICATIONS' Professional Fund Raiser Registration Statement (Form PFR-01) for the registration period ending June 30, 2012 (Exhibit "C" hereto) was materially false; c. The Defendants' answer to Question 7 on Page 2 ofSAFETY PUBLICATIONS' Professional Fund Raiser Registration Statement (Form PFR-01) for the registration period ending June 30, 2013 (Exhibit "D" hereto) was materially false; and d. The Defendants' answer to Question 7 on Page 2 ofSAFETY PUBLICATIONS' Professional Fund Raiser Registration Statement (Form PFR-01) for the registration period ending June 30, 2014 (Exhibit "E" hereto) was materially false. 32. Specifically, Defendant OLIVERA, is and was at all times relevant hereto, a principal officer and director of Defendant SAFETY PUBLICATIONS, and one of its two 50% owners/shareholders who, on September 26, 1983, Defendant OLIVERA was found guilty of felony arson by the Circuit Court of Cook County (Judge Bailey) (Criminal Case Number 83 C 00288604) and sentenced to 30 months ofprobation. (Attached hereto and incorporated herein by reference as Exhibit "J" is a copy of Defendant OLIVERA's certified record relating said felony conviction.) 33. As a consequence of the foregoing, Defendants SAFETY PUBLICATIONS, HERDMAN, and OLIVERA repeatedly failed to file accurate and complete applications for registration and/or re-registration "in writing, under oath, [and] in the form prescribed by the Attorney General" and they have therefore 12 violated Section 6(a) ofthe Solicitation Act (225 ILCS 460/6(a)). Each false, inaccurate and/or incomplete registration statement filed with the Attorney General as aforesaid is a separate violation. False Statements And/or Material Omissions In Professional Fund Raiser Annual Financial Reports Filed with the Attorney General's Office 34. In addition, as previously alleged, during the period from January 1,2010 through at least October 2, 2015, Defendants SAFETY PUBLICATIONS, HERDMAN, and/or OLIVERA and/or their solicitor agents solicited, received, and collected a total of$l ,626,045.29 in charitable contributions from the public on behalf of an Illinois-based charity called VNH/VeteransNow - of which $166,183.10 went to VNH/VeteransNow and $1,363,666.30 was paid to SAFETY PUBLICATIONS as compensation - as follows: Calendar Year 1/1/2010-12/31/2010 1/1/2011-12/31/2011 1/1/2012-12/31/2012 1/1/2013-12/31/2013 1/1/2014-12/31/2014 1/1/2015-10/2/2015 Total 35. Amt To VNHNeteransNow $ 35,279.62 $ 35,034.84 $ 34,619.30 $ 26,891.05 $ 25,021.69 $ 9,336.60 $166,183.10 Amt to Safety Publications $ 288,995.51 $ 284,043.67 $ 290,538.10 $ 220,358.76 $ 202,741.26 $ 76,989.00 $1,363,666.30 Total Raised $ 344,273.21 $ 339,672.88 $ 346,192.98 $ 262,550.91 $·241,615.31 $ 91,740.00 $1,626,045.29 The Defendants failed to report any of the charitable fund raising activity alleged in Paragraph 34 on the Professional Fund Raiser Annual Financial Reports (Forms PFR~02) that they filed with the Illinois Attorney General respectively reporting for the calendar years ending December 31, 2010, December 31, 2011, December 31, 2012, and December 31,2014 (see Exhibits "F", "G", "H", and "I" hereto). 36. Although the Defendants filed a Professional Fund Raiser Annual Financial Report (Form PFR -02) for the calendar year ending December 31,2010 (Exhibit "F" hereto) reporting that they solicited, received, and/or collected $898,752.68 on behalf 8 charities (respectively identified therein) and that they were paid $765,268.80 of those funds as compensation, the Defendants' 2010 Professional Fund Raiser Annual 13 Financial Report (Exhibit "F") failed to: a. Make any public disclosure regarding Defendants' professional fund raising activities for and/or on behalf of VNHNeteransNow during 2010 as required by Section 6(d) of the Solicitation Act; b. Report that Defendants solicited, received, and/or collected $344,273.21 from the public on behalf ofVNHNeteransNow during 2010 as required by Section 6(d) of the Solicitation Act; and c. Disclose that Defendants were paid compensation totaling $284,043.67 from the $344,273.21 that they collected from the public on behalf ofVNHNeteransNow during 2010 as required by Section 6(d) of the Solicitation Act. 37. Although the Defendants filed a Professional Fund Raiser Annual Financial Report (Form PFR-02) for the calendar year ending December 31,2011 (Exhibit "G" hereto) reporting that they solicited, received, and/or collected $1,017,106.17 on behalf L6 charities (respectively identified therein) and that they were paid $859,658.58 ofthose funds as compensation, the Defendants' 2011 Professional Fund Raiser Annual Financial Report (Exhibit "G") failed to: a. Make any public disclosure regarding Defendants' professional fund raising activities for and/or on behalf ofVNH/VeteransNow during 2011 as required by Section 6(d) of the Solicitation Act; b. Report that Defendants solicited, received, and/or collected $339,672.88 from the public on behalf ofVNHNeteransNow during 2011 as required by Section 6(d) of the Solicitation Act; and c. Disclose that Defendants were paid compensation totaling $288,995.51 from the $339,672.88 that they collected from the public on behalf ofVNHNeteransNow during 2011 as required by Section 6(d) of the Solicitation Act. 38. Although the Defendants filed a Professional Fund Raiser Annual Financial Report (Form PFR-02) 14 for the calendar year ending December 31, 2012 (Exhibit "H" hereto) reporting that they solicited, received, and/or collected $752,607.37 on behalf 7 charities (respectively identified therein) and that they were paid $644,433.56 of those funds as compensation, the Defendants' 2012 Professional Fund Raiser Annual Financial Report (Exhibit "H") failed to: a. Make any public disclosure regarding Defendants' professional fund raising activities for and/or on behalf ofVNH/VeteransNow during 2012 as required by Section 6(d) of the Solicitation Act; b. Report that Defendants solicited, received, and/or collected $346,192.98 from the public on behalf ofVNH/VeteransNow during 2012 as required by Section 6(d) of the Solicitation Act; and c. Disclose that Defendants were paid compensation totaling $290,538.10 from the $346,192.98 that they collected from the public on behalf ofVNHNeteransNow during 2012 as required by Section 6(d) of the Solicitation Act. 39. In addition, as previously alleged, Defendants SAFETY PUBLICATIONS, HERDMAN, and/or OLIVERA never submitted a Professional Fund Raiser Annual Report (Form PFR-02) for calendar year 2013 even though they received $220,358.76 in compensation to solicit, receive, and collect $262,550.91 on behalf ofVNH/VeteransNow during calendar year 2013. Defendants therefore failed to : a. Make any public disclosure regarding their professional fund raising activities for and/or on behalf of VNH/VeteransNow during 2013 as required by Section 6(d) of the Solicitation Act; b. Report that they solicited, received, and/or collected $262,550.91 from the public on behalf of VNH/VeteransNow during 2013 as required by Section 6(d) of the Solicitation Act; and c. Disclose that they were paid compensation totaling $220,358.76 from the $262,550.91 that they collected from the public on behalf ofVNHNeteransNow during 2013 as required by Section 6(d) of the Solicitation Act. 15 40. Moreover, although the Defendants filed a Professional Fund Raiser Annual Financial Report (Form PFR-02) for the calendar year ending December 31, 2014 (Exhibit "I" hereto) reporting that they solicited, received, and/or collected $9,604.89 on behalf3 charities (respectively identified therein) and that they were paid $8,255.40 of those funds as compensation, the Defendants' 2014 Professional Fund Raiser Annual Financial Report (Exhibit "I") failed to: a. Make any public disclosure regarding Defendants' professional fund raising activities for and/or on behalf ofVNHNeteransNow during 2014 as required by Section 6(d) of the Solicitation Act; b. Report that Defendants solicited, received, and/or collected $241,615.31 from the public on behalf ofVNHNeteransNow during 2014 as required by Section 6(d) of the Solicitation Act; and c. Disclose that Defendants were paid compensation totaling $202,741.26 from the $241,615.31 that they collected from the public on behalf ofVNHNeteransNow during 2014 as required by Section 6(d) of the Solicitation Act. 41. As a consequence of the foregoing, Defendants SAFETY PUBLICATIONS, HERDMAN, and OLIVERA repeatedly failed to file accurate and complete Professional Fund Raiser Annual Reports (Forms PFR-02) with the Attorney General in violation ofSection 6(d) ofthe Solicitation Act (225 ILCS 460/6(d)). Each such failure to file an accurate and complete Professional Fund Raiser Annual Report (Form PFR-02) with the Attorney General (including for each of the years 2010, 2011, 2012, 2013, and 2014 as aforesaid) is a separate violation. 42. Section 6(h) of the Solicitation Act provides as follows: (h) Any person who violates any ofthe provisions ofthis Section shall be subject to civil penalties of$5,000 for each violation and shall not be entitled to keep or receive fees, salaries, commissions or any compensation as a result or on account ofthe solicitations or fund raising campaigns, and at the request ofthe Attorney General or the charitable organization, a court may order that such be forfeited and paid toward and used for a charitable purpose as the court in its discretion determines is appropriate or placed in the Illinois 16 Charity Bureau Fund. (225 ILCS 460/6(h).) 43. For each violation ofSections 6(a) and 6(d) ofthe Solicitation Act that this Court determines to have been committed by Defendants, each should each be subject to a $5,000-per-violation civil penalty pursuant to Section 6(h) of the Solicitation Act. False Statements And/or Material Omissions When Soliciting Contributions from the Public 44. In addition to the foregoing, VNH/VeteransNow provided to the Attorney General copies of solicitation scripts provided to it by Defendants SAFETY PUBLICATrONS, HERDMAN, and OLIVERA and/or their solicitor agents in connection with Defendants' solicitation, collection, and receipt ofcharitable contributions on VNH/VeteransNow's behalf during the period from at least January 1,2010 through at least October 2, 2015. (Attached hereto and incorporated herein by reference as Group Exhibit "K" are copies of said solicitation scripts.) 45. According to the aforesaid solicitation scripts (Group Exhibit "K" hereto), Defendants instructed their solicitor agents to make certain specific representations to prospective donors when conducting solicitation and/or fund raising activities for and/or on behalf ofVNH/VeteransNow, as follows: a. Ifasked "What is VNHNeteransNow," Defendants SAFETY PUBLICATrONS, HERDMAN, and OLIVERA and/or their solicitor agents represented to prospective donors that: "VeteransNow is a non-profit organization with tax-deductible status, organized to improve the conditions for Veterans returning home from war." (See Script Response 1 on Page 1 of Group Exhibit "K" hereto); b. Ifasked "Are you a veteran," Defendants SAFETY PUBLICATrONS, HERDMAN, and OLIVERA 17 and/or their solicitor agents represented to prospective donors: "No I am not; I am an official representative calling on behalf of the VeteransNow Association." (See Script Response 2 on Page 1 of Group Exhibit "K" hereto); c. If asked "Where are you calling from," Defendants SAFETY PUBLICAnONS, HERDMAN, and OLIVERA and/or their solicitor agents represented to prospective donors: "I'm calling you from our regional business office in Elk Grove Village: 1360 Landmeier Rd, Elk Grove Village, IL 60007." (See Script Response 3 on Page 1 of Group Exhibit "K" hereto); d. Ifasked "the address ofthe VeteransNow Headquarters," Defendants SAFETY PUBLICATIONS, HERDMAN, and OLIVERA and/or their solicitor agents represented to prospective donors that: "The Association's address is: 1835 Broadway, Rockford, IL 61104." (See Script Response 1 on Page 2 of Group Exhibit "K" hereto);; e. Ifasked about the legitimacy ofthe fund raising campaign, Defendants SAFETY PUBLICAnONS, HERDMAN, and OLIVERA and/or their solicitor agents represented to prospective donors that: "Prior to writing your check, you'll receive an official receipt for tax purposes, a thank you letter/brochure from the president of the VeteransNow Association. You would make your check directly payable to VeteransNow." (See Script Response 2 on Page 2 of Group Exhibit "K" hereto); f. Ifprospective donors ask if the caller can send them information/literature/a letter prior to making a pledge, Defendants SAFETY PUBLICATIONS, HERDMAN, and OLIVERA and/or their solicitor agents represented that: "No. I'm sorry. ] can't. It's just too costly, but you can get more information off of our website at www.veterans-now.com, With every confirmed pledge we do send a brochure about the programs, a receipt for your tax records, and a return envelope for your convenience." (See Script Response 6 on Page 2 of Group Exhibit "K" hereto); and g. Ifprospective donors continue to express concern about the legitimacy ofthe fund raising campaing 18 or say that they were told not to make pledges over the phone, Defendants SAFETY PUBLICATrONS, HERDMAN, and OLIVERA and/or their solicitor agents represented that: "There have been some problems with fraud, that's why we have set up an 800 number. We are also registered with - in the State [ofI1linois], and [when people say not to make pledges over the phone] what they really mean is that you should be careful." (See Script Response 7 on Page 2 of Group Exhibit "K" hereto). 46. Section 17(a) of the Solicitation Act provides in pertinent part as follows: Sec. 17. In any solicitation to the public for a charitable organization by a professional fund raiser or professional solicitor: (a) The public member shall be promptly informed by statement in verbal communications that the solicitation is being made by a paid professional fund raiser. The fund raiser [and] solicitor shall also provide the professional fund raiser's name ... and additionally, in verbal communications, the solicitor's true name must be provided. (225 ILCS 460/17(a).) 47. The requirements of Section 17(a) of the Solicitation Act exist to protect the public and specifically requires a professional fund raiser and its solicitor agents to expressly and promptly disclose to prospective donors (a) that the solicitation is being made by a paid professional fund raiser; (b) the name of the professional fund raiser, and (c) the true identity of the solicitor calling. 48. Based on the responses that Defendants instructed their solicitor agents to give to prospective VNHNeteransNow donors during the period January 1,2010 through at least October 2,2015 as set forth in Group Exhibit "K" hereto, Defendants and/or their solicitor agents failed to expressly and promptly (a) inform prospective donors that the solicitation was being made by a paid professional fund raiser or (b) provide the name of the professional fund raiser. 19 49. In addition, based on the responses that Defendants instructed their solicitor agents to give to prospective VNH/VeteransNow donors during the period January 1,2010 through at leastOctober 2, 2015 as set forth in Group Exhibit "K" hereto, Defendants and/or their solicitor agents: a. Falsely represented to prospective donors that they were "official representatives" of VNHNeteransNow and that they were calling from the charity's "regional business office in Elk Grove Village" - when, in fact, the solicitation was actually being made by a paid professional fund raiser; and b. Erroneously told prospective donors that registrations/annual reports relating to the solicitation were on file with the State (when specifically asked by prospective donors about the legitimacy of the fund raising campaign) - even though the Defendants had never reported and/or accounted for any of their fund raising activities on behalf ofVNHNeteransNow. 50. Section 18 of the Solicitation Act provides in pertinent part as follows: Sec. 18. In any solicitation of contributions for a charitable organization it shall be deemed a misrepresentation offact if any person: * * * (d) Falsely states or represents that they are a member ofa charitable organization. (225 ILCS 460/18.) 