P. 1
Kirsten Hamling Arrest Warrant Affidavit

Kirsten Hamling Arrest Warrant Affidavit

|Views: 4,551|Likes:
Published by Nick

More info:

Categories:Types, Legal forms
Published by: Nick on Jun 13, 2012
Copyright:Attribution Non-commercial


Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less





~ty COUli,City and County of Denver, Colorado I ~~~d:<;ey-Flanigan Courthouse, Room 160 520 W.

Colfax Ave. Denver, CO 80204 Plaintiff: The People of the State of Colorado

JUN J J 2012

Defendant: KIRSTEN HAMLING (DOB: 7118/1964)W/F, 5'6", 1251bs, BLONDE/BLUE A



Case Number: Div.: Criminal SUPPORTING




I, NORMAN F. VIALPANDO, of lawful age do swear upon my oath to the facts set forth below and on 48 continuation page(s): Your affiant, NORMAN F. VIALPANDO, an investigator for the Denver District Attorney's Office, Economic Crime Unit, was assigned to investigate allegations of Theft in violation of 184-401(1),(4), C.R.S., Theft in violation of 18-4-401(1),(4), eR.S., Theft in violation of 18-4401(1),(4), eRS., Theft in violation of 18-4-401(1),(4), C.RS., Theft in violation of 18-4401(1),(4), C.R.S., Theft in violation of 18-4-401(1),(4), C.RS., Theft in violation of 18-4401 (1 ),(4), C.R.S., Theft in violation of 18-4-401 (l ),(4), C.RS., Theft in violation of 18-4401(1),(4), eR.S., Theft in violation of 18-4-401 (1),(4), C.RS., Theft in violation of 18-4401(1),(4), C.R.S., Theft in violation of 18-4-401(1),(4), C.R.S., Theft in violation of 18-4401(1),(4), eR.S., Attempt To Influence A Public Servant in violation of 18-8-306, C.R.S., Charitable Fraud in violation of 6-16-111 (1)(f),(2), C.R.S., Charitable Fraud in violation of 6-16111(l)(g),(2), C.R.S., Charitable Fraud - Three Contributions in violation of 6-16-1 11(1)(e),(3), C.R.S., Filing A False Tax Return in violation of 39-21-118(4), C.R.S., Filing A False Tax Return in violation of 39-21-118(4), eR.S., Filing A False Tax Return in violation of 39-21118(4), C.RS., Failure To File Return Or Pay Tax in violation of 39-21-118(3), eR.S., Failure To File Return Or Pay Tax in violationof39-21-118(3), C.R.S. and Charitable Fraud in violation of 6-16-1 11(1)(e),(3), C.R.S. by KIRSTEN HAMLING against STATE OF COLORADO, KARIN PALMER, KRlSTEN PORLY, PERRY PALMER, CHILDREN'S HOSPITAL FOUNDATION and FIRED UP FOR KIDS CHARITY. Your affiant a Criminal Investigator with the Denver District Attorney's Office Economic Crime Unit was assigned to investigate a complaint received from Perry Palmer, Volunteer on the Executive Committee of the Fired Up for Kids, Inc. charity located at 620 16th Street, Suite 200., in the City and County of Denver.

Page 2

As an investigator your affiant received nUl11CfOUS documents with the initial complaint. The following is a summary of the information obtained in the original case complaint as well as information obtained in subsequent interviews and investigation: In September 2011, Keely Rubis (Spencer) and Parry Palmer filed complaints with the Denver District Attorney's Office in reference to a theft by Kirsten Hamling, Founder of Fired Up For Kids, Inc. (FUFK) Ms. Rubis is a former employee of Traction Communication and helped run FUFK. Mr. Palmer is a volunteer Executive Committee (EC) member for FUFK. For further information, both complaints point to the report completed by Forensic Accountant, Charlotte J. Bell Cosgrove dated September 25,201 L According to the report, Ms. Cosgrove is a Certified Fraud Examiner (CFE) and a Certified Public Accountant (CPA). She completed a 4 page report documenting her findings. Below is a summary of her report: "Dear Sirs and Madame:" "You have requested that I look into certain allegations of misappropriation of funds, possible comingling of funds and other issues with respect to the Founder and former president of Fired Up For Kids, Inc. Ihave not received remuneration for this investigation. This is a preliminary report and will be revised/amended as more facts become known."

