Police hire convicted felons to raise money for memorial

Each year, the memorial foundation holds a service to recognize those officers who have died, but this year the board's executive director, retired Plainville Police Chief Ned Merrick, is in an uncomfortable position, trying to explain why David Gargano has been raising money for the memorial.

“Did you know he had this criminal record?” FOX Undercover's Mike Beaudet asked.

“I did not,” replied Merrick.

It's not just any criminal record.

Gargano pleaded guilty to deceptive solicitation practice and larceny in 1992 and was sentenced to 3 ½ to 5 years in prison. As part of his probation he was ordered not to participate in any charitable solicitations for four years after he was released.

But the criminal record was apparently a mystery to the Memorial Foundation Board and its executive director who also runs a business doing background investigations.

“You specialize in background investigations, should you have known about this?” asked Beaudet.

“If I was doing a background check for you, you're going to pay me. Because I have to pay to get it,” said Merrick.

“But it's your organization, shouldn't you have done your due diligence?” asked Beaudet.

“I don't know, in hindsight maybe I could have,” replied Merrick.

It turns out a full background check wasn't even needed.

A Google search of Gargano's name uncovers a 2012 Boston Phoenix story which raised questions about why the Boston Police Patrolmen's Association hired Gargano to raise money.

The Mass. Law Enforcement Memorial hired Gargano the following year.

Merrick says Gargano stopped working for the memorial earlier this year after complaints he was threatening to retaliate against a business that would not donate and misrepresenting himself as collecting money for a specific police department when he wasn't.

Gargano uses the name Frank Ryan when asking for donations and was listed on the memorial's website until last week.

That stage name caught the attention of Boston College professor Tiziana Dearing who specializes in nonprofit organizations.

“I've been in this sector almost my entire career, I've never crossed somebody before who didn't use their real name in fundraising,” said Dearing.

Dearing was also surprised to hear Gargano kept 66% of the money raised.

That money went to Commonwealth Productions, a company run by Gargano's wife Lisa Hutchinson, who also pleaded guilty to the same fundraising fraud charges as Gargano.

Gargano raised $264,292 for the memorial and kept $145,032, according the Chief Merrick.

“66% of the money going to the fundraiser, is that typical?” Beaudet asked Professor Dearing.

“No. No it is not typical,” said Dearing. ”The vast majority of fundraising is done by paid professionals who work for an organization and they draw a reasonable salary. There is no cut, no percentage. No take.”

Chief Merrick says he believed that's how all fundraisers operated.

“Isn't that misleading to the companies that donated? They think they're helping out the memorial, and most of that money is going to this guy?” asked Beaudet.

“Yeah, when you look at it like that, yeah it is,” said Merrick.

Professor Dearing says most nonprofits try to keep the cost of fundraising at below 20% of the total amount of money coming in and suggests asking charities how much of your money is going to fundraising.

The Law Enforcement Memorial Foundation tells FOX Undercover it's giving fundraising a break for a while, now that it has more than $100,000 in the bank to pay for upkeep and costs associated with its annual ceremony.

David Gargano and Lisa Hutchinson did not return phone calls for comment.