51. As a consequence of the actions of Defendants SAFETY PUBLICATIONS, HERDMAN, and OLIVERA and/or their solicitor agents as alleged herein, the ability of the donating public to know who has been performing charitable solicitations on behalfofVNHNeteransNow has been irreparably frustrated, and Defendants APM, HERDMAN and OLIVERA and/or their solicitor agents have misled the public in violation of Sections 17(c) and 18 of the Solicitation Act. 52. By failing to expressly and promptly inform prospective donors that they were paid professionals 20 combined with the affirmative misleading representations made in response to specific questions asked by prospective donors as aforesaid, the ability of the donating public to know who has been performing charitable solicitations on behalf of the Illinois-based charity VNHNeteransNow has been irreparably frustrated, and Defendants and/or their solicitor agents have violated the requirements of Section 17(a) and Section 18 of the Solicitation Act. 53. Section 9 of the Solicitation Act provides in pertinent part: Sec. 9 (c) Whenever the Attorney General shall have reason to believe that a professional fund raiser, or professional solicitor is operating in violation ofthe provisions ofthis Act, or there is employed or is about to be employed in any solicitation or collection ofcontributions for a charitable organization any device, scheme, or artifice to defraud or for obtaining money or property by means of any false pretense, representation or promise, or any false statement has been made in any application, registration, or statement required to be filed pursuant to this Act, in addition to any other action authorized by law, [s1he may bring in. the circuit court an action in the name, and on behalf of the people of the State of Illinois against such ... person ... to enjoin such ... personfrom continuing such solicitation or collection or engaging therein or doing any acts infurtherance thereof, or to cancel any registration statement previouslyfiled with the Attorney General. (d) Upon a showing by the Attorney General in an applicationfor an injunction that any person engaged in the solicitation or collection offunds for charitable purposes, either as an individual or as a member ofa copartnership, or as an officer ofa corporation or as an agent for some other person, or copartnership or corporation, has been convicted in this State or elsewhere ofaftlony or misdemeanor where such felony or misdemeanor involved the misappropriation, misapplication or misuse ofthe money or property ofanother, he may enjoin such persons from engaging in any solicitation or collection offunds for charitable purposes. * * * (f) In any action brought under the provisions ofthis Act, the Attorney General is entitled to recover costs for the use ofthis State. (g) Any person who knowingly violates this Section may be enjoinedfrom such conduct, removedfrom office, enjoinedfrom actingfor charity and subject to punitive damages as deemed appropriate by the circuit court. (h) Any person who violates this Section shall not be entitled to keep or receive monies, fees, salaries, commissions or any compensation, as a result ofthe solicitations or fund raising campaigns, and at the request of the Attorney General such monies, fees, salaries, commissions, or any compensation shall be forfeited and subject to distribution to charitable use as a court ofequity determines. (225 ILCS 460/9(c), (d), (f), (g), and (h).) 54. As a consequence of their actions and violations of the Solicitation Act as aforesaid, Defendants and/or their solicitor agents are subject to the relief set forth in Section 9 of the Solicitation Act. 21 55. Although Defendants SAFETY PUBLICATIONS, HERDMAN and OLIVERA are each presumed to know the laws of Illinois, their violations of the Solicitation For Charity Act as alleged herein are rendered more egregious and knowing by the fact that they have previously been sued by the Illinois Attorney General and have previously consented to a permanent injunction on their ever soliciting in Illinois without complying with the Solicitation Act. 56. In 2002, the Illinois Attorney General brought suit against, among others, Defendants SAFETY PUBLICATIONS, INC., HERDMAN, and OLIVERA (Cook County Case Number 02 CH 20651), alleging, among other things, multiple violations ofthe Solicitation Act (225 ILCS 460/1 et seq.). On November 14, 2003, Defendants SAFETY PUBLICATIONS, INC., HERDMAN, and OLIVERA entered into a Consent Decree in Cook County Case Number 02 CH 20651, in which each of them specifically agreed and stipulated, and the Circuit Court of Cook County (Judge Donald J. O'Brien) ordered, as follows: "(C) T]hat Defendants SAFETY PUBLICAnONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA are hereby permanently enjoined from soliciting charitable contributions in any manner whatsoever in or from the State ofIllinois or from JJ Iinois residents or for and/or on behalf ofany charitable or ostensibly charitable entity or cause in or based in Illinois without complying with the requirements ofthe Solicitation For Charity Act." (Attached hereto and incorporated herein by reference as Exhibit "L" is a copy of the November 14,2003 Consent Decree entered in Cook County Case Number 02 CH 20651 as aforesaid.) 57. Subsequently, in 2007, the Illinois Attorney General brought suit against, among others, Defendants HERDMAN, and OLIVERA (Cook County Case Number 07 CH 26503), alleging, among other things, multiple violations of the Solicitation Act (225 ILCS 460/1 et seq.). On December 21,2007, Defendants HERDMAN, and OLIVERA entered into a Consent Decree in Cook County Case Number 07 CH 26503, in which each of them specifically agreed and stipulated, and the Circuit Court of Cook County (Judge Kathleen M. Pantle) ordered, among other things, as follows: "F. Defendants ... HERDMAN and OLIVERA each hereby agree, and it is hereby ordered, that for purposes offuture conduct, Defendants ... HERDMAN and OLIVERA, either acting individually, collectively, and/or by and/or through any agent(s), employee(s), successor(s) and/or any other person(s) acting in concert with 22 any of them and/or at any of their direction, and/or any corporation, limited liability company, partnership and/or any other entity owned in whole or in part and/or controlled by Defendants HERDMAN and/or OLIVERA, are each hereby permanently enjoined from soliciting charitable contributions in any manner whatsoever in or from Illinois or from lIlinois residents or for and/or on behalf of any charitable and/or ostensibly charitable cause and/or entity and/or organization and/or public safety personnel organization in or based in Illinois without complying with the requirements of the Solicitation For Charity Act (225 ILCS 460/1 et seq.)" (Attached hereto and incorporated herein by reference as Exhibit "M" is a copy of the December 21, 2007 Consent Decree entered in Cook County Case Number 07 CH 26503 as aforesaid.) 58. As a consequence of the foregoing, Defendants SAFETY PUBLICATIONS, HERDMAN, and OLIVERA and/or their solicitor agents have knowingly filed false or misleading professional fund raiser registrations and other documents with the Attorney General in violation of Sections 6 and 9 of the Solicitation Act and they have also knowingly solicited, received, and collected charitable funds by . materially misrepresenting the true identity of the solicitors and/or misleading the public as to the use of the monies collected in violation of Section 17 and 18 of the Solicitation Act. Pursuant to Sections 9(c), 9(d), and 9(g) ofthe Solicitation Act, Defendants SAFETY PUBLICATIONS, HERDMAN, and OLIVERA and/or their solicitor agents should be temporarily, preliminarily and permanently restrained and enjoined from any maimer of fund raising for any charitable purpose(s) conducted within Illinois or involving the solicitation of Illinois residents, and from acting in any fiduciary capacity with respect to charitable assets in Illinois. 59. In addition, pursuant to Section 6(h) and Section 9(h) ofthe Solicitation Act, Defendants SAFETY PUBLICAnONS, HERDMAN, and OLIVERA and/or their solicitor agents are not entitled to keep or receive any fees, salaries, commissions or any compensation they received as a result or on account of any charitable solicitations conducted in violation oflaw, including but not limitedto the $1,363,666.30 paid to them as compensation in connection with their unlawful solicitation campaign representing that monies collected would benefit needy veterans returning horne from the war as aforesaid, and all such monies should be forfeited and distributed for such use(s) as this Court shall determine. 23 60. Because Defendants SAFETY PUBLICATIONS, HERDMAN, and OLIVERA and/or their solicitor agents are not entitled to keep or receive any monies, fees, salaries, commissions or any compensation they received as a result or on account of their activities in violation oflaw as aforesaid, Defendants SAFETY PUBLICA TIONS, HERDMAN, and OLIVERA should be made to fully account for any and all charitable fund raising campaigns they conducted and any and all fees, salaries, commissions or any compensation they have received from the date such fund raising began through the present. 61. Substantial sums of charitable monies have been solicited and collected as a result of Defendants' conduct in violation of the Solicitation Act, the exact amounts and the uses of which are unknown to Plaintiff, and the records of which are in the exclusive control of the Defendants to the exclusion of Plaintiff. Therefore, an accounting is needed. 62. By the conduct of the Defendants as alleged herein, violations of the provisions of the Solicitation Act have occurred, and irreparable harm has occurred and is continuing to occur to charity and to the Plaintiff, the PEOPLE OF THE STATE OF ILLINOIS, for which there is no adequate remedy save in a court of equity. WHEREFORE, the Plaintiffthe PEOPLE OF THE STATE OF ILLINOIS ex ref. LISA MADIGAN, Attorney General of Illinois, prays that this Honorable Court enter an Order: A. Finding and adjudging that Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA have violated the Solicitation For Charity Act (225 ILCS 460/1 et seq.); B. Directing Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA to make a strict accounting of: 1) Any and all fund raising they and/or their solicitor agents conducted on behalfof the 24 Illinois-based charity Vietnow National Headquarters d/b/a VeteransNow, located at 1835 Broadway, Rockford, Illinois 61104, from the date such solicitations began through the present, regardless of whether or not such fund raising resulted in a pledge or contribution; 2) Any and all monies, fees, salaries, commissions or any compensation they and/or their solicitor agents received from Vietnow National Headquarters d/b/a VeteransNow and/or as a result or on account of the solicitations or fund raising campaigns they and/or solicitor agents conducted using the names "Vietnow National Headquarters" and/or "VeteransNow" from the date such fund raising began through the present; and 3) Any and all assets, receipts, expenses and disbursements from all funds raised, collected or promised as a result of their fund raising using the names "Vietnow National Headquarters" and/or "VeteransNow" from the date such fund raising began through the present; . C. Directing Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA to make a strict accounting of: 1) Any and all fund raising they and/or their solicitor agents conducted on behalfof any charity other than Vietnow National Headquarters d/b/a VeteransNow during the period from January 1,2010 through the present, including but not limited to those charities listed on Exhibits "F", "G", H", and "I" hereto, regardless of whether or not such fund raising resulted in a pledge or contribution; 2) Any and all monies, fees, salaries, commissions or any compensation they and/or their solicitor agents received as a result or on account of such fund raising conducted on behalfof any charity other than Vietnow National Headquarters d/b/a VeteransNow during the period from January 1, 2010 through the present, including but not limited to those charities listed on Exhibits "F", "G", H", and "I" hereto; and 25 ,/ 3) Any and all assets, receipts, expenses and disbursements from all funds raised, collected or promised as a result of such fund raising conducted on behalf of any charity other than Vietnow National Headquarters d/b/a VeteransNow during the period from January 1,2010 through the present, including but not limited to those charities listed on Exhibits "F", "G", H", and "I" hereto; D. Pursuant to Section 9(c) and 9(g) ofthe Solicitation For Charity Act (225 1LCS 460/9(c) and 9(g)), temporarily restraining and preliminarily and permanently enjoining Defendants SAFETYPUBLICAT10NS,INC.,ADAMHERDMAN,andARTHUROLIVERA,andall persons acting in concert or participation with them, whether by contract or otherwise, from: 1) Soliciting, receiving or holding assets for any charitable or ostensibly charitable purpose or on behalf of any Illinois-based charitable or ostensibly-charitable trust, entity, or cause, and from acting in any fiduciary capacity with respect to charitable assets; 2) Disbursing, transferring, expending, or liquidating any funds, assets, bank accounts or depository accounts without court approval, and freezing all such funds, assets and accounts; and 3) Transferring, selling or encumbering any assets or property until the resolution of this cause; E. Pursuant to Section 9(d) of the Solicitation For Charity Act (225 1LCS 460/9(d)), temporarily restraining and preliminarily and permanently enjoining Defendant ARTHUR OLIVERA, and all persons acting in concert or participation with him, whether by contract or otherwise, from: 1) Soliciting, receiving or holding assets for any charitable or ostensibly charitable purpose or on behalf of any Illinois-based charitable or ostensibly-charitable trust, entity, or cause, and from acting in any fiduciary capacity with respect to charitable assets; 26 2) Disbursing, transferring, expending, or liquidating any funds, assets, bank accounts or depository accounts without court approval, and freezing all such funds, assets and accounts; and 3) Transferring, selling or encumbering any assets or property until the resolution of this cause; F. Pursuant to Sections 6(h) of the Solicitation Act, subjecting Defendants SAFETY PUBLICATIONS, HERDMAN, and OLIVERA to a $5,000-per-violation civil penalty for each violation of Section 6 of the Solicitation Act that this Court determines has been committed by Defendants; G. Pursuant to Section 6(h) and Section 9(h) of the of the Solicitation For Charity Act (225 ILCS 460/6(h) and 460/9(h», ordering that Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA shall not be entitled to keep and must forfeit any and all monies, fees, salaries, commissions, profits or any compensation whatsoever from the proceeds of the solicitations conducted by them in violation of the Solicitation For Charity Act; H. Following and based upon the accounting requested in paragraphs B and C above, ordering thatany and all monies, fees, salaries, commissions, profits or any compensation whatsoever that Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA received as a result or on account of any charitable solicitations and/or fund raising conducted by them and/or any oftheir solicitor agents in violation oflaw, including but not limited to the $1,363,666.30 they took as compensation from public contributions made in response to express representations that such would assist Veterans returning home from war as aforesaid, be forfeited and turned over to the Attorney General for distribution to such bona fide registered Illinois charities that actually assist veterans returning home from war and/or for such other charitable use(s) as this Court shall determine; I. Entering judgment in favor of the Plaintiff and against the Defendants SAFETY 27 PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA in an amount to be determined based on their accounting, but at least $1,363,666.30 plus all applicable civil penalties, and directing that all funds recovered by Plaintiffby judgment hereunder shall be distributed by the Attorney General to such bona fide registered Illinois charities that actually assist veterans returning home from war and/or for such other charitable use(s) as this Court shall determine; J. Requiring Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA to pay the costs incurred in the investigation and prosecution of this cause; and K. Granting such other and further relief as this Court deems just and equitable under the circumstances of this cause. COUNT II UNREGISTERED FUND RAISING 1-62. The Plaintiffhereby repeats and realleges Paragraphs 1 through 62 ofthis Complaint as Paragraphs 1 through 62 of Count II, and incorporates the same by reference as though fully set forth herein. 63. As previously alleged herein, Defendant SAFETY PUBLICATIONS is a "professional fund raiser" as that term is defined in Section 1(a) of the Solicitation Act as aforesaid. 