EXCLUSIVE: A former charity
executive who helped expose a questionable $500,000 donation to the
Clinton Foundation is now being threatened by her old bosses with a
lawsuit seeking tens of thousands of dollars, FoxNews.com has learned.
Sue Veres Royal, former executive director at the Happy Hearts Fund, was initially quoted in a May 29
New York Times
article that said the charity lured Bill Clinton to a 2014 gala only
after offering a $500,000 donation to The Clinton Foundation. His office
previously had turned down the charity's invitations, but this time he
accepted; the accompanying donation amounted to almost a quarter of the
gala's net proceeds.
Veres Royal, who spoke to FoxNews.com about the fallout from that
report, is now embroiled in a legal battle with the charity. She filed a
formal complaint June 4 with the New York attorney general's Charities
Bureau, as the charity itself threatened her with legal action for
allegedly breaking her confidentiality agreement.
The Times report gave several behind-the-scenes details, including
that founder Petra Nemcova explicitly told Veres Royal to offer the
$500,000 "honorarium."
The Happy Hearts Fund’s legal team fired off a cease-and-desist order
to Veres Royal the same day the Times report was published. The charity
claimed she had breached a confidentiality agreement and gave “numerous
falsehoods, inaccuracies and disparaging statements” about the
organization to the Times. The letter demanded she no longer speak to
the media or else they would seek damages.
A Happy Hearts Fund spokesman said they are unable to discuss the
situation concerning Veres Royal as they, too, are bound by a
confidentiality agreement, but defended the 2014 award to Clinton.
"Because we know the strong impact of working together and because
the Happy Hearts Fund and the Clinton Foundation have a shared goal of
providing meaningful help to Haiti, we proposed a joint educational
project with the Clinton Foundation. Any suggestion that this joint
project is some kind of ‘honorarium’ or ‘fee’ is unequivocally false,"
the spokesman told FoxNews.com in a statement. According to the group,
such partnerships have allowed the charity to build 113 schools since
2006 in nine different countries, with more opening this month.
However, Veres Royal said she was appalled not only by the 2014
Clinton donation but by details she had not known before the Times
report was published -- most notably that the $500,000, which was
supposed to go to causes in the ravaged country of Haiti, still had not
been earmarked for any particular project by The Clinton Foundation.
“It’s disgusting to me that this organization is being used in this
way,” Veres Royal said. “I have been to Haiti three times. I’ve seen how
desperate the need is, and it’s disgusting to me that people are trying
to do good while they’re sitting on half-a-million dollars. I think
that’s a disservice to those people who have donated the money, and to
the people of Haiti.”
The threat of legal action comes as the Happy Hearts Fund tries to
limit the damage already caused to the organization's reputation after
the revelations. Veres Royal said two conservative-leaning board members
already have resigned after finding out about the exorbitant donation
which, to Veres Royal’s knowledge, was never voted on by the board.
'It’s disgusting to me that people are trying to do good while they’re sitting on half-a-million dollars.'
- Sue Veres Royal
Veres Royal responded to the Happy Hearts Fund legal demand by
claiming she was not in breach of her confidentiality agreement. She
says she was not the source of the report, but was merely quoted on what
she called a matter of public interest. It was at that point she then
filed the formal complaint about HHF’s actions with the New York
attorney general.
CLICK HERE TO READ THE COMPLAINT.
In the complaint, Veres Royal alleges the gala was used to shore up
the rocky political fortunes of Haitian President Michel Martelly, a
close ally and friend of Prime Minister Laurent Lamothe, who was then
dating Nemcova, a Czech model.
Martelly was at that time dealing with a number of corruption
allegations, specifically over the location of education funds, Veres
Royal said.
The complaint claims that Nemcova, who was an ambassador at-large for
Haiti, “specifically instructed Veres Royal to ‘find a reason’” to
honor Martelly and then pushed to get Clinton’s staff to agree for
Martelly to be honored as well. Consequently, she claims, a “totally
concocted” award -- for “Leadership in Education” -- was also presented
to Martelly at the Clinton gala.
Bill and Hillary Clinton -- now a Democratic presidential candidate
-- have been heavily involved in the reconstruction of Haiti after the
2010 earthquake, though their role in the country’s recovery has come
under scrutiny amid accusations of running a pay-to-play operation with
Haitian reconstruction.
The Clinton Foundation did not respond to FoxNews.com’s request for comment.
Veres Royal’s complaint also alleges improper financial oversight and gross misrepresentation to the public about fundraising.
After she filed the complaint, HHF sent an email, seen by
FoxNews.com, arguing again that Veres Royal was breaching a
confidentiality agreement, and that HHF was entitled to over $30,000 in
payments Veres Royal received as part of the agreement, as well as
unspecified “injunctive relief and monetary damages."
Despite being under fire, and not having an attorney of her own,
Veres Royal says she is going to keep pursuing her complaint, and will
not back down under the threat of legal action:
“Although it’s been nerve-wracking to me, I feel it’s my ethical responsibility to do so.”