"Sometime in 2004, Kirsten Hamling created a non-profit corporation Fired Up For Kids, Inc. (hereinafter referred to as "FUPK"). The pm-pose of the organization was to raise funds for the benefit of Children's Hospital foundation, more specifically, the burn unit." "In order to raise money, FUPK got volunteer firemen to pose as models for calendars. The calendars were sold, the proceeds of which were to be turned over to Children's Hospital." "Children's Hospital has acknowledged the following receipts:" "2004 $10,821.63" "2005 25,413.23" "2006 34,084.72" "2007 35,945.87" "2008 42,488.78" "2009 13,772.18" "2010 7,863.06" "Total $170,389.47"

Page 3 "Generally, there are two main fund raising, events: A Judging event in April of each year and Debut Event in August of each year. The firefighters also sell calendars and participate in calendar signing events throughout each year. Firefighters are from:" "Arvada "Boulder "Brighton "Colorado Springs "Denver "Grand Junction Lakewood" Morrison" Parker" Superior" Thornton" Westminster"

"Sponsors of the events receive a packet (refer to Tab A) that states the organization is a nonprofit organization that produces the Colorado Firefighter Calendar. It also states that the proceeds benefit the Children's Hospital bum center. Further the material, as well as the web site, state that the organization has raised $400,000 for Children's Hospital." "At all times relative to this corporation, FUFK has represented itself as a Non-profit Corporation. It filed Articles of Incorporation and other paperwork with the Secretary of State, categorizing itself as a Non-profit corporation. Please refer to FUFK web site: Fired Up For Kinds.org; excerpted copies are located at Tab B. According to former employees of Traction, Fired Up For Kids applied for but never received a 501 C(iii) designation from the Internal Revenue Service. Apparently several applications were prepared and submitted, but the designation was denied. It has also been alleged that the applications contained false information concerning employees of Fired Up For Kids. At no time did Kirsten admit that Fired Up For Kids was not a §501C(iii) Nonprofit Organization as designated by the IRS."

"On or about August 27, 2011, former employees of Traction, Kirsten Hamling's company, confronted Kirsten Hamling with evidence that some of the receipts raised for the benefit of Children's Hospital had been diverted to the benefit of Kirsten Hamling. Ms. Hamling denied these allegations. Following several events over this weekend, former employees once again confronted Ms. Hamling. On or about August 30, 2011, Ms. Hamling admitted to co-mingling funds from FUFK with her own or those of her corporation and promised to "make it right with Children's". " "Apparently, it was not "made right" with the hospital, because on September 9,2011, Children's Hospital Colorado Foundation wrote a letter to Kirsten Hamling requesting:"

Page 4 1. "The name Children's Hospital Colorado or Children's Hospital Colorado Foundation not be used in any fund raising activities or by Fired Up for Kinds, and" 2. "Independent third-party verification of the financial status of the events for the year along with how much is being sent to Children's Hospital Colorado foundation. Lastly, they requested" 3. "An understanding of the organizational structure of Fired Up For Kids and to be comfortable with the oversight bodies of the organization. Please refer to Tab C attached as part of this report." "Following this letter, on September 21, 2011, the Executive Committee for Fired Up For Kids sent an email to Kirsten Hamling requesting her resignation. Please refer to Tab D. That resignation was received on September 21, 2011. Please refer to Tab E. The letter from the Executive Committee requested that Kirsten turn over all bank records, bank accounts, rights to the name, inventory etc. To date, nothing has been received. Further, on Friday, September 23, 2011, we requested an interview with Kirsten to conclude this phase of the fact finding mission. To date, Ms. Hamling's attorney has not responded."

