ACTION ALAMEDA News

In December of 2008, we reported on the lawsuit filed by the Alameda Education Foundation (AEF) against Count Me In, of Bellevue, Washington, who collected over a period of roughly two years and failed to remit more than $81,000 in donations to the AEF. Count Me In repaid about half of that amount and the AEF sued for the remainder. Subsequently, Count Me In filed for bankruptcy.

The bankruptcy case is still making its way through the courts, and in July, AEF’s lawyer filed a stay of proceedings until February 2010 on their lawsuit, pending resolution of the bankruptcy case. It’s likely that the bankruptcy plan will wipe out the claims of creditors like AEF, meaning that the roughly $40,000 in local donations to AEF will disappear.

In May of this year, Seattle newspapers reported that Terry Drayton, the former CEO of Count Me In “regained control” of the Count Me In assets, along with other investors, with a $200,000 bid in bankruptcy court in the name of Rainer Software. What does Rainer Software do? Basically the same thing that Count Me In did – online registration and payment collection for organizations such as sports camps, soccer, baseball and lacrosse leagues.

Action Alameda news contacted Page Barnes, the local attorney representing AEF on their lawsuit. We asked about the status of the case, and whether or not criminal proceedings would follow – did anybody call the police to report Count Me In’s apparent fraud? Barnes responded by e-mail:

Thank you for your inquiry. The case AEF filed in Alameda County Superior Court has been stayed as a matter of law until the bankruptcy proceedings in Seattle have concluded. It is likely that AEF’s claims against Count Me In will be discharged in the bankruptcy proceedings. The bankruptcy case is proceeding, but I would not venture a guess as to what the result will be or how long it will take for the bankruptcy case to be concluded.

With respect to your inquiry about possible criminal proceedings, I contacted both the US Attorney for the Western District of Washington and the Washington State Attorney General’s office at roughly the same time AEF filed its lawsuit in Alameda County. It is my understanding that other organizations affected by the collapse of Count Me In made similar complaints. Any decision to prosecute is, of course, left to the discretion of the authorities in Washington.

According to I.R.S. filings, for the Fiscal Year ended June 30, 2008, the AEF took in $86,736 in donations, and reported total revenue, including program service revenue and interest of $481,272.