64. Section 6(a) of the Solicitation Act requires professional fund raisers who solicit or intend to solicit in or from the State of Illinois for public charitable contributions to, among other things, register with the Illinois Attorney General prior to soliciting the public. Section 6(a) provides as follows: (a) No person shall act as a professional fund raiser or allow a professional fund raiser entity he owns, manages, or controls to act for a charitable organization required to register pursuant to Section 2 ofthis Act [225 ILCS 460/2J, orfor any organization as described in Section 3 ofthis Act [225 ILCS 460/3J before he has registered himselfor the entity with the Attorney General or after the expiration or cancellation of such registration or any renewal thereof (225 ILCS 460/6(a)). 28 65. As previously alleged, Defendants SAFETY PUBLICATIONS, HERDMAN, and/or OLIVERA filed Forms PFR-Ol to register/re-register SAFETY PUBLICATIONS with the Illinois Attorney General as a professional fund raiser for the registration periods expiring June 30, 2011, June 30, 2012, June 30, 2013 " and June 30 2014 (see Exhibits "B" , "c" " "D" and "E") . 66. SAFETY PUBLICATIONS was registered as a professional fund raiser through June 30,2015; however, Defendants SAFETY PUBLICATIONS, HERDMAN, and/or OLIVERA never filed complete Professional Fund Raiser registration materials for SAFETY PUBLICATIONS with the Attorney General prior to June 30, 2015, or at any subsequent date, and, from July 1,2015 and continuing through the present, Defendant SAFETY PUBLICATIONS has not been registered as a professional fund raiser pursuant to Section 6(a) of the Solicitation Act (225 ILCS 460/6(a)). 67. Notwithstanding the foregoing, during the period from at least July 1,2015 through at least October 2,2015, Defendants SAFETY PUBLICATIONS, HERDMAN, and/or OLIVERA and/or their solicitor agents solicited, collected, and received at least $32,464.00 in charitable contributions for and/or on behalf ofthe Illinois-based charity VNHlVeteransNow, and said Defendants received at least $27,255.72 ofthose funds as compensation, as follows: WeekEnding 7/3/2015 7/10/2015 7/17/2015 7/24/2015 7/31/2015 8/7/2015 8/14/2015 8/21/2015 8/28/2015 9/4/2015 9/11/2015 9/18/2015 9/25/2015 10/2/2015 Total Compensation of Safety Publications $ 2,221.80 $ 2,076.48 $ 2,363.44 $ 1,688.40 $ 2,216.04 $ 1,944.60 $ 2,243.44 $ 1,843.80 $ 2,080.80 $ 1,415.40 $ 1,428.00 $ 1,627.60 $ 1,991.64 $ 2,114.28 $ 27,255.72 29 Total Solicited, Collected & Received $ 2,645.00 $ 2,472.00 $ 2,816.00 $ 2,010.00 $ 2,641.00 $ 2,315.00 $ 2,676.00 $ 2,195.00 $ 2,470.00 $ 1,685.00 $ 1,700.00 $ 1,940.00 $ 2,371.00 $ 2,527.00 $ 32,464.00 68. Because Defendant SAFETY PUBLICATIONS was not registered as a professional fund raiser during the period from July 1, 2015 through the present, Defendants SAFETY PUBLICATIONS, HERDMAN, and/or OLIVERA have committed a separate violation ofSection 6(a) ofthe Solicitation Act each and every time Defendants SAFETY PUBLICATIONS, HERDMAN, and/or OLIVERA and/or their solicitor agents solicited, collected, and received contributions in Illinois, from Illinois, and/or on behalf of a charitable organization residing in Illinois, such as VNHNeteransNow, during the period from July 1, 2015 through the present. 69. Because each instance in which Defendants SAFETY PUBLICATIONS, HERDMAN and OLIVERA and/or any oftheir solicitor agents solicited, received, and/or collected contributions in Illinois on behalf ofVNHNeteransNow during the period from at July 1,2015 through the present constitutes a separate violation of Section 6(a) of the Solicitation Act, Defendants SAFETY PUBLICATIONS, HERDMAN and OLIVERA should be required by this Court to make a strict accounting ofall solicitations they and/or their solicitor agents made on behalf ofVNHNeteransNow (and any other charity) during the period from at least July 1,2015 through the present, regardless ofwhether or not such solicitations resulted in a pledge or contribution. 70. In addition, as previously alleged, during the period from at least January 1, 2010 through at least October 2, 2015, Defendants SAFETY PUBLICATIONS, HERDMAN, and/or OLIVERA and/or their solicitor agents solicited, received, and collected at least $1,626,045.29 from the public under express representations that such would assist veterans returning home from war; however, Defendants obtained those monies while using solicitation methods that violated the Solicitation Act and they never filed any Professional Fund Raiser Annual Financial Reports (Forms PFR-02) as required by Section 6(d) of the 30 . _'ffl"',-, , ",- ~ ,. Solicitation Act during that period disclosing or otherwise accounting to the public or the Attorney General for the factthat SAFETYPUBLJCATIONS (rather than VNH/VeteransNow) received$l ,363,666.30 ofthe $1,626,045.29 collected for the benefit ofVNH/VeteransNow and that charity only received $166,183.10 of said funds. Indeed, the total number ofcontributions solicited, received, and collected by the Defendants in Illinois, from I1linois, and/or on behalf of any and all charitable organization residing in Illinois, including but not limited to VNH/VeteransNow during the period from at least January 1, 2010 through at least October 2,2015 is presently unknown to the Plaintiff. Such records are in the exclusive control ofthe Defendants to the exclusion of Plaintiff. 71. Section 6(h) of the Solicitation Act provides as follows: (h) Any person who violates any ofthe provisions ofthis Section shall be subject to civil penalties of$5,000 for each violation and shall not be entitled to keep or receivefees, salaries, commissions or any compensation as a result or on account ofthe solicitations or fund raising campaigns, and at the request ofthe Attorney General or the charitable organization, a court may order that such be forfeited and paid toward and used for a charitable purpose as the court in its discretion determines is appropriate or placed in the Illinois Charity Bureau Fund. (225 ILCS 460/6(h).) 72. For each violation of Section 6(a) and/or 6(d) of the Solicitation Act that this Court determines, after an accounting, to have been committed by Defendants SAFETY PUBLICATIONS, HERDMAN and OLIVERA, said Defendants should each be subject to a $5,000-per-violation civil penalty pursuant to Section 6(h) of the Solicitation Act. . 73. , Section 9 of the Solicitation Act provides in pertinent part: Sec. 9 (c) Whenever the Attorney General shall have reason to believe that a professional fund raiser, or professional solicitor is operating in violation ofthe provisions ofthis Act, or there is employed or is about to be employed in any solicitation or collection ofcontributions for a charitable organization any device, scheme, or artifice to defraud or for obtaining money or property by means of any false pretense, representation or promise, or any false statement has been made in any application, registration, or statement required to be filed pursuant to this Act, in addition to any other action authorized by law, [s]he 31 may bring in the circuit court an action in the name, and on behalf of the people of the State ofIllinois against such ... person ... to enjoin such ... personfrom continuing such solicitation or collection or engaging therein or doing any acts infurtherance thereof, or to cancel any registration statementpreviouslyfiled with the Attorney General. (d) Upon a showing by the Attorney General in an application for an injunction that any person engaged in the solicitation or collection offunds for charitable purposes, either as an individual or as a member ofa copartnership, or as an officer ofa corporation or as an agent for some other person, or copartnership or corporation, has been convicted in this State or elsewhere ofa felony or misdemeanor where such felony or misdemeanor involved the misappropriation, misapplication or misuse ofthe money or property ofanother, he may enjoin such persons from engaging in any solicitation or collection offunds for charitable purposes. * * * (f) In any action brought under the provisions ofthis Act, the Attorney General is entitled to recover costs for the use ofthis State. (g) Anyperson who knowingly violates this Section may be enjoinedfrom such conduct, removedfrom office, enjoinedfrom actingfor charity and subject to punitive damages as deemed appropriate by the circuit court. (h) Any person who violates this Section shall not be entitled to keep or receive monies, fees, salaries, commissions or any compensation, as a result of the solicitations or fund raising campaigns, and at the request of the Attorney General such monies, fees, salaries, commissions, or any compensation shall be forfeited and subject to distribution to charitable use as a court ofequity determines. (225 ILCS 460/9(c), (d), (f), (g), and (h).) 74. As a consequence oftheir actions and violations of the Solicitation Act as aforesaid, Defendants SAFETY PUBLICATIONS, HERDMAN, and OLIVERA and/or their solicitor agents are subject to the relief set forth in Section 9 of the Solicitation Act. 75. In addition, pursuant to Section 6(h) and Section 9(h) ofthe Solicitation Act, Defendants SAFETY PUBLICATIONS, HERDMAN, and OLIVERA and/or their solicitor agents are not entitled to keep or receive any fees, salaries, commissions or any compensation they received as a result or on account of any charitable solicitations conducted in violation oflaw, including but not limited to the $1,363,666.30 paid to them as compensation in connection with their unlawful solicitation campaign representing that monies collected would benefit needy veterans returning home from the war as aforesaid, and all such monies should be forfeited and distributed for such use(s) as this Court shall determine. 76. Because Defendants SAFETY PUBLICATIONS, HERDMAN, and OLIVERA and/or their solicitor 32 agents are not entitled to keep or receive any monies, fees, salaries, commissions or any compensation they received as a result or on account of their activities in violation of law as aforesaid, Defendants SAFETY PUBLICATrONS, HERDMAN, and OLIVERA should be made to fully account for any and all charitable fund raising campaigns they conducted and any and all fees, salaries, commissions or any compensation they have received from the date such fund raising began through the present. 77. Substantial sums of charitable monies have. been solicited and collected as a result of Defendants' conduct in violation of the Solicitation Act, the exact amounts and the uses of which are unknown to Plaintiff, and the records of which are in the exclusive control of the Defendants to the exclusion of Plaintiff. Therefore, an accounting is needed. I I 78. By the conduct of the Defendants as alleged herein, violations of the provisions of the Solicitation . ! Act have occurred, and irreparable harm has occurred and is continuing to occur to c~arity and to the Plaintiff, the PEOPLE OF THE STATE OF ILLINOIS, for which there is no adequate remedy save in a court of equity. WHEREFORE, the Plaintiffthe PEOPLE OF THE STATE OF ILLINOIS ex rei. LISA MADIGAN, Attorney General of Illinois, prays that this Honorable Court enter an Order: I I A. Finding and adjudging that Defendants SAFETY PUBLICATIONS,: INC., ADAM i HERDMAN, and ARTHUR OLIVERA have violated the Solicitation For Charity Act (225 ILCS 460/1 et seq.); B. Directing Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA to make a strict accounting of: 1) Any and all fund raising they and/or their solicitor agents conducted on behalfof the 33 Illinois-based charity Vietnow National Headquarters d/b/a VeteransNow, located at 1835 Broadway, Rockford, Illinois 61104, from the date such solicitations began through the present, regardless of whether or not such fund raising resulted in a pledge or contribution; 2) Any and all monies, fees, salaries, commissions or any compensation they and/or their solicitor agents received from Vietnow National Headquarters d/b/a VeteransNow and/or as a result or on account of the solicitations or fund raising campaigns they and/or solicitor agents conducted using the names "Vietnow National Headquarters" and/or "VeteransNow" from the date such fund raising began through the present; and 3) Any and all assets, receipts, expenses and disbursements from all funds raised, collected or promised as a result of their fund raising using the names "Vietnow National Headquarters" and/or "VeteransNow" from the date such fund raising began through the present; C. Directing Defendants SAFETY PUBLICAnONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA to make a strict accounting of: 1) Any and all fund raising they and/or their solicitor agents conducted on behalfof any charity other than Vietnow National Headquarters d/b/a VeteransNow during the period from January 1,2010 through the present, including but not limited to those charities listed on Exhibits "F", "G", H", and "1" hereto, regardless of whether or not such fund raising resulted in a pledge or contribution; 2) Any and all monies, fees, salaries, commissions or any compensation they and/or their solicitor agents received as a result or on account of such fund raising conducted on behalf of any charity other than Vietnow National Headquarters d/b/a VeteransNow during the period from January 1,2010 through the present, including but not limited to those charities listed on Exhibits "F", "G", H", and "1"hereto; and 34 .;,,,,;,;~,-~, \I'*''''~~f ·r 3) Any and all assets, receipts, expenses and disbursements from all funds raised, collected or promised as a result of such fund raising conducted on behalf of any charity other than Vietnow National Headquarters d/b/a VeteransNow during the period from January 1,2010 through the present, including but not limited to those charities listed on Exhibits "G", "H", I", and "J" hereto; D. Pursuant to Section 9(c) and 9(g) ofthe Solicitation For Charity Act (225 ILCS 460/9(c) and 9(g)), temporarily restraining and preliminarily and permanently enjoining Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA, and all persons acting in concert or participation with them, whether by contract or otherwise, from: 1) Soliciting, receiving or holding assets for any charitable or ostensibly charitable purpose or on behalf of any Illinois-based charitable or ostensibly-charitable trust, entity, or cause, and from acting in any fiduciary capacity with respect to charitable assets; 2) Disbursing, transferring, expending, or liquidating any funds, assets, bank accounts or depository accounts without court approval, and freezing all such funds, assets I and accounts; and 3) Transferring, selling or encumbering any assets or property until the resolution of this cause; E. Pursuant to Section 9(d) of the Solicitation For Charity Act (225 ILCS 460/9(d)), temporarily restraining and preliminarily and permanently enjoining Defendant ARTHUR OLIVERA, and all persons acting in concert or participation with him, whether by contract or otherwise, from: 1) Soliciting, receiving or holding assets for any charitable or oste~sibly , charitable purpose or on behalf of any Illinois-based charitable or ostensibly-charitable trust, , - i entity, or cause, and from acting in any fiduciary capacity with respect to charitable assets; 35 2) Disbursing, transferring, expending, or liquidating any funds, assets, bank accounts or depository accounts without court approval, and freezing all such funds, assets and accounts; and 3) Transferring, selling or encumbering any assets or property until the resolution of this cause; F. Pursuant to Sections 6(h) of the Solicitation Act, subjecting Defendants SAFETY PUBLICATIONS, HERDMAN, and OLIVERA to a $5,000-per-violation civil penalty for each violation of Section 6 of the Solicitation Act that this Court determines has been committed by Defendants; G. Pursuant to Section 6(h) and Section 9(h) of the ofthe Solicitation For Charity Act (225 ILCS 460/6(h) and 460/9(h)), ordering that Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA shall not be entitled to keep and must forfeit any and all monies, fees, salaries, commissions, profits or any compensation whatsoever from the proceeds of the solicitations conducted by them in violation of the Solicitation For Charity Act; H. Following and based upon the accounting requested in paragraphs Band C above, ordering that any and all monies, fees, salaries, commissions, profits or any compensation whatsoever that Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA received as a result or on account of any charitable solicitations and/or fund raising conducted by them and/or any oftheir solicitor agents in violation oflaw, including but not limited to the $1,363,666.30 they took as compensation from public contributions made in response to express representations that such would assist Veterans returning home from war as aforesaid, be forfeited and turned over to the Attorney General for distribution , to such bona fide registered Illinois charities that actually assist veterans returning home , from war and/or for such other charitable use(s) as this Court shall determine; 1. Entering judgment in favor of the Plaintiff and against the Defendants SAFETY 36 PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA in an amount to be determined based on their accounting, but at least $1,363,666.30 plus all applicable civil penalties, and directing that all funds recovered by Plaintiffby judgment hereunder shall be distributed by the Attorney General to such bona fide registered Illinois charities that actually assist veterans returning home from war and/or for such other charitable use(s) as this Court shall determine; J. Requiring Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA to pay the costs incurred in the investigation and prosecution of this cause; and K. Granting such other and further relief as this Court deems just and equitable under the circumstances of this cause. COUNT III STIPULATED PENALTIES FOR VIOLATIONS OF COURT ORnER 1-78. The Plaintiffhereby repeats and re-alleges Paragraphs 1through 78 ofthis Complaint as Paragraphs 1 through 78 of Count III, and incorporates the same by reference as though fully set forth herein. 