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State settles charity telemarketing suit
Company can't solicit here for EMS, firefighters, state troopers until 2009

Published: Thursday, May 4, 2006 - 6:00 am


By Dan Hoover
STAFF WRITER
dchoover@greenvillenews.com

Secretary of State Mark Hammond said Wednesday his office had reached a record-high settlement for alleged charitable solicitation violations.

Hammond said Xentel Inc. of Ft. Lauderdale, Fla., has agreed to pay $100,000 for alleged violations related to fund-raising in South Carolina on behalf of the American Association of State Troopers and South Carolina Professional Firefighters and EMS Providers.

Xentel President David Winograd couldn't be reached for comment.

The Assurance of Voluntary Compliance document signed by Winograd and corporate counsel Errol Copilevitz of Kansas City "does not constitute an admission of liability or guilt."

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The alleged violations include failing to disclose that the callers were paid solicitors and their out-of-state location and misrepresentations of how contributions would be spent, Hammond said.

Hammond said the settlement agreement prohibits Xentel from calling South Carolinians on behalf of the charities until 2009.

His agency's investigation was triggered by "numerous complaints" from South Carolinians, Hammond said.

Hammond said the South Carolina fine would be used for public service announcements and printed materials to "help donors give wisely."

Individuals and organizations raising money in South Carolina are regulated under the state's Solicitation of Charitable Funds Act.

Hammond, Spartanburg County's clerk of court when he was elected secretary of state in 2002, faces a June 13 Republican primary challenge from William McKown, a Surfside Beach businessman. The Democratic nominee is Cheryl Footman of Orangeburg.