Tuesday, July 20, 2010
Lawyers withdraw from Navy Vets proceedings
It's another sign of trouble for a mysterious group that gave large political donations.

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Previous coverage
- Navy Vets' lawyers want out of case
- Delegates seek wider investigation of veterans group
- Ohio is latest to add pressure to U.S. Navy Vets group
- Cuccinelli sets aside vets group donations
- Fla. moves to revoke license for vets group's fundraising
- States react to questions about veterans group
- Navy Vets aid didn't reach paralyzed veterans group as promised, reported
- Webb wants IRS to examine murky Navy veterans group
- Consumer agency looks into Navy Veterans group
- Staffer: Cuccinelli made no pledge to Navy Vets
- U.S. Navy Veterans Association agreed to stop soliciting
- U.S. Navy Veterans Association still in smokescreen
- Webb asks VA about screening process for veterans groups
- Governor to donate debated $5,000 from Fla.contributor
- Strange tale of cash, lawmakers, legislation, "veterans"
An Ohio judge allowed lawyers for the United States Navy Veterans Association to withdraw from legal proceedings there Monday -- another sign of trouble for an organization that is under investigation in Virginia and other states.
An attorney with the firm that has represented U.S. Navy Vets asked to withdraw because the group's only known remaining board member, Bobby Thompson, could not be found. A Hamilton County, Ohio, judge granted that request Monday and also issued an injunction that seals a UPS mailbox that the U.S. Navy Vets used as an address for its Ohio chapter, said a spokesman for Ohio Attorney General Richard Cordray.
A separate Ohio court has frozen the group's bank accounts in the state, and Cordray has ordered the Navy Vets to stop soliciting in Ohio.
Virginia's Department of Agriculture and Consumer Services began investigating the nonprofit veterans group in May to determine whether it has violated the state's charitable solicitation law. The group had disputed a finding by Virginia regulators last year that it was not exempt from filing annual registration documents with the state. The group lobbied for legislation this year that could enable it to gain such an exemption.
Thompson, whose last known residence is Tampa, Fla., donated $67,500 to Virginia political candidates last year, including $55,500 to Attorney General Ken Cuccinelli.
But as Virginia, Ohio and other states try to determine whether funds donated to assist veterans were being misappropriated, Thompson can't be found by the lawyers representing the group.
In a motion filed last week in Ohio, attorney Shaun Petersen stated that Thompson has been "unreachable" since June 20. The only other known board member had resigned, according to the motion.
Cordray has said it appears that funds raised by U.S. Navy Vets have been used for campaign contributions to candidates in Ohio and other states, a charge the association has denied.
Cuccinelli has put $55,500 in campaign funds in a restricted account and said he would donate it to veterans service organizations if Thompson is found to have misappropriated charitable funds. Gov. Bob McDonnell has donated $5,000 he received from Thompson to a military support organization, and three legislators who received smaller donations from Thompson have given the money to charities.