79. As previously alleged, in 2002, the Illinois Attorney General brought suit against, among others, Defendants SAFETY PUBLICATIONS, INC., HERDMAN, and OLIVERA (Cook County Case Number 02 CH 20651), alleging, among other things, multiple violations of the Solicitation Act (225 ILCS 460/1 et seq.). On November 14, 2003, Defendants SAFETY PUBLICATIONS, INC., HERDMAN, and OLIVERA entered into a Consent Decree in Cook County Case Number 02 CH 20651 (Exhibit "L" hereto), in which each of them specifically agreed and stipulated, and the Circuit Court of Cook County (Judge Donald J. O'Brien) ordered, as follows: "(C) T]hat Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA are hereby permanently enjoined from soliciting charitable contributions in any manner whatsoever in or from the State of1llinois or from Illinois residents or for and/or on behalfofany charitable or ostensibly charitable entity or cause in or based in Illinois without complying with the requirements ofthe Solicitation For Charity Act." ' 37 (See Exhibit "L" hereto.) 80. Also as previously alleged, in 2007, the Illinois Attorney General again sued Defendants HERDMAN and OLIVERA, in Cook County Case Number 07 CH 26503, alleging, among other things, multiple violations of the Solicitation Act (225 ILCS 460/1 et seq.). On December 21,2007, Defendants HERDMAN, and OLIVERA entered into a Consent Decree in Cook County Case Number 07 CH 26503 (Exhibit "M" hereto), in which each of them specifically agreed and stipulated, and the Circuit Court of Cook County (Judge Kathleen M. Pantle) ordered, among other things, as follows: "F. Defendants ... HERDMAN and OLIVERA each hereby agree, and it is hereby ordered, that for purposes offuture conduct, Defendants ... HERDMAN and OLIVERA, either acting individually, collectively, and/or by and/or through any agent(s), employee(s), successor(s) and/or any other person(s) acting in concert with any of them and/or at any of their direction, and/or any corporation, limited liability company, partnership and/or any other entity owned in whole or in part and/or controlled by Defendants HERDMAN and/or OLIVERA, are each hereby permanently enjoined from soliciting charitable contributions in any manner whatsoever in or from Illinois or from Illinois residents or for and/or on behalf of any charitable and/or ostensibly charitable cause and/or entity and/or organization and/or public safety personnel organization in or based in llJinois without complying with the requirements of the Solicitation For Charity Act (225 ILCS 460/] et seq.); G. Defendants ... HERDMAN and OLIVERA hereby each agree, and it is hereby Ordered, that if at any time subsequent to the entry of this Consent Decree and Judgment, Defendants ... HERDMAN and OLIVERA, either acting individually, collectively, and/or by and/or through anyagent(s), employee(s), successor(s) and/or any person(s) acting in concert with any of them and/or at any of their direction, and/or any corporation, limited liability company, partnership and/or any other entity owned and/or controlled in whole or in part by Defendants HERDMAN and/or OLIVERA, are discovered to have violated any of the injunctions as provided in [Paragraph] F herein in any manner or in any degree, the Plaintiff, the PEOPLE· OF THE STATE OF ILLINOIS, shall, upon finding of such violation before the Chancery Division of the Circuit Court ofCook County, Illinois, be entitled by the irrevocable agreement ofDefendants ... HERDMAN and OLIVERA to a Stipulated Penalty ill the form of a judgment in favor of the Plaintiff PEOPLE and against the Defendants ... HERDMAN and OLIVERA jointly and severally in the amount of TWO THOUSAND DOLLARS ($2,000.00) for each violation, and such shall be in addition to any and all applicable judgments, surcharges, forfeitures, fines and/or penalties as appropriate and as provided for under the provisions ofthe Charitable Trust Act (760 ILCS 55/] et seq.) and/or the Solicitation For Charity Act (225 ILCS 460/1 et seq.), and shall further be in addition to any other and further relief as the Court deems appropriate for said violations ...; H. Defendants ... HERDMAN and OLIVERA hereby agree and consent that the TWO THOUSAND DOLLARS ($2,000.00) judgment referred to in Paragraph G herein as relieffor each and every violation of the injunctions as provided in [Paragraph] F herein, shall not require any proof of further loss and shall be entered by the Court upon the finding of a violation of the injunctions contained in [Paragraph] F herein by Defendants ...HERDMAN and OLIVERA and/or any oftheir agents, employees and/or successors in int~rest" 38 (See Exhibit "M" hereto.) 81. As set forth with specificity in Counts I and II above, Defendants SAFETY PUBLICATIONS, HERDMAN, and OLIVERA and/or their solicitor agents have, during the period from at least January 1, 2010 through at least October 2, 2015, solicited, received, and/or collected charitable contributions on behalfofan Illinois charitable organization without complying with the requirements ofthe Solicitation For Charity Act (225 ILCS 460/1 et seq.). Each violation of the Solicitation Act as set forth in Counts I and II above are separate violations of the injunctions set forth in Paragraph F of the Consent Decree and Judgment entered in.Cook County Case Number 07 CH 26503 (see Exhibit "M" hereto). 82. As set forth in Paragraphs G and H of the Consent Decree and Judgment entered in Cook County Case Number 07 CH 26503 (see Exhibit "M" hereto), Defendants HERDMAN and OLIVERA specifically and irrevocably agreed that, if at any time subsequent to the entry of said Consent Decree and Judgment, Defendants HERDMAN and OLIVERA - either "acting individually, collectively, and/or by and/or through ... any corporation ... or ... other entity owned and/or controlled in whole or in part by Defendants HERDMANand/orOLIVERA"(e.g.,inc1udingDefendantSAFE-r:YPUBLICATIONS)-arediscovered to have violated Paragraph F Consent Decree and Judgment "in any manner or in any degree", the PEOPLE may bring an action before the Chancery Division of the Circuit Court of Cook County, Illinois, and upon a finding of such violation, be entitled by the irrevocable agreement of Defendants HERDMAN and OLIVERA to a "Stipulated Penalty in the form ofa judgment against the Defendants, jointly and severally, in the amount of TWO THOUSAND DOLLARS ($2,000.00) for each violation," and such Stipulated Penalty "shall be in addition to any and all applicable judgments, surcharges, forfeitures, fines and/or penalties as appropriate and as provided for under the provisions of the Solicitation For Charity Act (225 ILCS 460/1 et seq.)." (See Exhibit "M" hereto). 39 83. As a consequence oftheir actions and violations ofthe Solicitation Act and the Consent Decree and Judgment entered in Cook County Case Number 07 CH 26503 (see Exhibit "Moo hereto) as aforesaid, Defendants SAFETY PUBLICA nONS, HERDMAN, and OLIVERA and/or their solicitor agents are subject to all applicable Solicitation Act injunctive and monetary relief set forth in Counts I and II above as well a $2,000-per-violation Stipulated Penalty pursuant to Paragraphs G and H of the Consent Decree and Judgment entered in Cook County Case Number 07 CH 26503 (see Exhibit "Moo hereto). 84. Because Defendants SAFETY PUBLICA nONS, HERDMAN, and OLIVERA and/or their solicitor agents are subject to monetary and injunctive relief as well as a surcharge of any and all monies, fees, salaries, commissions or any compensation they received as a result or on account of their activities in violation oflaw and Court Orders as aforesaid, Defendants SAFETY PUBLICATIONS, HERDMAN, and OLIVERA should be made to fully account for any and all charitable fund raising campaigns they conducted and any and all fees, salaries, commissions or any compensation they have received from the date such fund raising began through the present. 85. Substantial sums of charitable monies have been solicited and collected as a result of Defendants' conduct in violation of the Solicitation Act, the exact amounts and the uses of which are unknown to Plaintiff, and the records of which are in the exclusive control of the Defendants to the exclusion of Plaintiff. Therefore, an accounting is needed. 86. By the conduct of the Defendants as alleged herein, violations of the provisions of the Solicitation Act have occurred, and irreparable harm has occurred and is continuing to occur to charity and to the Plaintiff, the PEOPLE OF THE STATE OF ILLINOIS, for which there is no adequate remedy save in a court of equity. 40 WHEREFORE, the Plaintiffthe PEOPLE OF THE STATE OF ILLINOIS €lx ref. LISA MADIGAN, Attorney General of Illinois, prays that this Honorable Court enter an Order: A. Finding and adjudging that Defendants SAFETY PUBLICATIONS, U\IC., ADAM HERDMAN, and ARTHUR OLIVERA have violated the Solicitation For Charity Act (225 ILCS 460/1 et seq.); B. Finding and adjudging that Defendants ADAM HERDMAN and ARTHUR OLIVERA have violated the injunctions set forth in Paragraph F of the Consent Decree and Judgment entered in Cook County Case Number 07 CH 26503 (see Exhibit "N" hereto); C. Directing Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA to make a strict accounting of: 1) Any and all fund raising they and/or their solicitor agents conducted on behalf of the Illinois-based charity Vietnow National Headquarters d/b/a VeteransNow, located at 1835 Broadway, Rockford, Illinois 61104, from the date such solicitations began through the present, regardless of whether or not such fund raising resulted in a pledge or contribution; 2) Any and all monies, fees, salaries, commissions or any compensation they and/or their solicitor agents received from Vietnow National Headquarters d/b/a VeteransNow and/or as a result or on account of the solicitations or fund raising campaigns they and/or solicitor agents conducted using the names "Vietnow National Headquarters" and/or "VeteransNow" from the date such fund raising began through the present; and 3) Any and all assets, receipts, expenses and disbursements from all funds raised, collected or promised as a result of their fund raising using the names "Vietnow National Headquarters" and/or "VeteransNow" from the date such fund raising began through the present; 41 D. Directing Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA to make a strict accounting of: 1) Any and all fund raising they and/or their solicitor agents conducted on behalfof any charity other than Vietnow National Headquarters d/b/a VeteransNow during the period from January 1, 2010 through the present, including but not limited to those charities listed on Exhibits "F", "G", "H", and "I" hereto, regardless of whether or not such fund raising resulted in a pledge or contribution; 2) Any and all monies, fees, salaries, commissions or any compensation they and/or their solicitor agents received as a result or on account of such fund raising conducted on behalf of any charity other than Vietnow National Headquarters d/b/a VeteransNow during the period from January 1, 2010 through the present, including but not limited to those charities listed on Exhibits "F", "G", "H", and "I" hereto; and 3) Any and all assets, receipts, expenses and disbursements from all funds raised, collected or promised as a result of such fund raising conducted on behalf of any charity other than Vietnow National Headquarters d/b/a VeteransNow during the period from January 1,2010 through the present, including but not limited to those charities listed on Exhibits "F", "G", "H", and "I" hereto; E. Pursuant to Section 9(c) and 9(g) ofthe Solicitation For Charity Act (225 ILCS 460/9(c) and 9(g)), temporarily restraining and preliminarily and permanently enjoining Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA, and all persons acting in concert or participation with them, whether by contract or otherwise, from: 1) Soliciting, receiving or holding assets for any charitable or ostensibly charitable purpose or on behalf of any Illinois-based charitable or ostensibly-charitable trust, entity, or cause, and from acting in any fiduciary capacity with respect to charitable assets; 42 2) Disbursing, transferring, expending, or liquidating any funds, assets, bank accounts or depository accounts without court approval, and freezing all such funds, assets and accounts; and 3) Transferring, selling or encumbering any assets or property until the resolution of this cause; F. Pursuant to Section 9(d) of the Solicitation For Charity Act (225 ILCS 460/9(d)), temporarily restraining and preliminarily and permanently enjoining Defendant ARTHUR OLIVERA, and all persons acting in concert or participation with him, whether by contract or otherwise, from: 1) Soliciting, receiving or holding assets for any charitable or ostensibly charitable purpose or on behalf of any Illinois-based charitable or ostensibly-charitable trust, entity, or cause, and from acting in any fiduciary capacity with respect to charitable assets; 2) Disbursing, transferring, expending, or liquidating any funds, assets, bank accounts or depository accounts without court approval, and freezing all such funds, assets and accounts; and 3) Transferring, selling or encumbering any assets or property until the resolution of this cause; G. Pursuant to Paragraphs G and H of the Consent Decree and Judgment entered in Cook County Case Number 07 CH 26503 (see Exhibit "N" hereto), subjecting Defendants SAFETY PUBLICATIONS, HERDMAN, and OLIVERA to the $2,000-per-violation Stipulated Penalty for each violation Paragraph F ofsaid Consent Decree and Judgment that this Court determines has been committed by Defendants; H. Pursuant to Sections 6(h) of the Solicitation Act, subjecting Defendants SAFETY PUBLICATIONS, HERDMAN, and OLIVERA to a $5,000-per-violation civil penalty for each violation of Section 6 of the Solicitation Act that this Court determines has been 43 committed by Defendants; I. Pursuant to Section 6(h) and Section 9(h) of the of the Solicitation For Charity Act (225 ILCS 460/6(h) and 460/9(h)), ordering that Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN,and ARTHUR OLIVERA shall not be entitled to keep and must forfeit any and all monies, fees, salaries, commissions, profits or any compensation whatsoever from the proceeds of the solicitations conducted by them in violation of the Solicitation For Charity Act; J. Following and based upon the accounting requested in paragraphs Band C above, ordering that any and all monies, fees, salaries, commissions, profits or any compensation whatsoever that Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA received as a result or on account of any charitable solicitations and/or fund raising conducted by them and/or any oftheir solicitor agents in violation oflaw, including but not limited to the $1,363,666.30 they took as compensation from public contributions made in response to express representations that such would assist Veterans returning home from war as aforesaid, be forfeited and turned over to the Attorney General for distribution to such bona fide registered Illinois charities that actually assist veterans returning home from war and/or for such other charitable use(s) as this Court shall determine; K. Entering judgment in favor of the Plaintiff and against the Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA in an amount to be determined based on their accounting, but at least $1,363,666.30 plus all applicable civil penalties, and directing that all funds recovered by Plaintiffby judgment hereunder shall be distributed by the Attorney General to such bona fide registered Illinois. charities that actually assist veterans returning home from war and/or for such other charitable use(s) as this Court shall determine; L. Requiring Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA to pay the costs incurred in the investigation and prosecution of this 44 cause; and M. Granting such other and further relief as this Court deems just and equitable under the circumstances of this cause. THE PEOPLE OF THE STATE ILLINOIS ex rei. LISA MADIGAN, Attorney General of Illinois BY: THERESE HARRIS #99000 BARRY S. GOLDBERG #99000 PASQUALE ESPOSITO #99000 Assistant Attorneys General Office of the Illinois Attorney General Charitable Trust Bureau 100 West Randolph Street, 11th Floor Chicago, Illinois 60601-3175 Telephone: (312) 814-2595 Email: bgoldberg@atg.state.il.us pesposito@atg.state.il.us 45 OF VERIFICATION I, Nicole Hayes, an accountant employed by the Office of the Illinois Attorney General's Charitable Trusts Buteau, under penalties of perjury as provided by law pursuant to Section 1-109 of the Code of Civil Procedure, certify that the statements set forth in this instrument are true and correct except as to matters therein stated to be upon information and belief, and as to such matters, I certify that I believe the same to be true. Date: Nicole Hayes ....