The Clallam County Superior Court held that a charity that raised $360,000 for a dog shelter, but failed to register with the Secretary of State or produce required records of how the donations were spent, violated the Charitable Solicitations Act.

On Friday, April 3, in an oral ruling granting summary judgment to the state, Judge George Wood held that Olympic Animal Sanctuary once located in Forks, Washington, and its founder and executive director, Stephen Markwell, committed 48 violations of the Charitable Solicitations Act.

Judge Wood also held that Markwell can be held personally liable for all of the violations and that Markwell and the charity should be permanently enjoined from engaging in unfair or deceptive practices, according to a press release April 8 from the office of the state Attorney General.

The court took the state’s request for monetary sanctions under advisement and will rule at a later date. The Attorney General’s Office (AGO) asked for a maximum civil penalty of $96,000 ($2,000 per violation), and just over $20,000 in costs and fees. No written ruling has been issued yet because the monetary sanctions are undecided.

“Animal lovers who donated money to Markwell trusted that he was abiding by state law. He was not,” Attorney General Bob Ferguson said in a press release. “The court’s decision ensures he will be personally liable for his misconduct.”

The AGO had accused Markwell of unlawfully soliciting and collecting hundreds of thousands of dollars in charitable donations while not being registered as a charity with the Secretary of State. Markwell also did not file required annual solicitation reports with the Secretary of State. In addition, Markwell failed to maintain records of how the charitable donations were spent. 

The AGO claimed these actions violated the Washington’s Charitable Solicitations Act, an automatic violation of the Consumer Protection Act.

Markwell registered Olympic Animal Sanctuary as a federal, tax-exempt non-profit organization in 2007. However, his operation was not registered in Washington as required by law until April 2013 when he was contacted by the Secretary of State.

From 2009 to 2011 Markwell reported that he raised $360,000 from public donations. Markwell also solicited donations in 2007, 2008, 2012 and 2013, but he didn’t keep records, so the AGO doesn’t know how much additional money was brought in.

Animal rights activists began calling attention to the sanctuary in 2012. Markwell closed Olympic Animal Sanctuary in December 2014 and surrendered the dogs to a shelter in Arizona.

The Attorney General’s action does not address allegations of animal abuse or neglect as those issues do not fall within the Consumer Protection Act or Charitable Solicitation Act.

Concerns regarding animal welfare should be directed to city or county law enforcement and local animal care and control agencies. Consumers with concerns specifically about Olympic Animal Sanctuary and Stephen Markwell can contact Clallam County Animal Control at (360) 417-2459, or the Forks Police Department at (360) 374-2223.

For more information on finding charities, visit the SOS charity lookup. Consumers can also visit the SOS website for tips on giving wisely.