By PAUL ELIAS
The charity, commonly known as HHV, was launched in 1971 to serve hospitalized Vietnam War veterans.
SAN FRANCISCO -- A California veteran's charity that supplies arts and crafts to hospitalized servicemen and women agreed Friday to pay $2.45 million and purge its leadership to settle a lawsuit filed by the state alleging misuse of funds.
State Attorney General Kamala Harris filed the suit in Riverside County last year after Legislative hearings suggested leaders of the Temecula-based Help Hospitalized Veterans were paying executives too much and spending donated funds on golf membership, a condominium and other items, with little or no benefit to the charity's one function of assisting hospitalized veterans.
Harris said the estate of former group President Roger Chapin will pay back the charity $2 million in excessive salary he collected over several years. Chapin died in August.
In addition, a company that insured officers and directors also agreed to pay the charity $450,000.
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$12 billion given to veterans charities but not for veterans