•. .... .... .. 99575993 ~ a~11l/~2' ~J ·IiOl P3S! : 01 .:J C;ok ccunt!.ae,c-der . ~,.D& 1998-07-D6 ·lD.SBz~B . ~ . .. . ~tQtt . 8f illinois.·· .'. ". :em£t, of '. '." , ", ''th£~t[rE'tilrlof~tgt~ ". ­ .. . .' ' .. }: :;., , :j . :. ~ .',' . II G~orge H. Ryan, Secretary of State' of the State of ," . JIJlnDis~by virtue of the powers vested In me by law9 do.hereby Issue this certlncate and· attach hereto a copy or the' Application '. of the' aforesaid corporation. . .' . ". . No'" Therefore. I, , in 'Cttetimoug -tDhEftOr I hereto set my hand and. cause to be '. affJlCed lheGreat Seal of the State of IJllnols. at the City of Springfield. this,' 30TJI t '. day of J1MI . A.D. 19 ,.ta and 01 the Independence of the (Jnlted States the two' hundred and · I: !, · · ,, , \f.....':) ". Z/3 3~'Vd ' . ,~. 22m) Secreta" ofState C'212.2 ·,1 I ~ .'BCA-2.1 0 .ARTiCL~OFINCORPORATION 9~?3h"2 .'2 :: c' .• . St,'!)MJf IN CUP/.leA TE' '': JUN3f; 19~a' " T .,' •GEORSE lot' RYAN, , ,,.' SECRErAP.Y. OFSTATf ( . .... .~ . ~ . .. '" ,'~ ClQlpOrute ~mllStcao!aln the~lold ~raI!DII••·company,· ,"incorporated • '11mRed'" cr~ .,,,,;;mOlt thereof.) ," • • • •• • • -. • , I , . • •• , ADAJi ' '. HERDMAN. ~' ., IniU8I RugJatered ': ' -~~:=::-::~-------:~~~:o:--~---~~~~--. . . . . Agunt . Rrt;l1IaIns Middle Initlal'. Lastname '~.' . • : 6327~Dntl AVONDALE AVENy!' Sffftfll,. ' -. 0. 3.. Purpose Su/re;f: , Numb,r" '," ". '. 'iHlSAt:O • -IL or P~~IS fOiwhIcht"..Colporation IS: ~ganli8d: 6063'\ , CQO)(" .s•. . . '. '::.' :: .: " " (I' "Ot $U"fd&ft1I1~cetci cCI\!et 1hla p~lnt. ~dd el\t.o. mOfuhests of t",ls size;) "" " 'to '5:b:CACE lNANy.· 01l.CA.\"1Z.[" UwM 'ACr OK AC:TlvIn unD£I' ';rHE " FOil mltell cORl'or.AiIO~S·HAl' BE' '. ILLINOIS BUSIN&SSCORl'ORATID~.AC'.t·Ol· 1983,' AS.AHE.··..DED.· ' .. : . Paragraph 1: AuthOtbed Shares. Issued Shares and ~darallon Aceei',ed 4. . P.,VaSU8' Clasa " ca~al: parS~e . S NPV .: .' . , NU/7d)efoiShares " , A\llhor(zed ' l"eoo. . ,Num\lur . ", 0' ShBnl5 . ,'. '. Canslde;~lIon to be Propos,)d tobe Jssuea, ReceIved Therefor" JOO $ lOO~OO' I " J\,l~ (ever) 30 1096 SECRETARY. 02 S1AU tlESlSLL£LL . . ,. .' , . .• 98575993 hg& 3 Dr 5 I • S. OP710NAL: .(a) NumliBr 0' d1f8~OIl consiituUng Ut, Inillal boarel of d1reclolS cf theCOlporation: ONE· • (b) Namesand ad~u of tho p8I8Ol'lS who at810 88"" l1$ dlr~atS unUf the fflIt annual mslt~ng ot ,. . $hatetlolders orUl\iJ lhell successors alB OlDr:ted and quanrll:·· . N!Urie ... :I ; . : .. ,'. . . RlJslderltiAf Aduress· c~ stBle, ZIP • "'l ,: l •• '." ~ . f ~ DP110NAL' . (a) It Is 8$1IMated Unll Ut8 valu. 01 as. p-c,psrty to be o'MH:d by U1a· corpomUOl1 forUla foRowlng year wtl8r.ver IGcaIBd wUl blr. _ .I' . .. s... · _ lb) It Is 8$!IM8bId 1hat Ifte valu, 01the plDpel1yto!leloeatl:cf 'I/llftl" .. •·ltieStale of IIUtlols ckuing lbe fDl!o'.v.ng year \AIlII be:. ... ... .. s ---~-------- (C) IllS estlmBttd that Ihe gro9S amount of bwdnasS 111111 will tie transacted II)' tMCOrpGra1l1lll duMathe '01l0wbl9 year will tie: $ IdJ ilIa estImatld that the grossBtnDllnl Clf bUsln,ss lilt wlU be . . liansacted from pJactsof busineS$intlle SlatDofillinois cWrln~ : .Ih8follo\Vlngyear wilt br. : . . 7. OPTIONAl.· OTHER PROVISIONS • ... ..• .. .. --.;. - S ... .. . .. . . .. . .. to be included in the Articles of IneOlPOt8IJDn. iI.g.,lIuU1oi'izing pre.mptivlr tights, de~9 CUmulabll8 vOllng. regulating 'nramDt affaIrs; YDling maJcrl~qulrenJtl1ts. 'along a duralicm oltlerIhall pGrpelua~ ete, . . Aaach a sepanatll $heet 01 UliS ike for any olhtn: plOvisiDn . NAME(S)" ADDRESS(~lOP INCORPORATOR(B), 8. The unClers:gned ll1l:olJlGratorIS) hertt~ declare's). under penalfleS Articles of rn:orpofBtion .... tnilL. . . Datl'l ot perluzy.lhet t.'1S s~tements madB InIheforegoIng .. . iUME .30• 19-!.!L .: . . . . ..... S'gnallUeand Nami • . '. .... .', 1· IUU:OU· CORPOMTl03 SERlIICE: CO}IlM'T , -Sl~m.ttl'.·· . ' . . ~ . ~1Nf*rr~ 2 .i· ~ .. nature Ci1 anT L. .: __ . .~.;;;;"-=-. .. BRAnE.~. . V.P. . . -. . . .. . 1. Address 700 S; SECOND STRUr .SIt••, . . sPRINGFIELD .. ILLINOIS CitylToWIJ . . StaIB' 2• . SANE· .....:;~::;- 62704 ..... ZlpCDdB _ 5tJeeI. .. StOlrll ZipCDdB ~P1~.~ 3.~ ~n·J Slg"a'Uf, ... . . . ~ ~ . TIA M. BAUCHb. ASST. SIC. . (Typs or PIin' NBme) . . CftylTol'ln Stare Zip Code (SlgnaaurDlJ mus' be i... eucte r~1i tin original ~menl Carton copy• .,holacopyor rubb" sUlInP signalufDsmay onlybct . oA. u=ed On contormed ClO,Ies.J . ... . . '. . .. . ~JOTE: If a cgrporatlo'1 alit& as Incorporator. then31JI8 DI rhecorporation and thostale or Iilco,pornlion shall1m shown end the .lC~..uon shalf be by its prealcfsnt or vice presldanl and\'ttrifl.d by him. and allestr.l by lIS.,cr"rary at asslslant s~relarv. . FEESCHEOULE . . • The itldlBI ftBnctUslt IIa is assessed Ilthft rate of 15/100 of 1 perce,,' (51.50 par $1.0eO) on tt19 pald·ln capital representedIn this SlDtD. witha minImum or525 . • The fdlngfell Is $15. . • The minimum tataillfu8 (franch!se taM• filing f~e) 1$ 5100­ (Applies Vlhenthlt ConsJdg.aUan to be Rece-ved as set fonhIn hem 4 doss not alCceed S16,6(7) • The De~artmentot Bu~es$ SelV~~ in Springlleld wUl prow;fi'; tWIJata"ce In calculating the total fees if necessary. IJIlnoJs S8l:retaf)/ of 5latEt SJl'I"~eld. 11. 62755 . Department Of Business Sewlcea TeleFhone f211) 782·9522 0'782-9523 C·1e2.19 09lJ:)IH::>-Wd'i1 : I, Form PFR-61 Rlnl:dYjicSal:tde3b'yOSan "x?:;" 0 0 I. 2. Q6f7\~S l \\Q~'\) "Y ~ PROFESSIONAL,FUND RAISER REGISTRATION STATEMENT For Fiscal Year July 1, ;)()/() Through June 3D, LISA MADIGAN ATTORNEY GENERAL /ZtJ/1 A NEW REGISTRATION 1XI RE-REGISTRATJON 0 CHANGE 0 ADDITION AS OF I , INDIVIDUAL 0 PARTNERSHIP or 121 CORPORATION Attach: Partnership Agreement or Articles of Incorporation PFR NUMBER NAME of REGISTRANT 02­ 02-000,741 Safety Publications, Inc. ADDRESS 1360 Landmeier Road (224 PHONE NUMBER • 1900 . ) 366 CITY. STATE, ZIP CODE Elk Grove,.IL60007 FEDERAL 10 NUMBER 36-4241905 TJTL~ f!EtiN~ NAME OF CH1EF MANAGEMENT PERSON(SLifddtJ1 (Attach Schedules as needed) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _TITLE. J. _ NAME & ADDRESS OF ILLINOIS REGISTERED A'GENT: (Address must be a street address for service) 4. Name: 5. 1IIJw@l2tJ~ . Address: g~ II. JJ~Afm,.j . /}RiJ.4GTOi'J H€/6#T5 I L &,tJ£l:!J~ LIST ALL PRINCIPAL PARTIES, OFFICERS, DIRECTORS. EXECUTIVE PERSONNEL, AND OWNERS OF TEN PERCENT OR MORE OF THE CAPITAL STOCK (ATTAC" SCHEDULE as needed INDICATING NAME, STREET ADDRESS, TITLE, % OF INTEREST for each person listed). Title Name Please refer to LIST OF OFFICERS AND DIRECTORS and LlST OF SHAREHOLDERS Name Address Address o Officer 0 Director DOwner _._ _% 0 Name Executive Employee Title o Officer 0 Director 'OOwner _ _% 0 Executive Employee Name Title Address Address o Of ricer 0 Director·O o Owner - _ % Title Executive Employee IJ Officer 0 Director o Owner _ _% 0 Executive Employee EXHIBIT I ~ ­ rn D 6. WERE ALL PROFESSIONAL SOLICITORS FURNISHED A 1099 OR W2 LAST YEAR? If NO, EXPLAIN IN DETAIL. COMPLETE AND ATTACH FORM PS-Ol. 7. HAVE ANY OF THE FIRM'S PRINCIPAL PARTIES, EMPLOYEES, OFFICERS, DIRECTORS, EXECUTIVE PERSONNEL, OWNERS OF TEN PERCENT OR MORE OF THE CAPITAL STOCK OR THEIR RELA TrONS EVER BEEN CONVICTED OF A MISDEMEANOR INVOLVING THE MISAPPROPRIATION OR MISUSE OF MONEY OF 0 Yes 51 No ANOTHER, OR OF ANY FELONY? Yes No IF "YES", INDICATE WHO WAS CONVICTED. THE NATURE of OFFENSE, DATE of CONVICTION. and NAME and ADDRESS of COURT. 8. LIST THE INTEREST OF ALL PRINCIPAL PARTIES, OFFICERS, DIRECTORS, EXECUTIVE PERSONNEL, OWNERS OF REGISTRANT AND THEIR FAMILY MEMBERS IN ANY OTHER FIRMS PROVIDING GOODS OR SERVICES USED IN FUND RAISING. NATUREOF BUSINESS 9. NAME OF PARTY % INTEREST NAME & STREET ADDRESS OF BUSINESS' COMPLETE & ATTACH FORM PFR-06 FOR ALL CHARITIES HAVING CONTRACTS WITH PFR. ATTACH THE FOLLOWING AS A PART OF REGISTRATION A!'JD INDICATE BY AN "X" THOSE ATTACHED: Partnershi p Agreement or Articles of Incorporation of Professional Fund Raiser (PFR): o Certificate of Authority to Transact Business in Illinois(Out of state PFRs only). o Form CS-6 (PFR Bond). o Form PFR·06 (List of Charities for whom fund Raising services are to be provided.), o Form PS-OI (For all Solicitors employed by PFR). o List all business locations, other than above, used for fundraising. (attach a schedule indicating street address, city, state). o All schedules and explanations for any of the above questions. o Copies of all Fund Raising Contracts with Charities including Amendments, and Extensions. o NOTE: VERIFICATION MUST BE BY TIlE 'CORPORATE PRESIDENT, A.GENERAL PARTNER OR THE SOLE PROPRIETOR. STATE OF COUNTY OF_ _....=::....=-<.-=­ ----.L) -- SS AFFIDAVIT I, ~~\~...J b L\ JI ~ under penalty of perjury and being sworn on oath state that I am (strike out) the CORPORATE PRES IDENT. GENERAL PARTNE or the SOLE PROPRI ETOR of the registrant professional fund raiser. I have read the forgoing registration statement and personally know the contents thereof to be true, and each and every attachment, attached form and attached schedule, the content thereof as stated by me and filed by me with the Illinois Attorney General for the purpose of having the people of the State of Illinois rely thereupon. I hereby further authorize and agree to submit myself and the registrant hereby to the jurisdiction of the State of Illinois. Subscribed and sworn to befors,me. This 2. f ~ t. day of -Jt.{ '" ~ .... :~~& ,~ ~(j(O Safety Publications, Inc. FEIN: Attachment referenced in question 5 LIST OF OFFICERS AND DIRECTORS Adam Herdman, President Art Olivera, Vice President All Officersand Directors can be reached at: 1360Landmeier Road Elk Grove, JL 60007 36-4241905 Safety Publications, Inc. FEIN: Attachment referenced in question LIST OF SHAREHOLDERS Adam Herdman, 50%% Missing 507 Regan Drive It ,Art Olevera, 50%% Missing 1560 Cumberland Parkway It 36-4241905 Forml>FR-Ol ." ... Indicate by'ah PROFESSIONAL FUND RAISER . :. ' . Revised 3/05' LISA MADIGAN ATIORNEY.GENERAL REGISTRATION STATEMENT· F;"~Y',, ;uly l,JJ- T"'OU"lUO;3~,.Ll. . For "~i; . . ".. J $/f!-,-;:..;.. ~ " . ..' . .1. 0 A NEW REGISTRATION IXI. RE-REGISTRATION 0 CHANGED" ADDITIoN AS of' i" I" ..•.:.... ' , ~ . 2. INDIVIDUAL 0 PARTNERSHIPor I2J CORPORATION Attach: PartnershipAgreement or Articles of Incorporation a ·.1 ..' ·••··•· NAME of REGIStRANt .. ";' -,,: PFR NuMBER-. 02· .' 02-000,741 -, Safety PUblications, Inc; '. AttOr~~Y G~ner~k, . ADDRESS 1360 Landmeler'Road PHONE NUMBER' (224 '\ 366:' - 1900 . charital;lle Trust .... FEDERALID NUMBER 36-4241905 . ' CITY. STATE, ZIP CODE Elk Grove, IL 60007 . Jf;J;y, .' '/I.el!AJ1f;t.. NAME of CHIEF MANAGEMENT PERSON(S) . (Attach Schedules as needed) . ___--'-'---'-..............:.. 3. --:.. ._.TITLE.;.,..: ._._ ......_ _• :. NAM:E. & ADDRESS OF ILLINOIS REGISTERED AGENT: (Address mustbe a street address for service) .:' 4. "NattieJ\~\' ··OL...\\j'(:.~' 5. ··.~ddress:t~(:'ci; C~N~~~~P;: M: ~4c'-.~A.Ji.. ~~G.?"~ . .LIST'AtL pRINCIPAL PARTIES, OFFICERS, DlRECTOIts. EXEcm;"~'~~RS6NNE~,AND OWNERS OF'TEN .' '.' PERCENT OR. MORE OF THE CAPITAL StOCK (ATTACH.SCHEDuLE as 'needed INDICATING NAME, STREET.: ADDRESS, TI'tLE,%OF INTEREST for each person listed}." .' . ' . .. . . . .' Name. Title See attachment ."List of Officers and Directors" and "list of Shareholders" Name Address' Address o Officer 0 Director 0 o Owner _ _% Name Executive Employee Title Address Title.: .' " .' o Officer 0 Director DOwner -_% 0 Executive Employee Name Title Address o Of ricer 0 Director 0 o Owner _ _% Executive Employee o Officer 0 DOwner Director % IJ Executive Employee -- EXHIBIT I .­ C. [] Yes 0 No 6. WERE ALL PROFESSIONAL SOLICITORS FURNISHED A 1099 OR W2 LAST YEAR? If NO, EXPLAIN IN DETAIL. COMPLETE AND ATTACH FORM PS·OI. 7. tiA VE ANY OF THE FIRM'S PRINCIPAL PARTlES,EMPLOYEES, OFFICERS, DIRECTORS, EXECUTIVE PERSONNEL, OWNERS OF TEN PERCENT OR MoRE OF THE CAPITAL STOCK OR THEIR RELATIONS EVER BEEN CONVICTED OF A MISDEMEANOR INYOLVING THE MISAPPROPRIATION OR MISUSE OF MONEY OF ·0 Yes. Ij No . . . ANOTHER; OR OF ANY FELONY? "'ii'"YES", INDICATE WHO WAS CONVICTED. THE NATURE ~fOFFENSE, DATE of CONvicTION, a~d NAME and . ,ADDRESS of COURT. . . . . . usr THE INTEREST OFALL PRINCIPALPAiTlES,OFFICERS,DIRECioRS, EXECUTIVE PERSONNEL, OWNERS s. OF REGISTRANT AND THEIR FAMILY MEMBERS IN ANY OTHER FIRMS PROVIDING GOODS OR SERVICES' USED IN FUND RAISING. ' . " NATURE OF BUSINESS NAMEOF PARTY % INTEREST NAME & STREE! ADDiUlsS OF BUSINESS __________~~.Al...··__~_"____ 9. ...:._ _ COMPLETE & ATTACH FORM ~FR-06 FOR ALL CHARITIES HAVING CONTRACTSWITH PFlt . REGISTRAT~ON THOSEATTACiJ::£~: ATTACH iHE FOLLOWING AS A PART OF AND INDICATE BYAN "X" Partnership Agreement or Articles of Incorporation of Professional Fund Raiser (PFR). Certificate ofAuthority to Transact Business in IJlinois(Out of state PFRsortly). Fohn CS"6 (p"F'R Bond);' . . .. '. Form PFR-06 (List of Charities for whom fund Raising Services are to be provided.). " .' .. ti Form PS-OI (For all Solicitors employed by PFR). . b . List all business locations, other than above, used for fundraising. (attach a schedule indicating street address, city, state). o Ali schedules and explanations for any of the above questions. . o Copies of all Fund Raising Contracts with Charities including Amendments, and Extensions.. o o o o NOTE; VERIFICATION MUST BE BY TlJE CORl'ORATE PREsiDENT, A GENERAL PARTNER OR THE SOLE PROPJUETOR. :r STATE OF \<.. . ~ ~\ U~,~ 'L«""\\ COUNTY OF I, 1...(, ,-.Jet C; . Cu c'l )__ SS AFFIDAVIT . . -. under penalty of perjury a~d beirigsworn on oath state that I am (strike OUI) the CORPORATE PRESIDENT, (GENERAL PAR' or the SOLE PROPRIETOR of the registrant professional fund raiser. r have read the forgoing registration statement and personally know the contents thereof to be true, and each and every· attachment, attached form and attached schedule, the content thereof as stated by me and filed by me with the Illinois Attorney General for the purpose of having the people of the State of Illinois rely thereupon. I hereby further authorize and agree to submit myself and the registrant hereby to the jurisdiction of the State of Illinois. (/I. "oFFiciAL SErv· JOANNE)(. CANO Notary Public. State oUll/nou MyCom I 0 ~~~!!Uj~!fi~OO~~es of this form and all schedules needed to complete your registration. Send completed registration to: Attorney General's Office, Charitable Trust Bureau, 100 West Randolph, l lth Floor, Chicago, Illinois 60601 .. , . , .. Safety PUblications, Inc. FEiN: " Attachm,entroferenced in c11l8stion 5, 36-4241905 . . Li~t of Offi~ers'andDir~ctors ", t Ad~~ Herdman, Presldant ' 507 Regan Drive East Dundee, IL 601,18. ........ olivera; Presldent'< ,Art V'ice ,1560 Cumberland Parkway: Algonquin~ IL 60102 " ' . .v ', ." ,', .... :. -v. ,: .• . . .' ,,! ' ... ;. . ~ " . ',', ~ '.' ..... ' ~.'. " ..... ", ...... -. ::. i .'. ,',. " . .' ",:: :.' ..'.- ~ :.....;.' ..:.; " '. ;< ..... : '-"" " " . .. ..... : .. ; :.::.:: .' .;" ,", :,:'" " <,-,,: : ..... ~. . :. .. ..:,- . . ,.,' ",' . .: .. , ' . ~ ..... . -,.: : " \," '. ." . C' " ,; ........ ":»:; .... : ", ,', . :, ..... ",:" .', ',',' . Safety Publlcatlons, Inc; 36-4241905 FEIN: , ., Attac~me;,treferenced in question 5' List ofSharefJolders " ' ...... ..::' . '.' A~~mHerdman,5b%%:' , , .~ ........ .. 507 Regan :.; . 'Drive IL,' ,' . . i.··· ;-, .. Art Olever'a.50%%' Missing , ': ' , '. 1560 Cumberland PeirkwaYIL. ' ,"", , : '" Missing~ ' ~ .. " -; .. . ::.' .... ' " ..... " . , .... ' ... ~ .. . '" .. . ", ". " ':'. i .:. : . , , " '", .. ~ ..: .' ',;. ",.:;" ", .. .< : . ~ , " ' . '} ::' : I., .\. ',.' \.! .,'.. ~ ',' ",. " j• • ;" .' ' .,'. ;.' .': ,,' . .>.'~. ',' .\ :',' ',' " .'.":,,­ ',',:,', ',i .... " ' -, , ".': -',.~ " -: " '. "., ":' " '. ,: :.•.. ',,:,. ,', ::,.'" -, ,.~'" ....; ,', ,';' .. .... :-.'... ; .. -, ,.' . . ":', , .; ":'.. : : ."" .' .-,: 'J,' LISA MADIGAN PROFESSIONAL FUND RAISER REGISTRATION STATEMENT Form PFR-Ol Revised 3/05 For Fiscal Year July 1,';vI..{ Through June 30, ATTORNEY GENERAL r1£d Indicate by an "X" 1. 0 ANEWREGISTRATIONIXl RE-REGISTRATIONO CHANGED ADDITIONASOF / / 2. 