The group that sponsored a parade where a drag racer spun out of control and killed six people never registered as a charity in any of the states where it operated and hasn't filed required Internal Revenue Service paperwork since 2002.
The fatal crash happened last month in Selmer, a small town 80 miles east of Memphis, at a car show sponsored by Cars for Kids, which Larry Price founded in 1990 to raise money for children's charities.
Cars for Kids has already staged car shows in Tennessee, Mississippi and Louisiana this year, and still plans shows in Illinois, Arkansas and Missouri, according to its Web site, but it has never been properly registered as a charity in any of those states, according to a review by The Associated Press.
Price's attorney, Steve Farese Sr., said Friday that the charity's paperwork problems are “just an oversight” and do not reflect on its safety.
“The car shows were put on, especially this one, in full compliance with the city,” Farese said. “The police chief, the fire chief, the board of aldermen were all there.”
After the crash, Price tried to get his paperwork in order and submitted a charitable application in Tennessee, but state officials denied the application this week because of financial discrepancies.
Tennessee law provides for a penalty of up to $5,000 for each unauthorized solicitation for money, but the Charitable Solicitations Division has not yet recommended fines because an investigation is ongoing.
Tax records from 2002 show that Cars for Kids made donations to St. Jude Children's Research Hospital in Memphis, and to the West Tennessee Cerebral Palsy Association and the Carl Perkins Center for the Prevention of Child Abuse, both in Jackson.
Price said Friday in a phone interview from Selmer that his charity is licensed.
“It's licensed in Tennessee; we're licensed in Mississippi,” Price said. “It's something nobody knows about. It's a gaming permit.”
Price then hung up without answering further questions.
The Mississippi Gaming Commission has no record of a license for Cars for Kids, said Eddie Williams, director of charitable gaming.
Calls to Kevin Redmon, who prepared the charity's federal financial statements, were not returned Friday.
Charity laws differ by state, but most require charities to register in every state where they do business.
Australian-born pro drag racer Troy Critchley was performing a “burnout” routine — spinning the tires sending up clouds of smoke — when he apparently lost control and careened into a crowd of spectators.
Five lawsuits totaling $44.25 million for medical bills and punitive damages were filed this week in McNairy County Circuit Court by Knoxville-based law firm Gilbreath & Associates on behalf of injured spectators.
Previously filed wrongful death lawsuits on behalf of three of the victims ask for $30 million in damages.
