Fake WA veteran's charity fined nearly $1 million

TACOMA – A Pierce County Superior Court judge ordered a charity that deceptively claimed to help veterans to pay a total of nearly $1 million in restitution and financial penalties. The sham charity’s sole officer, Michael Friedmann, told consumers and donors their donations would benefit veterans and their families when none of the money raised did.

In November 2018, Washington Attorney General Bob Ferguson sued Spanaway-based Fallen Hero Bracelets asserting that they misled customers into believing their purchases were benefiting veterans’ charities like ones for separated families, service animals or children’s scholarships. Further, when consumers and donors asked Friedmann where their items were or questioned him, he then would verbally abuse them or threaten them.

Fallen Hero Bracelets sold bracelets engraved with names of soldiers killed in action, along with hats, pins, badges, coins and pens. Its now-defunct website claimed it used proceeds from sales to help veterans, including providing scholarships to children of soldiers killed in Iraq or Afghanistan, giving trained service dogs to soldiers suffering from severe PTSD and helping families dealing with separation and divorce.

Fallen Hero Bracelets did not provided any scholarships, trained service dogs or assistance to families, nor did it give any money to any of its 40 claimed beneficiaries. Fallen Hero Bracelets advertised that it made over 1.2 million sales worldwide between when it started in September 2015 and when the court ordered Friedmann’s businesses closed in November 2018.

In addition to not providing any money to charity, Friedmann sued customers who complained about slow delivery.

For example, a consumer in Washington bought a $40 t-shirt on Friedmann’s website. When she did not receive her purchase for more than 60 days, she complained to her credit union. Her credit union then sent a chargeback notice to Friedmann.

Friedmann eventually sent the shirt. The consumer returned it, wanting her money back. Next, Friedmann reported the customer to four different collection agencies, which promptly dropped the collection efforts after the consumer showed proof of the return. He then sued the consumer for $1,182.50 and the credit union for $5,000 in small claims court.

The Attorney General’s Office received 26 complaints concerning Fallen Hero Bracelets, almost all of which referenced the same conduct by Friedmann: delivery delays, being unable to contact Friedmann regarding order status and harassment as a result of consumers complaining or returning items.

The court ordered Friedmann pay $504,000 in restitution. The office was able to identify 51 affected consumers who filed complaints to organizations such as the Attorney General’s Office and the Better Business Bureau. Just over $13,000 will go to those consumers harmed by Friedmann’s conduct. Because Friedmann did not respond to any requests for information to identify additional customers as part of this lawsuit, leading to this default judgment, the court ordered the remaining restitution be paid to charities, honoring donors’ intent. The Attorney General’s Office will receive nearly $491,000 of that money to send to non-profits and charities that assist military families or law enforcement who died in the line of duty.

The court ordered an additional $322,000 in civil penalties that will go to the Washington state general fund. Friedmann must also pay nearly $169,000 in attorney costs and fees.