0 INDIVIDUAL 0 PARTNERSHIP or 12 CORPORATION Attach: Partnership Agreement or Articles of Incorporation NAME of REGISTRANT PFR NUMBER 02­ 02-000,741 Safety Publications, Inc. ADDRESS 1360 Landmeler Road PHONE NUMBER CITY. STATE, ZIP CODE Elk Grove, IL 60007 FEDERAL ID NUMBER 36-4241905 (224 ) 366 . 1900 NAME OF CHIEF MANAGEMENT PERSON(S.... ) -'A....:.:_'l__ Zr tJ_;;....;.~..:..e.cM....;.TITLE............£.-._ (Attach-Schedules as needed) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ TITLE._ _---'---'_ 3. NAME & ADDRESS P~}LLINOIS REGISTERED AGENT: (Address must be a street address for service) 4. Name: 5. ;JIA I Address:...,-',"'--- _ LIST ALL PRINCIPAL PARTIES, OFFICERS, DlRECfORS. EXECUTIVE PERSONNEL, AND OWNERS OF TEN PERCENT OR MORE OF THE CAPITAL STOCK (ATTACH SCHEDULE as needed INDICATING NAME, STREET ADDRESS, TITLE, % OF INTEREST for each person listed). Name Title See attachment "List of Officers and Directors" and "List of Shareholders" Name Address Address o Officer 0 Director D o Owner_% Name Executive Employee Title Director DOwner _ _°10 o Officer D Director 0 o Owner_% Executive Employee Title Name Address Address o Of'ricer 0 Title 0 Executive Employee D Omcer D Director D Executive Employee D EXHIBIT D I ------ Owner %REC ll!r __ ....._ j .' I'" ~ '.\~,f ._:...... \1 .:,.;;/f''I) E!'" . .t,I,.IL,4 1111­ t.: \.·'1 , ~ '. Anor.ij\~r.: v· C.:::.i': :::;:·.;/.\L CH/-\Hn l-\.bU:: fHUST · WERE ALL PROFESSIONAL SOLICITORS FURNIS~ED A 1099 OR W2 LAST YEAR? If NO, EXPLAIN IN DETAIL. COMPLETE AND ATTACH FORM PS-Ol. 7. III Yes 0 No HAVE ANY OF THE FIRM'S PRINCIPAL PARTIES, EM PLOYEES, OFFICERS, DIRECTORS, EXECUTIVE PERSONNEL, OWNERS OF TEN PERCENT OR MORE OF THE CAPITAL STOCK OR THEIR RELATIONS EVER BEEN CONVICTED OF A MISDEMEANOR INVOLVING THE M'ISAPPROPRIATION OR MISUSE OF MONEY OF ANOTHER, OR OF ANY FELONY? 0 Yes Ga No IF "Y ES·, INDICATE WHO WAS CONVICTED. THE NATURE of OFFENSE, DATE of CONVICTION, and NAME and ADDRESS of COURT. LIST THE INTEREST OF ALL PR(NCIPA L PARTIES, OFFICERS, DIRECTO RS, EXECUTIV E PERSON NEL, OW N ERS OF REGISTRA NT AND THEI.R FAM ILY MEM BERS IN ANY OTH ER FIRMS PROVIDING GOODS OR SERVICES USED IN FUND RAISING. . 8, NATURE OFBUSINESS 9. NAME OFPARTY % INTEREST NAME &. STREET ADDRESS OF BllSINESS COMPLETE & ATTACH FORM PFR-06 FOR ALL CHARlTlES HAVING CONTRACTS WITH PFR. ATTACH THE FOLLOWING AS A PART OF REGISTRATION AND'INDICATE BY AN "X" THOSE ATTACHED: Partnership Agreement or Articles of Incorporation of Professional Fund Raiser (PFR). Certificate of Authorityto Transact Business in lIlinois(Outof state PFRs only). Form CS-6 (PFR Bond). o Form PFR-06 (List of Charities for whom fund Raising servicesare to be provided.), o . Form PS-O I (For all Solicitorsemployed by PFR). lJ List all business locations, other than above, used for fundraising. (attach a schedule indicating street address, city, state). o All schedules and explanationsfor any of the above questions. o Copies of all Fund Raising Contracts with Charities including Amendments, and Extensions. o o o NOTE: VER1F1CAT10N MUST BE BY TlJECORPORATE PRES1DENT. A GENERALPARTNER OR THESOLE PROPRIETOR. STATE OF COUNTY OF _f\~ c... ~~ ~ ).. SS AFFIDAVIT ~ "-.., I. '-l 'L..f-f\ under penalty of perjury and being sworn on oath state that I am (strike out) the CQRPO RA TE PRES IDENT. a GENERA L PARTNER or the SOLE PROPRI ETO R of the registrant professional fund raiser. J have read the forgoing registration statement and personally know the contents thereof to be true. and each and every attachment. attached form and attached schedule, the content thereof as stated by me and filed by me with the Illinois Attorney General for the purpose of having the people of the State oflllinois rely thereupon. J hereby further authorize and agree to submit myself and the registrant hereby to the jurisdiction of the State of Illinois. Subscribed and sworn to before me. • 8:rlt dav of A 1)11 I 1)lis. ,"'.2-0/3 ;4.r~ f 1(j'".. .'vue, V;'r-c.P .. IJr~5ic.,il1 I ' UIf;/ . - (Print Name & Title) I , 1/ .......-~1\1fmrim~:v...e'61't!i'es of this form and all schedules needed to complete your registration. Send completed registration to: Attorney General's Office, Charitable Trust Bureau,! 00 West Randolph, II th Floor, Chicago, Illinois 60601 .' '. Safety Publleatlons, Inc. FEIN: Attachment referenced in question 5 List of Shareholders Adam Herdman. 50%% Missing 507 Regan Drive IL Art Olevera, 50%% Missing . 1560 Cumberland Parkway IL :'. '.; .... ,. RECEf\/F:D MAY 2 ~ 2014 ATTOHNEY GENERAL CHARITABLE TRUST 36·4241905 Safety Publications, Inc. AH~chment referenced in question 5 List of Officers and Directors Adam Herdman, President 507 Regan Drive East Dundee, IL 6011 B Art Olivera, Vice President 1560 Cumberland Parkway Algonquin, IL 60102 FEIN: 36-4241905 Safety ~ublications, Inc. List of Phone Room and Business LocationS 1360 Landmeier Road Elk Grove, IL 60007 224-366-1900 APR 3 J 7n14 ATTOHJ'\!-'y <.: ,.7'• • • ; r:\.M.lc;rr .\"'.\. 'i ./;' .• \'~ , lJ\',1 ·bo~ ~LJSA MADIGAN PROFESSIONAL FUND RAISER REGISTRATION STATEMENT Form PFR-OI Revised 3/05 For Fiscal Year July ATTORNKY GENERAL • 1,.iL Through June 30,.4­ Indicate by an "X" I. D ANEWREGISTRATIONIXI RE-REGISTRAT10ND CHANGED ADDITIONASOF / / 2. 0 INDIVIDUAL 0 PARTNERSHIP or [2J CORPORATION Attach: Partnership Agreement or Articles of Incorporation Safety Publications, Inc. PFR NUMBER 02· 02-000,741 ADDRESS 1360 Landmeier Road PHONENUMBER ·1900 (224 ) 366 CITY. STATE, ZIP CODE Elk Grove, IL 60007 FEDERAL ID NUMBER 36·4241905 NAME of REGISTRANT 3. 4. NAME OF CHIEF MANAGEMENT PERSON(S)L.;A;..:;rt:.;. .;:O::;.:.I'-'C1v-=.e::.;:ra=--TITLE:....;V...;..P (Attach Schedules as needed) _ _ _ _ _ _ _ _ _ _ _ _ _ _-'-_TITLE. ,....-_ NAME & ADDRESS OF ILLINOIS REGISTERED AGENT: (Address must be a street address for service) Name: ;(gn-tu,$2- OLU!fd I 5. _ . Address; , ~34rD La.MW\e.! ev~ f(k b~~Vi. IL LIST ALL PRINCIPAL PARTIES, OFFICERS,DIRECTORS. EXECUTIVE PERSONNEL, AND OWNERS OF.TEN. PERCENT OR MORE OF THE CAPITAL STOCK (ATIACH SCHEDULE as needed INDICATING NAME, STREET ADDRESS. TITLE, % OF INTEREST for each person listed). Title Name See attachment "List of Officers and Directors" and "List of Shareholders" Name Address Address o o o Officer 0 Director 0 Executive Employee o Owner _ _% Name 0 Executive Employee Name Title Title Address Address o Ofricer D Officer 0 Director Owner _ _% Title o Officer 0 Director D o Owner_ _% Director 0 Executive Employee o Owner_ _% RECE ' d VED ,JUl (.1 270 /JptU Attorpe General CharIta Ie Trust b Executive Employee EXHIBIT I I!l [ 14000J " .. , rn Yes 0 No 6. WERE ALL PROFESSIONA L SOLICITORS FURNISHED A 1099 OR WHAST YEA R? If NO, EXPLAIN IN DETAIL. COMPLETE AND ATTACH FORMPS·OI. .i 7. HAV E ANY OF THE FIRM'S PRINCIPAL PARTIES, EM PLOYEES, OFFICERS, DIRECTORS, EXECUTIVE PERSONN EL, OWNERS OF TEN PERCENT OR MORE OF THE CAPITAL STOCK OR THEIR RELATIONS EVER BEEN CONVICTED OF A MISDEMEANOR INVOLVING THE MISAPPROPRIATION OR MISUSE OF MONEY OF ANOTHER, OR OF ANY FELONY? 0 Yes No ua IF "YES", IN DICATE WHO WAS CONVICTED. THE NATURE of OFFENSE, DATE of CONVICTION, and NAME and ADDRESS of COURT. 8. LIST THE INTEREST OF ALL PRINCIPAL PARTIES, OFFICERS, DIRECTORS, EXECUTIVE PERSONNEL, OWNERS OF REGISTRANT AND THEIR FAMILY MEMBERS IN ANY OTHER FIRMS PROVIDING GOODS OR SERVICES USED IN FUND RAISING. ' 'UREO,"U'' ' , 9. ","EOFPA~_{1 .A_._IN_T_ER_E_ST_, NAME &. STREET ADDRESS OF BUSINESS _ COMPLETE & ATTACH FORM PFR-06 FOR ALL CHARITIES HAVING CONTRACTS WITH PFR. ATTACH THE FOLLOWING AS A PART OF REGISTRATION AND INDICATE BY AN "X" THOSE ATTACHED: Partnership Agreement or Articles of Incorporation of Professional Fund Raiser (PFR). Certificate of Authority to Transact Business in .IIIinois(Out of state PFRs only). Form CS-6 (PFR Bond). o Form PFR-06 (List of Charities for whom fund Raising services are to be provided.), o Form PS-OJ (For all Solicitors employed by PFR). o List aJI business locations, other than above, used for fundralsing, (attach a schedule indicating street address, city, state). o All schedules and explanations for any ofthe above questions. o Copies of all Fund Raising Contracts with Charities including Amendments, and Extensions. o o o . NOTE: VERIFICATION MUST BE BY TIlE CORPORATE PRESIDENT, A GENERAL PARTNER OR THE SOLE PROPRIETOR. STATE OF I.LL\ ('--jO\ S ) -- SS AFFIDA VJT I have read the forgoing registration statement and personally know the contents thereof to be true, and each and every attachment, attached form and attached schedule, the content thereof as stated by me and filed by me with the Illinois Attorney General for the purpose of having the people of the State of Illinois rely thereupon, I hereby further authorize and agree to submit myself and the registrant hereby to the jurisdiction of the State of Illinois. /.2 l\ ~, \(Signature) O\...,J'Lf:-?\ (Print Name & Title) " Safety Publications, Inc. Attachment referenced In question 5 List of Officers and Directors Adam Herdman, President 507 Regan Drive East Dundee, IL 60118 Art Olivera. Vice President 1560 Cumberland Parkway Algonquin. IL 60102 FEIN: 36-4241905 .. '. . Safety Publications, Inc. . Attachment referenced in question 5 List of Shareholders Adam Herdman, 50%% Missing. . 501 Regan Drive IL Art Olevera, 50%% Missing ­ 1560 Cumberland Parkway IL FEIN: 36-4241905 " " Safety Publications, Inc. . List of Phone Room Locations \~~D L~{\\)A~\~~ ~\ \=-_'-'-' ~t-cJ~ \j\,-~~ ~L ~(::)C)()l \fJ\ \ L ~ fr\..J \.<::"~1- . M ~L ~D\4~ PROFESSIONAL FUND RAISER Form I'FR-02 Re"ised 310S ANNUAL FINA~CIAL REPORT rnis MUST BE FILED BY _A..;...p_ril_3_0_,......>=~'-I-=-()~/_' r:: ~ \! :~' rD :\ . r_u· .. REC Attomey Gr:m;ic,;l'~ GilleS _ FIl.E A'F: Office of the Allorney General, Charitable Trust Bureau. 100 West Randolph Streel,l!1h Floor, Chicago, IIIIIIoi5 60601 INSTRUCTIONS (FURTlIF.R INSTRUCTIONS AT F.ND OF FORM) PLEASE TYPE OR PRINT IN BLACK INK Mnke checks flHYlible 10 the 'Illinni~ f;hHrlty Bureau Fund, . MAY ~1 i LOil G~:NERAL A. RESPOND TO ALI. ITEMS ON TillS FORM. . . It CHAI':GE~ OF OR ADIlITIONS TO THE INFORMATION IN nns STATEMENTMUST 1'110 SUBMITTED IN THIS FORMAT. Char~10foh~ C. ANNUAl. KEPOln (CHECK ONE): PREPARE!) ON ACCRUAL BASIS 0 PREPARED ON A CASH BASIS OR PREPARED BY ANOTHER MF.TIIOD [] [j If \'Rf.PARfll BY ANOTmR MHHOD EXPLAIN' I.E(jAI. NAM; Safety Publications, Inc. REGISTF.RFI) FOR FISCAL YEAR M/IIL !lfJllRESS 1360 Landmeier Road ENDED JIJNI. 30. CiTY Elk Grove I'FRH01- 02-000,741 STAn,. ZIP CODE 60007 2P1/ A$ FEDERAl. 10 NIIMBER 36-4241905 )'HONE NUMBER 224-366-1900 IU;rORl' IS FOR PF.RIOO BEGINNING .JANUARY I, ).fll() AND ENDING December 31, CHARITY COli CHARITII:S FOK WIIOM FUNDS WERE RAISED dlo/~ (A) (ll) ;:IAOUNT TO CHARITY SOLICITATION EXPENSES (D) (e:) TOT III. IIMOllN]' % ( file) RAISED TOTAL FOU AU, CH,\HITAnu: FUNDRAISING RY PFIII <1 TOTA:' SUMIIER Of UIARIT!ES BF.INCI REPORTED: ~llIe: VeriClcAllon "'"" he by the Corporate Presidenl, • GeneralParmeror theSole Proprietor. ST/I '1'1, 01' --==-::;:--=::..:.-.:........::....=.-'-""'-----­ } -s. A 1'1'II) A V IT LOUN'fY OF I. ~1'7'rff,e under penalty of perjury and being sworn on oath Slate that ) arn (circle one) the corporate rcgrcrcd professional fundraiser, NAme "f PFR 'UJ:1J~l. have read this annual report including all "nachnlenls and personally kunw li,e cements thereof 10 he true, and such is staled herein and filed with the Illinois Anomey General for the purpose IIf having the people of the StQle or III illois ,,-I)' thereupon, t bcrchy Iurther authorize and agree to submit myself and the reeistrant hcr\by to Ihe jurisdicuon of the State of JJJinois. Suhscnbed and sworn la before me Ihis.....e.g=.l5~ r H _ IV/A ,Y EXHIBIT I F ""II. 1'«U~1 lurm I'FI(-ll:! 3/115 TillS MUST BE FILED BY _A....:..p_ri_'3_0...:...._01--=----/}...:...'/I_· . LISA MADICAN PROFESSIONAL FUND RAISER ANNUAL FINANCIAL REPORT Filing Fcc $25 I(C\·j,L'U ATfORNEY GENERAL _ . I'lLI' AT: (Ilficc ofthe Attorney General. Charitable Trust Bureau. 100 West Randolph Street, 11th Floor. Chicago, Illinois 60601 (a:~~;R,\ L INSTRIICTIONS (FlIIHIl f:R INSTIUlCTlONS AT END OF FORM) PLEASE TYPE OR P(HNT IN BLACK INK "lake checks paya hle to the lliinois Charity Bureau Fund.. . 1\. RI,;SI'OND TO ALI. rmMS ON .' . rtus FORM,' II. CIIANCJES OF OR ADDITIONS TO lllE INFORMATION IN lHIS STAlEMEl''T MUST BE SUBMrm··]) IN TI,nS FORMAT. ('. ANNUAl. REPORT (CIIECK ONE):. ', '. . . ',' " . " . , , I'RI-:i'I\RID ONACCRlJAI. BASIS D PREPARED ON A CASH BASIS ~. OR PREPARED BY ANOn IER MEll10DD - - IF I'RFI'ARFD BY ANRT PREPARf:D ON ACCRU IU- BASIS 0 l'Ra'AREDClNA CASHSASJS 01 ORPREP~BYANr th 1;01~1prietDr of the reglslered proftuianal fundralser. rt Ll.bl,·~ lLJ·n 'f ..... . . , 2014 ttomey General Ult1811ita1lJJec'atpmi1"e tName ofPf'~1 . SA~e' l\)\S AJI' I !laveread lhi. onnull report Inc;luding all atlRchmenl& and llerso"ally ~"ow the conterltathereof 10 be t ue, Bnd lu~h ;5 slUed herein ond filed with lhe lIIinuis Allomey G~neral for Ihc purpllseor havins the people or thl!Slate pf Illinolsrely thereupon. J here\) further authorize ond agree 10 submil myselfand the reeisllanl h (by to the jUli~"ittion oflhe Slale or IIlinuis. J : Subscribed and sW~V.--4 beforeme Ihis .~. / (jov or _IUL_ V EXHIBIT 2od_. j ·omClAL SEAL" JOANNE K. CANO NDIaryPublic, SlIllIoflllinoia ~ CS!!!OII b 06125120 17 :~. . . " ..., , , For,m PFR·02, ' Revised 6112 PROFESSIONAL FUND RAISER', ANNUAL FINANCIAL REPORT: ' Filing' Fee $25 '. . THIS MUS.f . ' :' ,' " ~1l())~,';', ,,' , BE~ILED BY April 30,' ,;?iJ/6' ' : " ' " REGlS'TERED FORFISCAL YEAR _~eo-~3(), -- ", -, -- CHARlTIES FOR~HO~/t'FUNDS )\5--­ ,FEDERAL IDNUMBER ' 36-4241.905 " " REPORTIS FOR PERIOD BEGINNiNG JANUARY . " , 2c\.$ PrnNoz-02.000, 741 ' , STAlE 21P.a:J::I3!OOO7· , . .. , rw\n...AJ:tiu:ss1360 Landmeier Road' .'. .;-- . lk Grove,,' 'PHONE NUMBER224-366-190m " c\q),AlTOllNEYGENERAL " I..EG4iNAMP$afetv Publications,Inc:' ' ' LISA MADiGAN ' ""~' ,', 86' I"~A~D ," " ENDING December3r; ,,'2-0 CHARITY CO # " WE~ RAISED '., l ' +.. ,", ' (A) , '" ' (8) . TOTAL AMOUNT ,'SOLICITATION: RAISED EXPENSES .. (D) ,(C) AMOUNT TO % (CIA) " 'CHARITY-' TOTAL FOR ALLCuARITABLE FUNDRAISING BY PFR: TOT AL NUMBER OF CHARITIES BEING REPORTED: ' _.....:==----­ _ _ _ _ _ _ _-----' STATEOF 5/1/110/ r /i COUNTY OF ' <...Oa K. f\~\' I, 0 L\Vtz..tApresident,a general partner or the sole V 'RECEIVED /'" NOle: Verification must bebythe Corporate Presldent, a General Partner or theSole Proprietor. MAY 27 20'5 "uorney GeneraI '..:horitable'fmnl } -ss AFFIDAVIT' under penally of perjuryand beingsworn on oath state that I am (circle one) the corporate oprietor of the registered professional fundraiser. ~ Name of PFR ,have read this annual report includingall attachmentsand personally .know the contents thereof to be true, nd such is stated --=rein a~~filed ~i_~:..~I!~~is At~~lTley ~~~e.ral. ~o~_the p~rpyse of having theEeoe1e of the Slate,_ --- 'vHli;~;;, ~:)_=ifrii<;ilv~lI;-l·JiCrebf1trr\ijifil:ur,jiiiTi~ai;'aagreno-si.itiiiii'fi1i yStll'aiiifttll'iijistririi her{liyi01fJ-ejUristlict1;;;lof the State of Illinois. -- , Subscribed and sworn to " ~ ,'i T r ·OFFICIAL SEAL" JOANNE K. CANO NollryPublic, Slife otnUaoil ~ Commls~ §llI!06fHaO\7 EXHIBIT I l (This form replaces CCG-40B, 0040, 0601, 0605, 0629, 0630, 0631, 0632, 0633; CCMC-l.363-6055~ (Rev. 5/24/04) CtCR 0699 6056, CCMC-613, and CCCR-0084, 0093A & B, and CCCR-0606) IN THE CIRCUIT COURT OF COOK COUNTY, ILLINOIS People of the State of Illinois OR City/Village/Municipality of Case No. 83c00288604 Plaintiff I. R. # v Arthur Olivera ---,­ S. I. D. # _ Defendant CERTIFIED STATEMENT OF DISPOSITION/CONVICTION I, DOROTHY BROWN, Clerk of the Circuit Court of Cook County, Illinois, and keeper of the records and the seal thereof, do hereby certify the records of the Circuit Court of Cook County reflect: (*STRIKE ALL INAPPLICABLE STATEMENTS) *1. On " the State's Attorney of Cook Countyllocal prosecutor charging the defendant with the _ filed an (information El/ complaint f.:!I) number offense(s)of *2. On March 18 month of March ,1983 ,1983 , the duly impaneled Cook County Grand Jury for the ,returned an indictment number 83c00288604 charging the above named defendant with the offense(s) of--=-Ar==..so=n=.--=e:..