Wednesday, March 31, 2010

CREW, VoteVets File IRS, FTC Complaints Against Sean Hannity Charity Freedom Concerts

CREW, VoteVets File IRS, FTC Complaints Against Sean Hannity Charity Freedom Concerts

Freedom Concerts, Sean Hannity's scholarship charity for the children of fallen soldiers, has violated its charitable tax status, according to a Washington advocacy group.

Citizens for Responsibility and Ethics in Washington alleges that Hannity's Freedom Concerts has "engaged in deceptive and illegal marketing practices by suggesting that all concert ticket sale revenue goes directly to scholarships for children of killed and wounded service members." CREW and veterans groupVoteVets have filed complaints with the IRS and the Federal Trade Commission about Freedom Concerts, Freedom Alliance, and Lt. Col. Oliver North.

The two groups hosted a joint press conferenceMonday to discuss their complaints. VoteVets Chair Jon Soltz questioned Freedom Concert's priorities. "It's appalling and absurd that... 80-90% of the money [raised] is going toward overhead, not scholarships," Soltz said.

"They've made statements that 100% of [all] funds go toward scholarships," said Melanie Sloan, the executive director of CREW. "This is the kind of deceptive marketing the FTC looks poorly upon."

Freedom Concerts events have been organized by Premier Marketing, according to conservative blogger Debbie Schlussel and CREW. Premier Marketing is operated by Duane Ward, the speaking engagement agent for both Sean Hannity and Oliver North, according to Schlussel.

According to CREW, Freedom Concerts donates some money to Freedom Alliance, an organization founded by North. He is now the group's honorary chairman.

A little more than a week ago, Schlussel called out Hannity's charity for what she described as a "huge scam":

...less than 20%-and in two recent years, less than 7% and 4%, respectively-of the money raised by Freedom Alliance went to these causes, while millions of dollars went to expenses, including consultants and apparently to ferry the Hannity posse of family and friends in high style. And, despite Hannity's statements to the contrary on his nationally syndicated radio show, few of the children of fallen soldiers got more than $1,000-$2,000, with apparently none getting more than $6,000, while Freedom Alliance appears to have spent tens of thousands of dollars for private planes. ...

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