Kleen(ing) up the facts. The Kleen Energy Charity event update. May 2 2011

May 2, 2011

Mr. Doug Cartelli

Lion’s Den Connecticut

1385 Newfield Street

Middletown, CT  06457

Re; Lion’s Den – Kleen Energy Fundraising Event

Dear Mr. Cartelli:

BACKGROUND

            As you may know, this office had questions about the fundraising event sponsored by the Lion’s Den of Connecticut on behalf of the families of victims of the Kleen Energy explosion. The Public Charities Unit of the Department of Consumer Protection (the Department) has a duty to see that gifts raised for a charitable purpose are used for that purpose.  In that role, the Department has conducted an inquiry into this fundraising activity to ensure that funds raised on behalf of the families of the victims were properly used.

INVESTIGATION

            The efforts of the owners of the Lion’s Den, its employees and volunteers were responsible for the Fight the Good Fight event which was organized to raise funds for the families of the victims of the Kleen Energy Plant explosion.  The event was held on June 26, 2010.  Mr. Doug Cartelli of the Lion’s Den appears to have taken most of the responsibility of depositing the funds, keeping fund records and managing the disbursement of funds. 

            The Department requested all records of the fund raising event and received those records from Doug Cartelli.  Event proceeds were deposited into a Bank of America account.  Photocopies of each donor check deposited into the account were provided as well as copies of bank deposit records and cash deposit records.  The Department was provided with copies of bank checks, invoices and other confirmations corresponding to payment of event expenses including the payments made to the victims’ families.  The financial records were well organized and complete.

            The records show that a total of $49,154.36 was deposited into the bank account or paid directly out of receipts for event expenses.  This total includes some event expenses paid by the Lion’s Den for which it was not reimbursed.   Additionally, the Lion’s Den contributed the services of its employees and owners for which no value was assigned.  The financial records show that $17,836.36 was paid out for event expenses and the remaining $31,318.00 was paid to the victims’ families in cash and in reimbursement for their expenses in traveling to and attending the event.  Of that amount, cash payments were made to the families totaling $25,200.00.

CONCLUSION

                  The Department believes that its inquiry indicates that all funds have been accounted for and properly disbursed to the intended beneficiaries.  No further action will be taken in this matter.  Thank you for your cooperation.

Very truly yours,

Stephen E. Eaton, CPA

Supervising Accounts Examiner

Pc:  Attorney General George Jepson