=.tc=--- *3. On April 14 1983 _ ,the above-named defendant, while represented by counsel and fully advised of his/her rights, was arraigned before the Ho~orable Judge Bailey _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _" Judge of the Circuit Court of Cook County, and entered a ,; plea of (not guilty !:lI/guilty I!J). *4. A trial by jury (was I!iI was not 9) waived by the defendant, who was represented by counsel; and defendant was found (not guilty t5l/ guilty ®J). *5. On September 26 before the Honorable Judge Bailey 1983 ,a hearing was held in the above-captioned case ,Judge of the Circuit Court of Cook County; the Order entered by the Court was: defendant guilty of arson and sentenced to a term of 30 months probation. Defendant advised of his right to appeal. On March 26, 1986 defendant's probation was terminated satisfactory. I hereby certify that the foregoing has been entered of record in the above-captioned case. COURT SEAL DATED: September 17 -:J)~?; BM~}-j,..) DOROTHY BROWN, CLERK OFTHE CIRCUIT COURT OF CO , 2015 VETERANSNOW Q & A ,100s. KENNEDY DR. #639, CARPENTERSVILLE,IL 60110 800-837-VETS (8387) OR Visit www.veterans-now.com What is VeteransNow? VETERANSNOW is a non-profit organization 'with tax deductible status,' organized to improve the conditionsfor Veterans returning home from war. Are you a vetera n? No I'm not; I am an official representative calling on behalf of the VeteransNow Association. ) Where are you calling from? ,I'm calling you from our regional businessoffice in Elk Grove Vii/age: 1360 Landmeier Rd, Elk Grove Village, IL 60007 May I have a number to call you back? (800) 837-VETS (8387) What does the money go for? Your contribution is used to help sponsorprojectssuch as -Homeless Veteran Programs -Mental health care & assistancefor disabled vets -POWIMIA Search -Foodbaskets & scholarship funds -Agent Orange assistance program for the bets and their families -Voluntaryservicesin VA medicalcenters -Employment assistance programs -Legislative efforts to maintain veterans' programs What percentage does the VeteransNow Association get? VeteransNow receives16% of allfunds collected. IF ANY QUESTION IS ASKED AND DOES NOT APPEAR HERE GET A SUPERVISOR IMMEDIATELYI EXHIBIT I k VETERANSNOW Q & A 100'S. KENNEDY DR. #639, .' CARPENTERSVILLE,IL 60110 . . . ". .. 800-83 7-VETS (8387) ORVisit www.veterans-now.com Where are you located , I what is the address of the VeteransNow Headquarters? The association's address is: 1835 Broadway, Rockford, IL 61104 ' How do I know that this is legitimate? Prior to writing your check, you'lf receive an official receipt for tax purposes, a thank you letter/brochure from the president of the VeteransNow AssociatIon. You would make your check dIrectly payable to VETERANSNOW. ' Is this tax deductible? YES/it is 100% tax deductible to the furthest extent of the law. 36 - 3420947 What is your federallD number? Are you a professional! paid solicitor? If you mean "Am I paid for the work I do?" YES Can you send me information I literature I letter? NO, I'm sorry I can't it's just too costly but you can get more information off of our website @ www.veterans-now.com. With every confirmed pledge we do send a brochure about' the programs, a receipt for your tax records, and a return envelope for your convenience. I was told not to take fundraising over the phone? There have been some problems with fraud, that's why we have set up an 800 number. We are also registered with-In the state, and what they realfy mean Is that you should be careful. How long is this good for? We don't have a set time for the sponsorship to expire; we give everyone an opportunity to renew, each year. Where did you get my name? We call everyone in our calling database which include residents throughout the U.S. IF ANY QUESTION IS ASKED AND DOES NOT APPEAR HERE GET A SUPERVISOR IMMEDIATELYUI IN THE CIRCUIT COURT OF COOK COUNTY, ILLINOIS . COUNTY DEPARTMENT, CHANCERY DIVISION THE PEOPLE OF THE STATE OF ILLINOIS ex rei. LISA MADIGAN, Attorney General oflllinois, Plaintiff, vs J ) ) ) ) CALLAN PUBLISHING, INC., a Minnesota business ) corporation doing business as (d/b/a) PUBLIC ) SAFETY SERVICES; SAFETY PUBLICATIONS, ) INC., an Illinois business corporation; ADAM ) HERDMAN; ARTJlUR OLIVERA; SALVATORE ) . TRIVERI also known as (alkla) JASON TRIVERI; and ), .JIMMIE KORONAKOS also known as (a/k/a) JIMMY ) ' ) KORONAKOS Defendants. ) Case No. 02 CH 20651 CONSENT DECREE AS TO DEFENDANTS SAFETY PUBLICATIONS. INC.. ADAM HERDMAN. and ARTHUR OLIVERA The PEOPLE OF THE STATE OF ILLINOIS ex rei. LISA MADIGAN, Attorney General of Illinois, having filed a Complaint in the above cause on November 14, 2002 against the Defendants herein, including but not limited to Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHOR OLIVERA, alleging that said Defendants have committed and are continuing to commit acts in violation of the Illinois Solicitation For Charity Act (225 ILCS , 460/1 et~. (1999)) and the common law of Illinois pertaining to solicitations for charitable contributions; the Plaintiff PEOPLE OF THE STATE OF ILLINOIS and Defendants SAFETY PuBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA, having agreed to the entry of this Consent Decree based upon the stipulated terms and conditions as set forth herein without any admission of liability; and the Court being fully advised in the premises: IT IS HEREBY AGREED AND STIPULATED BY THE PARTIES THAT: 1) This Court has jurisdiction over the subject matter and over the parties herein, namely Plaintiff the PEOPLE OF THE STATE OF ILLINOIS ex rei. LISA MADIGAN, Attorney General ofIllinois and Defendants SAFETY PUBLICA nONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA, (hereinafter collectively "the Parties"); EXHIBIT I L 2) .This Consent Decree is entered irito by the agreement of the Parties; 3) The Illinois Attorney General, acting on behalf of Plaintiff PEOPLE OF THE STATE OF ILLINOIS and in the interests of this State, was and is the proper party to commence these proceedings pursuant to the authority granted to the Attorney General under the Solicitation For Charity Act, 225 ILCS 460/1 et seq. (1999), and her common-law powers and duties as the .PEOPLE's legal representative with respect to the PEOPLE's beneficial interest in contributions and property solicited and held forcharitable purposes; 4) The Attorney General's Complaint alleges that from at least January 1, 2001 through the present . . Defendants ADAM HERDMAN and ARTHUR OLIVERA have served as the principals of Defendant SAFETY PUBLICAnONS, INC., an Illinois business corporation (hereinafter "SAFETY PUBLICA nONS, INC."), and were and are responsible for SAFETY PUBLICAnONS, INC. 's acts and practices; 5) Defendants SAFETY PUBqCAnONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA hereby agrees and stipulate as follows: .(a) During the period January 1, 2001 through December 31,2002, Defendant CALLAN contracted with Defendant SAFETY PUBLICATIONS, INC. in comiection with fund raising activities relating to the Fraternal Order of Police Lodge 7, and during that period gross sponsorship revenue of $707,319.18 was collected pursuant to the . contract between the parties; and (b) $401,986.14 of the Lodge 7 Sponsorship Program revenue collected was paid by CALLAN to SAFETY PUBLICA nONS, INC. for fund raising services pursuant to . contract between the parties; . 6) The Attorney General's Complaint alleges that from at least January 1,2001 through the present, Defendant SAFETYPUBICAnONS, INC. Solicitedthe public for charitable donations, and 2 . is a professional fund raiser as that term is defined in Section 1(d) of the Solicitation Act (225 ILCS 46011 (d) (1999)); 7) The Attorney General's Complaint alleges that from at least January 1,200 I through the present, Defendants SAFETY PUBLICAnONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA each failed to file with the Attorney General copies of any contracts between them and the charities on whose behalf they solicited, failed to disclose the terms of any of such contracts to the Attorney . General, and failed to pay the Attorney General the statutory $25-per-contract annual filing fee required to be paid by professional fund raisers in Illinois, and that such failures constitute violations . , of Sections 7(a), 7(b) and 7(c) of the Solicitation For Charity Act respectively; 8) The Attorney General's Complaint alleges that from at least January 1, 2001 through the present, Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and'ARTHUR OLIVERA did not directly enter into contracts with the charities on whose behalftheyperfonned charitable fund raising campaigns as described and stipulated herein, but ratherentered into contracts with Defendant CALLAN PUBLISHING, INC., a Minnesota corp?ration d/b/a PUBLIC SAFETY . . SERVICES (hereinafter "CALLAN") to perform said charitable fund raising campaigns in Illinois as CALLAN's "subcontracted" fund raiser, and that such arrangement was and is in violation of Sections 7(c) and II(a) of the Solicitation For Charity Act; 9) The Attorney General's Complaint alleges that from at least January 1, 2001 through the present, Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR . OLIVERA did not receive instructions from, were not managed or supervised by, and did not report . to the charities on whose behalf they performed charitable fund raising campaigns in Illinois as described and stipulated herein, but rather that SAFETY PUBLICAnONS, INC., ADAM HERDMAN, and ARTHUR O~IVERA received all instructions relating to said fund raising from Defendant CALLAN; 10) The Attorney General's Complaint alleges that from at least January 1,2001 through the present, Defendants SAFETY PUBLICAnONS, INC., ADAM HERDMAN, and ARTHUR 3 OLIVERA submitted incomplete and inaccurate financial report materials to the Attorney General for the calendar year 200 1 and failed to adequately account to the Attorney General as required under Section 6(d) of the Solicitation For Charity Act; . . 11) the Attorney General's Complaint alleges that from at least January 1,2001 through the present, Defendants SAFETY PUBLICATIONS, mc., ADAM HERDMAN, and ARTHUR OLIVERA employed and/or otherwise retained for compensation Defendants SALVATORE . TRlVERl a/k/a JASON TRlVERl and nMMY KORONAKOS asprofessional solicitors to actually solicit charitable contributions from the Illinois public on behalf ofcharitable organizations despite the fact that said individuals. were convicted of felony crimes, in violation of Section 6(f) of the Solicitation Act; 12) Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA, without admission of liability, each hereby agree and stipulate to the entry of this Consent Decree under the temIS contained herein; and 13) Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA each acknowledge the requirement that they operate in such a manner as to comply with' the requirements of the Solicitation For Charity Act, 225 ILCS 460/1 et ~. (1999); IT IS HEREBY FURTHER AGREED AND STIPULATED BY THE PARTIES AND ORDERED AS A CONSENT DECREE THAT: (A) Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA hereby agree and stipulate, and it is hereby ordered, that Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA shall deliver to the Attorney General of Illinois, Bureau of Charitable Trusts, payment(s) totaling THIRTY THOUSAND DOLLARS ($30,000.00), by certified check(s) or like tender, made payable to the 4 "Illinois Charity Bureau Fund" as follows: (I) That within thirty (30) days ofthe entry ofthis Consent Decree, Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA shall . deliver to the Attorney General of Illinois, Bureau of Charitable Trusts, payment(s) totaling TWENTY THOUSAND DOLLARS ($20,000.00), by certified check(s) or like tender, made payable to the "Illinois Charity Bureau Fund"; and (2) That Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA shall deliver to the Attorney General of Illinois, Bureau of Charitable Trusts, payment(s) totaling TEN THOUSAND DOLLARS ($10,000.00), by certified check(s) or like tender, made payable to the "Illinois Charity Bureau Fund" by no later than May 1, 2004; . (B) The Attorney General shall deposit said payments totaling THIRTY THOUSAND DOLLARS ($30,000.00) into the Illinois Charity Bureau Fund; (C) Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA hereby agree and stipulate, and it is hereby ordered, that Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA are hereby permanently enjoined from soliciting charitable contributions in any manner whatsoever in or from Illinois or from Illinois residents or for and/or on behalf ofany charitable or ostensibly charitable entity or cause in or based in Illinois without complying with the requirements of the Solicitation For Charity Act (225 ILCS 460/1 et sss. (1999»; (D) DefendantsSAFETYPUBLICATIONS,INC.,ADAMHERDMAN,andARTHUROLIVERA hereby agree and stipulate, and it is hereby ordered, that Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA shall conform at all times to Section 7(c) and 5 ll(a) of the Solicitation For Charity Act, refrain from acting as "subcontracted" professional fund (E) Defendants SAFETY PUBLICATIONS, INC" ADAM HERDMAN, and ARTHUR OLIVERA hereby agree and stipulate, and it is hereby ordered, that for purposes offuture conduct, Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA shall conform . .at all times to Section 6(f) and Section ' . . ' . . . 1m ofthe Solicitation For Charity Act, and in particular shall refrain from causing or allowing third parties who are not registered professional solicitors and . "natural persons" to solicit charitable contributions in or from Illinois or from Illinois residents by contract or otherwise; . (F) Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA hereby agree and stipulate, and it is hereby ordered, that for purposes of future conduct, Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA shall conform at all times to Section 6(f) and Section 1U) ofthe Solicitation For Charity Act, and in particular shall refrain from causing or allowing third parties who are and/or have been convicted of a felony crime( s) or ofa misdemeanor(s) involving fiscal wrongdoing, breach offiduciary duty, or a violation of the Solicitation For Charity Act to solicit charitable contributions in or from Illinois or from Illinois residents by contract or otherwise; (G) Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA hereby agree and stipulate; and it is hereby ordered, that for purposes of future conduct the I Solicitation For Charity Act (225 ILCS 460/1 essse. (1999)) requires a charity to maintain direct contractual and supervisory powers over each of the professional fund raisers soliciting the public for contributions on its behalf in or from the State of Illinois. c (H) Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA hereby further agree and stipulate, and it is hereby ordered, that for purposes of future conduct, any 6 and all contracts to which Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and/or ARTHUR OLIVERA shall become a party subsequent to the entry of this Consent Decree and/or to which Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and/or ARTHUR shall be renewed and/or extended subsequent . OLIVERA are already a party and which . to the entry ofthis Consent Decree, which contract(s) relate to any manner of fund raising for any charitable and/or ostensibly charitable purpose(s) conducted within Illinois or involving the solicitation ofIllinois residents on behalfof any charitable entity/organization and/or public safety personnel organization, shall: (l) have as a party to the contract, the charitable entity/organization and/or public safety personnel organization on whose behalfprofessional fund raising campaigns for any charitable and/or ostensibly charitable purpose(s) are to be performed under the . contract; (2) provide that the charitable entity/organization and/or public safety personnel organization that is a party to the contract have direct and primary contractual and supervisory powers over each ofthe professional fund raisers soliciting the public for contributions on its behalffor any charitable and/or ostensibly charitable purpose(s); (3) contain a provision specifically detailing the following: (a) what percentage of the total funds solicited and collected pursuant to each and every fund raising campaign for any charitable and/or ostensibly charitable purpose(s) performed under thecontract will be retained by and/or paid to the charitable entity/organization and/or public safety personnel organization as a result of the fund raising campaign(s); however, if the contracted payment amount to the charity is not based on a percentage oftotal funds raised, the contract shall specify how much ofthe total funds solicited and collected pursuant to each and every fund raising campaign for any charitable and/or ostensibly charitable purpose(s) performed under the 7 contract will be retained by and/or paid to the charitable entity/organization and/or public safety personnel organization as a result of the fund raising carripaign(s); and (b) much of the, total funds solicited and collected what percentage and/or how . pursuant to any and all fund raising campaigns for any charitable and/or ostensibly charitable purpose(s) performed under the contract will be paid to . each professional fund raiser named as a party, or referred to, in the contract, its agents, employees and solicitors; (4) specify that each charitable entity/organization and/or public safety personnel organization on whose behalf fund raising