Pubdate: Tue, 19 Aug 2003
Source: Winston-Salem Journal (NC)
Copyright: 2003 Piedmont Publishing Co. Inc.
Contact:  http://www.journalnow.com/
Details: http://www.mapinc.org/media/504
Author: David Ingram
Bookmark: http://www.mapinc.org/dare.htm (D.A.R.E.)
Bookmark: http://www.mapinc.org/af.htm (Asset Forfeiture)
Note: The Journal does not publish letters from writers outside its daily home
delivery circulation area.

HEGE'S ANSWERS LACKING

Secretary Of State Wants To Know More About His Foundation

LEXINGTON -- Weeks after the N.C. Secretary of State's office asked Sheriff
Gerald Hege for financial information on his Blue Line Foundation, state
officials say that Hege has yet to meet their request.

Hege and his wife set up the foundation in 1999 to raise money for families of
law-enforcement officers killed or injured in the line of duty.

In a series of written and telephone exchanges over the past several weeks,
state officials have repeatedly asked for copies of the foundation's financial
records so that they can determine whether it requires a license to solicit
charitable contributions.

Hege and his accountant, Lisa Horne, have responded only with a short
description of the foundation's methods for raising money, according to the
secretary of state's office.

In addition to inquiries from the secretary of state's office, the Blue Line
Foundation is under scrutiny by the State Bureau of Investigation. A
broad-ranging investigation of Hege and his activities has been continuing
since April at the request of Garry Frank, the district attorney for Davidson
County.

In a letter dated July 29, Hege listed five annual events that he and his wife
attend with representatives of the Drug Abuse Resistance Education program.
Hege wrote that he and his wife solicit donations for the Blue Line Foundation
at the Lexington Barbecue Festival and other functions.

'My wife and I attend several events during the year to meet and greet people,
and we often display vehicles purchased with drug-seized monies,' he wrote.
'The DARE cars are often items of great interest, so we do display the cars in
hopes of getting more contributions and to educate the general public about the
DARE program, in general.'

In a certified letter dated Aug. 5, a state official told Hege that his
response was inadequate.

'I greatly appreciate this submission -- however, Ms. Horne indicated in our
conversation that the organization would also submit the requested financial
information on the Blue Line Foundation,' wrote Lionel J. Randolph, the
director of the Charitable Solicitation Licensing Section of the N.C. Secretary
of State. 'Please be aware that our office is currently awaiting the financial
information in order to make a determination in this matter.'

Liz Proctor, a spokeswoman for the secretary of state, said yesterday that the
office has still not received the requested information from Hege.

Hege said yesterday that it was his understanding that the secretary of state's
request had been met weeks ago. He said that Horne was taking care of the
request.

'The accountant, she's handling all that,' Hege said. 'She sent in all the
forms and it was supposed to take a few weeks to process.'

Horne could not be reached for comment. A secretary in her office said that
Horne was on vacation and that it was unclear when she would return.

State law requires that any organization that solicits charitable contributions
acquire a license, unless the organization meets at least one of several
exemptions. Those exemptions include religious institutions and groups that
receive less than $25,000 a year and do not pay their officers.

Licensing officials say that they need to see the Blue Line Foundation's
records before they can determine if the organization is exempt.

An organization that is not exempt from state oversight and solicits
contributions without a license can be subject to penalties, fines or civil or
criminal prosecution.

Proctor said that the Charitable Solicitation Licensing Section has not yet
reached that point with the Blue Line Foundation, and that the state has not
given the foundation a deadline for providing its financial information.

'We try to give the group enough time to get the information we need,' Proctor
said.

The Charitable Solicitation Licensing Section sent its first letter and
application packet to Hege on June 16. The letter and packet were sent back to
the agency because Hege was on vacation.

A second letter and application were sent July 16, prompting the sheriff's July
29 response.

The Blue Line Foundation can still accept donations during the inquiries,
according to the secretary of state's office.
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