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Secretary of State files injunction against Carolina Youth Club

Staff Report //January 25, 2018//

Secretary of State files injunction against Carolina Youth Club

Staff Report //January 25, 2018//

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The S.C. Secretary of State’s office has filed an injunction against Carolina Youth Club alleging multiple violations of the Solicitation of Charitable Funds Act.

The action seeks to enjoin the organization from further solicitation in the state.

The petition alleges that the organization has failed to file its 2016 annual financial report and is soliciting contributions while its registration is suspended.

“The Carolina Youth Club has demonstrated blatant disregard for the law,” Secretary of State Mark Hammond said in a news relase. “Without the filings required under the Solicitation of Charitable Funds Act, we have no way of knowing whether the children who are ‘club members’ are benefiting from this organization’s charitable purpose, and neither does the donor.” 

The Carolina Youth Club, with offices listed in North Charleston and Charlotte on its website, hires children as independent contractors to sell cookies and other items door-to-door and claims the funds raised are used to provide recreational activities, electronics and scholarships for the children. The directors of Carolina Youth Club have operated similar organizations in other states, including New York, New Jersey, Maryland, Virginia and Georgia, Hammond's office said.

The Secretary of State’s petition also alleges that the Carolina Youth Club failed to disclose on its most recent registration statement that it had received a citation and fine from the S.C. Department of Labor, Licensing & Regulation for violating child labor laws. 

Hammond said his office received several complaints about the organization. 

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