campaign(s) for any charitable and/or ostensibly charitable purpose(s) are to be performed pursuant to said contract shall . have the responsibility to (a) be registered with the Illinois Attorney General prior to the start of any such fund raising campaigrus); (h) maintain registration with the Illinois Attorney General for the duration of said contract and any renewal period thereof; (c) file copies of the contract with the Attorney General; (d) keep adequate and detailed records relating to the fund raising campaign(s) performed under said contract; and (e) file annual financial reports and accountings with the Attorney General as required pursuant to the Solicitation For Charity Act for the duration of said contract and any renewal period thereof; (5) 'specify that each and every professional fund raiser that is a party to the contract and/or which shall participate in any fund raising campaign(s) for any charitable and/or ostensibly charitable purpose(s) to be performed pursuant to said contract shall have the responsibility to (a) be registered with the Illinois Attorney General prior to the start of their involvement and/or participation in any such fund raising campaign(s); (b) maintain registration with the Illinois Attorney General for the duration of said contract including any renewal period thereof; (c) file copies of the fund raising contract with the Attorney General as required by the Solicitation For 8 " Charity Act; (d) procure and maintain and file with the Attorney General a bond of $10,000 to the extent required by the Solicitation Act'; (e) keep adequate and detailed records relating to the fund raising campaignt s) performed under said contract; (f) file annual' financial reports and accountings that have been signed by the charitable entity/organization and/or public safety personnel organization with the Attorney General as required pursuant to the Solicitation For Charity Act; and (g) submit to each charitable entity/organization and/or public safety personnel organization on whose behalf said professional fund raiser(s) shall perform and/or participate in a fund raising campaign for any charitable and/or ostensibly charitable purpose(s), and the Attorney General, a full written six-month report and accounting of all funds it or its agents collected on behalf of each said charitable entity/organization and/or public safety personnel organization pursuant to the contract as required by the Solicitation For Charity Act; (6) specify that each and, every professional solicitor, and/or professional fundraiser consultant that is a party to the contract and/or which shall participate in any fund raising campaign(s) for any charitable and/or ostensibly charitable purpose(s) to be performed pursuant to said contract shall have the responsibility to (a) be registered with the Illinois Attorney General prior to the start of their involvement and/or , participation in any such fund raising campaign(s); and (b) maintain registration with the Illinois Attorney General for the duration ofsaid contract and any renewal period thereof; and (7) meet all requirements of Section 7 of Illinois Solicitation for Charity Act; (1) This matter, as it relates to Defendants SAFETY PUBLICATIONS, [Nc., ADAM HERDMAN, and ARTHUR OLIVERA, shall be dismissed from this cause upon its delivery to the Attorney General of the TWENTY THOUSAND DOLLARS ($20,000.00) payment(s) as provided in Paragraph A( 1) herein, subject to the Court retaining jurisdiction ofthis cause over said Defendants 9 I for the purposes of overseeing compliance with and enforcement of this Consent Decree; however, if Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA fail to timely deliver the TWENTY THOUSAND DOLLARS ($20,000.00) payment(s) to the Attorney General as provided in Paragraph A( I ) herein, the Court shall reinstate this action and .vacate any dismissal of this cause as it relates to Defendants SAFETY PUBLICATIONS, INC., ADAM HERDMAN, and ARTHUR OLIVERA. AGREED TO: THEPEOPLEOFTHESTATEOFILLINOISex rel. LISA MADIGAN, Attorney General of Illinois, . AD BY:-t-:'(..~~~~-......,,----,---- ARTHUR OLIVERA By:h ~ C:>\-t--- ,UIUr,r DfI~mQ J. WRQIPf JUDGE ..r, NOV 1 4 2003 Ci rcuit Court . Z 1.3 THERESE HARRlS #99000 BARRY S. GOLDBERG Assistant Attorneys General Charitable Trusts and Solicitations Bureau 100 West Randolph Street, 3Td Floor Chicago, Illinois 60601 Telephone: (312) 814-2524 10 IN THE CIRCUIT COURT OF COOK COUNTY, ILLINOIS COUNTY DEPARTMENT, CHANCERY DIVISION THE PEOPLE OF THE STATE OF ILLINOIS ex rei. LISA MADIGAN, Attorney General of Illinois, Plaintiff, vs AUTOMATED PROFESSIONAL MARKETING, LLC, an Illinois limited liability company; ADAM HERDMAN; and ARTHUR OLIVERA, Defendants. ). ) ) ) ) ) ) ) ) ) No. 07 CH 26503 . CONSENT DECREE AND JUDGMENT The PEOPLE OF THE STATE OF lLLINOlS ex rel. USA MADIGAN, Attorney General of lIIinois, filed a Complaint in the above cause on September 21,2007. The Complaint alleges that the Defendants have committed and are continuing to commit acts in violation ofthe IJIinois Solicitation For Charity Act (225 ILCS 460/1 et seq.) and the common law ofIllinois pertaining to solicitations for charitable contributions. The PlaintiffPEOPLE OF THE STATE OF ILLINOlS and Defendants AUTOMATED PROFESSIONAL MARKETING, LLC (hereinafter "APM"); ADAM HERDMAN (hereinafter "HERDMAN"); and ARTHUR OUVERA (hereinafter "OUVERA"), having each agreed to the entry of this Consent Decree and Judgment based upon the terms and condi tions as set forth herein in order to settle all matters raised in this litigation; and the Court being fully advised in the premises: IT IS HEREBY AGREED, STIPULATED AND FOUND THAT: 1. This Court has jurisdiction over the subject matter and over the parties herein; 2. This Consent Decree and Judgment is entered into by the agreement of the Plaintiff the PEOPLE OF THE STATE OF TLLINOlS ex reI. LISA MADIGAN, Attorney General of l1linois and Defendants APM, HERDMAN and OLIVERA; 3. The l1linois Attorney General, acting on behalf of the PEOPLE OF THE STATE OF . lLLINOIS and in the interests of this' State, is the proper party to commence these proceedings pursuant to the authority granted to the Attorney General under the Sol icitation For Charity Act (225 ILCS 460/1 et seq.), and her common-law powers and duties as the PEOPLE's legal representative with respect to the PEOPLE's beneficial interest as ultimate beneficiaries of charitable organizations and property solicited and held for charitable purposes; 4. Defendants APM, HERDMAN and OLIVERA hereby agree and stipulate that APM is a for­ 1 . EXHIBIT M profit Illinois limited liability company that was organized by Defendants HERDMAN and OLIVERA on or about February 20, 1997 to perform, among other things, telemarketing and marketing activities; 5. Defendants APM, HERDMAN and OLIVERA hereby agree and stipulate that Defendants HERDMAN and OLIVERA are the owners and only members of Defendant APM and the persons responsible for APM's acts and practices in Illinois; 6. Defendants APM, HERDMAN and OLIVERA hereby agree and stipulate that Defendant APM was and is a "professional fund raiser" as that term is defined in Section l(a) of the Solicitation For Charity Act (225 ILCS 4601J (a»; and 7. Defendants APM, HERDMAN and OLIVERA, without admitting liability but recognizing the allegations of the PEOPLE OF THE STATE OF ILLINOIS in the Complaint and desiring to settle the matters addressed in this Case before the taking of any discovery or testimony, consent to the entry of this Consent Decree and Judgment upon the terms and conditions contained herein. . . IT IS HEREBY AGREED, ORDERED, ADJUDGED AND DECREED THAT: A. Defendants APM, HERDMAN and OLIVERA, each hereby agree, and it is hereby ordered, that Defendants APM, HERDMAN and OLIVERA pay a civil penalty in the amount of THIRTY THOUSAND DOLLARS ($30,000.00) (hereinafter the "Judgment"); B. Defendants APM, HERDMAN and OLIVERA, each hereby agree, and it is hereby ordered, that upon the entry of this Consent Decree and Judgment, Defendants APM, HERDMAN and OLIVERA shall deliver to the Attorney General of Illinois, Charitable Trusts Bureau, payment(s) totaling TEN THOUSAND DOLLARS ($10,000.00), by certified check(s) or like tender, made payable to the "Illinois Charity Bureau Fund" in partial satisfaction of the Judgment entered herein; C. Defendants APM, HERDMAN and OLIVERA, each hereby agree, and it is hereby ordered, that in order to satisfy the remaining TWENTY THOUSAND DOLLARS ($20,000.00) balance of the Judgment "entered herein, Defendants APM, HERDMAN and OLIVERA shall make periodic installment payments as follows: . (I) That beginning on February 15, 2008, and continuing on the fifteenth (I 5th ) day of each month thereafter for a period not to exceed 10 months, Defendants APM, HERDMAN and OLIVERA shall deliver to the Attorney General of Illinois, Charitable Trusts Bureau, periodic installment payments of at least TWO­ THOUSAND DOLLARS ($2,000.00) each per month, by certified checkts) or like tender, made payable to the "Illinois Charity Bureau Fund" until the balance owed thereon is paid in full; and (2) In the event that Defendants APM, HERDMAN and OLIVERA fail at any time to 2 '( timely make any two monthly payments on the periodic installment payments as set forth above, Defendants APM, HERDMAN and OLIVERA, either acting individually, collectively, and/or by and/or through any agent(s), employee(s), successor(s) and/or any person(s) acting in concert with any ofthem and/or at anyof their direction, and/or any corporation, limited liability company, partnership and/or any other entity owned and/or controlled in whole or in part by Defendants HERDMAN and/or OLIVERA, shall be immediately and irrevocably permanently enjoined from engaging in any manner of fund raising activities in the State of Illinois and from soliciting, receiving and/or collecting contributions by any means in or from Illinois or from Illinois residents or for and/or on behalf of any charitable and/or ostensibly charitable cause and/or entity and/or organization and/or public safety personnel organization in or based in Illinois, and the entire remaining unpaid balance on the Judgment entered herein shall become immediately and irrevocably due and the Plaintiff may immediately thereafter execute and act to collect on said Judgment; D. Defendants APM, HERDMAN and OLIVERA each hereby agree, and it is hereby ordered, that subsequent to the entry of this Consent Decree and Judgment, and so long as Defendant APM shall remain unregistered as a professional fund raiser pursuant the Solicitation For Charity Act (225 ILCS 460/1 et seq.), Defendant APM shall cease any and all fund raising activities in the State of Illinois and shall not solicit, receive or collect contributions whatsoever in or from Illinois or from Illinois residents or for and/or on behalf of any charitable and/or ostensibly charitable cause and/or entity and/or organization and/or public safety personnel organization in or based in Illinois; E. Defendants APM, HERDMAN and OLIVERA each hereby agree, and it'is hereby ordered, that if at any time subsequent to the entry ofthis Consent Decree and Judgment, Defendant APM shall decide to commence fund raising activities in the State of Illinois and/or to otherwise solicit, receive or collect contributions in or from Illinois in any manner whatsoever for and/or on behalf of any charitable and/or ostensibly charitable cause and/or entity and/or organization and/or public safety personnel organization in or based in Illinois, Defendants APM, HERDMAN and OLIVERA must: (1) Register with the Attorney General as a professional fund raiser pursuant to the requirements of the Solicitation For Charity Act (225 ILCS 460/1 et seq.); (2) Comply with the requirements ofthe Solicitation For Charity Act (2251LCS 460/1 et seq.), including but not limited to: (a) Timely filing of all required documents and the timely payment of all appropriate fees; and (b) Taking all reasonable steps necessary to direct and monitor APM's fund raising activities to ensure, among other things, that: (i) prospective donors are promptly informed in any verbal solicitation that the solicitation is being made by a paid professional fund raiser; and 3 (ii) no misrepresentations of fact are made in any APM solicitation; F. Defendants APM, HERDMAN and OLIVERA each hereby agree, and it is hereby ordered, that for purposes of future conduct, Defendants APM, HERDMAN and OLIVERA, either acting individually, collectively, and/or by and/or through any agent(s), employee(s), successor(s) and/or any other person(s) acting in concert with any of them and/or at any of their direction, and/or any corporation,' limited liability company, partnership and/or any other entity owned in whole or in part and/or controlled by Defendants HERDMAN and/or OLIVERA, are each hereby permanently enjoined from soliciting charitable contributions in any manner whatsoever in or from Illinois or from Illinois residents or for and/or on behalf of any charitable and/or ostensibly charitable cause and/or entity and/or organization and/or public safety personnel organization in or based in JIIinois without complying with the requirements of the Solicitation For Charity Act (225 ILCS 460/1 et seq.); G. Defendants APM, HERDMAN and OLIVERA hereby each agree, and it is hereby Ordered, that ifat any time subsequent to the entry of this Consent Decree and Judgment, Defendants APM, HERDMAN and OLIVERA, either acting individually, collectively, and/or by and/or through any agent(s), employee(s), successor(s) and/or any person(s) acting in concert with any of them and/or at any of their direction, and/or any corporation, limited liability company, partnership and/or any other entity owned and/or contro lied in whole or in part by Defendants HERDMAN and/or OLIVERA, are discovered to have violated any of the injunctions as provided in Paragraphs E and F herein in any manner or in any degree, the Plaintiff, the PEOPLE OF THE STATE OF ILLINOIS, shall, upon finding ofsuch violation before the Chancery Division ofthe Circuit Court ofCook County, lIIinois, be entitled by the irrevocable agreement of Defendants APM, HERDMAN and OLIVERA to a Stipulated Penalty in the form of a judgment in favor of the Plaintiff PEOPLE and against the Defendants APM, HERDMAN and OLIVERA jointly and severally in the amount ofTWO THOUSAND DOLLARS ($2,000.00) for each violation, and such shall be in addition to any and all applicable judgments, surcharges, forfeitures, fines and/or penalties as appropriate and as provided for under the provisions ofthe Charitable Trust Act (760 ILCS 55/1 et seq.) and/or the Solicitation For Charity Act (225 ILCS 460/1 et seq.), and shall further be in addition to any other and further relief as the Court deems appropriate for said violations, including but not limited to money damages for contempt of court; H. Defendants APM, HERDMAN and OLIVERA hereby agree and consent that the TWO THOUSAND DOLLARS ($2,000.00) judgment referred to in Paragraph G herein as relief for each and every violation of the injunctions as provided in Paragraphs E and F herein, shall not require any proofof further loss and shall be entered by the Court upon the finding ofa violation of the injunctions contained in Paragraphs E and F herein by Defendants APM, HERDMAN and OLIVERA and/or any of their agents, employees and/or successors in interest; I. Defendants APM, HERDMAN and OLIVERA hereby agree, and it is hereby Ordered, that 4 Defendants APM, HERDMAN and OLIVERA shall not seek to discharge any part of the Judgment contained herein in bankruptcy; J. Nothing contained in this Consent Decree and Judgment shall be construed to limit in any manner the Attorney General's common-law or- statutory powers and duty to protect charitable assets and property in Illinois, or her authority to investigate and/or take any and all action necessary to enforce the laws ofthe State ofIllinois pertaining to individuals and/or entities soliciting charitable contributions in any manner whatsoever in or from Illinois or from Illinoi s residents or for and/or on behalfofany charitable entity and/or cause in or based in Illinois; and K. This matter is hereby dismissed; however, this Court shall retain jurisdiction ofthis cause for the purpose of overseeing compliance with and enforcement of this Consent Decree and Judgment. AGREED TO: THE PEOPLE OF THE STATE OF ILLINOIS ex rel. LISA MADIGAN, ttorney General ofIllinois, BY:.-'-'L:...E:.----.::ll".....I..L...I:_.........::::~----­ Adam Herdman, Me ber I\~~' --'----\-----------­ BY: ADA ~rthur Olivera, Member ARTHUR OLIVERA BY: A~ ~-­ Arthur Olivera ENTER: DATE: THERESE HARRIS #99000 BARRY S. GOLDBERG JOYCEC. KU Assistant Attorneys General Charitable Trusts Bureau 100 West Randolph Street, 11th Floor Chicago, Illinois 60601 Telephone: (312) 814-2595 5 -----::'=""""'~'__+-­ ~~:---____=<;....____-_+_­