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NEP’s Response to CLEAT’s False Allegations

Dear Clients

You may be aware of a news release issued by CLEAT that claims, among other things, that New Equity Productions was operating without benefit of the proper registrations in both Texas and California. As we are fully registered and in compliance in both Texas and California, we were surprised to see these false and misleading allegations. As a result, our attorney is considering potential legal recourse.

Normally, we would rather spend our day getting you the community support for your hard work but due to the widespread distribution of this false information, we felt compelled to bring this to your attention. Here are the facts:

1. NEP is legally registered in Texas, both as a foreign corporation doing business in Texas and as a Public Safety Solicitor. In fact, we registered to do business in Texas in August 2014, and as a solicitor in October, 2014, well before our operations began. We are currently in the process of renewing our registration for the upcoming year. We are including the numbers here but as always you can find the certificates on our website: Secretary of State (Reg. No.802058350) and also with the Texas Attorney General’s Office (Public Safety Solicitor is No. 20140002). As an aside, we are also registered with the Attorney General of our home state of California.

2. NEP does business under the name of NEP Websites, Inc. and our DBA is filed, registered and in compliance with the Texas state law.

3. CLEAT claims we take $0.64 of every donated dollar and engage in telephone solicitations. False. Our contracts do not reflect that, nor do we utilize telephone solicitation. If you are already a client, then you can refer to your copy of our contract and you will see that NEP does not receive a 64 cent profit out of every dollar donated. In fact, we take the risk and pay all costs to launch a fundraising campaign up-front and do all the work. This includes production, postage, and all post production of packaging of souvenir items, thank-you letters, follow up, etc.

4. CLEAT alleges that we were cited in California for being unlicensed. False again. In 2010, there was indeed a clerical mistake on our part. We had regularly sent in our registration form and fee every year only to later learn our employee was sending the wrong form. Within a couple days, we filed the correct form and fees, which reinstated our registration. Naturally, we ceased fundraising efforts until the matter was cleared which was less than a week.

5. NEP has never been cited, censured, fined or otherwise accused of illegal or fraudulent activities.

Though we can understand and appreciate the passion for which Mr. Wilkison takes to protect his association, we believe that someone failed to thoroughly investigate our company and there was a rush to judgment on his part.

It has been our honor and privilege to help law enforcement improve their outreach to the public through integrated fundraising, website and social media development. NEP has been helping law enforcement associations raise funds for over 20 years and has never been cited, censured, fined or otherwise been accused of engaging in a pattern of illegal activity. It makes absolutely no sense for us to conduct any kind of fundraising illegally, or to do anything that would sully the reputations of our clients. Our company has been built on strong client relationships and longevity, and we pride ourselves on providing superior results and customer service. Our president has been in this industry well in excess of 30 years, and pioneered our current business model as a way to help STOP the abuses of other companies, which used “boiler room” telephone solicitations, which were fraught with unethical practices.

The article on the CLEAT website falsely portrays NEP as a rogue company operating outside of the law, and could irreparably damage NEP’s legitimate business interests. For this reason, we are reaching out to all of our clients and contacts in Texas so that we might alleviate any fears that the article may have caused. We have also contacted various news agencies who picked up the story so that they will understand the falsity of it, as well as contacting CLEAT directly to seek their assistance in mitigating any potential harm from these erroneous allegations. In the event that no cooperation is received from CLEAT, our General Counsel is currently examining legal remedies that are available to us. We are hopeful that litigation will not be necessary, but we also stand prepared to defend our good reputation.

It is our hope that this letter answers any questions resulting from CLEAT’s news release. The team at NEP is committed to helping law enforcement associations raise funds to support their essential, brave and invaluable community work.

Thank you for your time, should you have any questions, I encourage you to call our office directly, 949-270-6525.

In appreciation,

New Equity Productions
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