More on AV123 Raffles - Unintended Consequences
An affected party with respect to alleged wrongdoings brought something rather interesting to my attention that I'd like to share with everyone.
Apart from the questions concerning the raffles such as did the recipients receive all or parts of the monies (certainly serious issues with their own ramifications), there is another compelling problem for AV123. Were they legally able to even hold the raffles?
Laws concerning such things as raffles vary from state to state with respect to specifics, but common themes are apparent. Raffles are considered a form of gambling and as such are subject to regulation. In Colorado, as elsewhere, raffles are lumped together with bingo. These are run by not-for-profit organizations that have to have been in business for at least 5 years, have applicable internal procedures, a charter if you will, and must apply for a license from the state. AV123 and its officers (MLS, Lynn, Suzanne) are a for-profit organization. As such they are prohibited under Colorardo law from directly running raffles.
Is there any way they could have legally run a raffle?
Yes. They could have contracted with an organization that is legally allowed to run raffles. That might've been something like a church, volunteer fire department, Kiwanis Club, Masons, etc. The terms of the raffle would have to be specifically spelled out: Prize which must be donated, # of tickets to be sold and their cost, the agency or organization benefitting from proceeds, the duration of the raffle, contingency if the amount of tickets is not sold, etc. Accurate records would need to be kept, the drawing must be fair, and prizes and amounts to be donated must occur within a very short amount of time. If that cannot be done, applicable State agencies must be notified.
But what about places like McDonalds that have those Millionare type games? They're for profit companies!
Since you can get a free game piece writing, emailing, or calling as well as by buying product those don't fall under bingo/raffles but rather sweepstakes. They are governed by applicable State laws. What AV123 ran was not sweepstakes.
So, what is AV123 facing?
I'm not a lawyer nor have I slept with one. I think had AV123 run the raffles, given the money promptly, kept great records, and all the things everyone hoped had happened, maybe nothing would have happened. Maybe a fine/misdemeanor that would've been completely understandable and forgiven by most anyone. However, enormous improprieties have been committed by AV123. Likely they are not punishable by simply one charge that can be brought against them. From my readings I find that...
- They ran an illegal raffle.
- They did not contract with a legal organization that could do so.
- Prizes were not awarded promptly either to recipients or to organizations.
- Record keeping was poor. As an example, Randy Bessinger noticed in one of the raffles that even though he'd donated, his name only appeared after he'd commented publically.
- If records were altered, that is considered destruction of records and has its own punishments as it hinders or prevents investigations and prosecutions. Hence, if someone has information that records were altered, woe the person and also the company that did it.
- Each ticket sold can be a separate charge and a separate penalty.
- Aggregate amounts carry their own charge and penalties. As the total amounts rise, the class of crime moves from misdemeanor to different levels of felony.
- The multiple raffles that were run were all in violation. Hence AV123 and its officers may be considered repeat offenders. Penalties rise proportionately as do the level of felony.
- If deductions for product were taken, that was illegal and apart from laws that were violated with respect to illegal raffles, state and federal income tax laws were also circumvented.
- If the raffles were run and Mark bought the speaker or whatever prize from AV123 or vice versa afterwards, that means a raffle was held and the prize never existed. This is highly illegal.
- Since the internet/computers were used, there are sundry computer crimes that can be rightfully considered.
- Sarbane-Oxley laws may've been broken.
If Mark makes good, he may earn a couple of brownie points, but they will not exonerate him from having mutliple charges brought against him.
http://www.gambling-law-us.com can provide additional information including links to applicable Colorado regulations.