"Beginning as early as 2007, there is evidence that indicates the bank account for Fired Up For Kids was used by Ms. Hamling to pay for personal Expenses. Weare in receipt of the following bank statements and have summed the items we initially consider personal expenses. These expenses range from credit card payments, purchases of services (such as spa and nail establishments), monthly parking fees and airline tickets to California. Please refer to Tab F for copies." "February 2007 $444.15" "March 2007 "July 2007 "November 2007 "February 2008 "July2008 "September 2008 "May 2009 "November 2009 "May 2010

4,988.27" 303.52" 1,637.41" 1,121.68" 1,899.85" 1,949.50" 2,401.21 " 4,266.91 " 7,422.22" 5 676.96"

I "Total

"JuI Y 2010


I $32,111.68"

Page 5 "There is no indication that the funds described above were reimbursed by Ms. Hamling to the FUFK Operating Account." "We are also in receipt of the excel spreadsheet presented to the Executive Committee as an accounting of the calendar sales for 2011 (2012 calendars) Judging Event in April 2011 and Debut Event in August 2011. Please refer to Tab G. Also on this schedule are the expenses associated with each event. In total, the spreadsheet shows the following:" "Calendar Sales "Calendar Signings "Judging "Debut "Gross Receipts "Total Expenses "Net Profit $6,892" 5,443" 44,795" 12,533" 69,663" 59,658" $10,005"

"No donations have been received by Children's Hospital Colorado Foundation for 2011." "If this is truly an accounting of the receipts and disbursements for 2012, then the expenses have grown substantially in relation to the ticket sales experienced in previous years. The validity and accuracy of this accounting for the year is in question. .We know that a check in the amount of $300.00 was donated in an event on Valentine's Day, 2012 for $300, yet this amount does not show on the report." "Based on ticket sales activity and attendance at the various events, it is our estimate that the net proceeds that Children's Hospital Colorado Foundation should have received is closer to:" "2009 - $43,770" "2010 - $47,772" "2011 - $70,000"

"Based on the information we have and interviews with the former employee and members of the Executive Committee, if charged and convicted, Kirsten Hamling could be found guilty of various state and federal law violations." "Ms. Hamling, at the very least, misrepresented the true status of Fired Up For Kids, inducing persons and businesses to donate funds to her corporation leading them to believe that the contribution(s) would qualify as a tax deductible donation. She misrepresented to firefighters

. Page 6 throughout the state that they were posing on calendars that would be sold to the public at large and the proceeds therefrom would benefit the Children's Hospital burn unit, These firefighters in tum sold calendars in their local communities not knowing that the proceeds may not eventually find their way to Children's Hospital. All were duped by Ms. Hamling." "If the comingling andlor misappropriation of funds is proven correct, and Ms. Hamling is found guilty, then Children's Hospital has been damaged, not only in the public eye, but also in actual damages between $ 33,111 and $150,000." "This is a preliminary report. As more evidence is presented, it will be revised accordingly." "Sincerely yours," "Charlotte J. Bell Cosgrove" "Certified Fraud Examiner" "Certified Public Accountant" The tabbed items referred to in the above report and not included with this affidavit, but will be available for discovery. Your affiant reviewed the tabs and confirmed the following information: • TabA o o This form is 2 pages long and gives background information on FUFK. The first sentence in paragraph one states, "Fired Up For Kids is a Denver-based nonprofit organization that creates and produces the Colorado Firefighter Calendar" . Paragraph two states the following: • "Fired Up For Kids donates all proceeds received from special events and sales of the Colorado Firefighter Calendar to The Children's Hospital Bum Center. The burn center is committed to providing the highest standard of bum care to neonates, infants, children, and adolescents up to 21 years of ages in the rocky Mountain region. To date, Fired up for Kids has raised more than $375,000 for patient care, education, equipment and research. For more information about The Children's Hospital Bum Center, visit www.tchden.org. Since 2004, Fired Up for Kids has collaborated with Colorado firefighters to raise support and awareness for The Children's


Page 7 Hospital Burn Center. Last year, the calendar raised $55,000."

Under the section titled, "Fired Up For Kids FAQ", the page points out that FUFK has raised "Almost $400,000" to date. Under this same section, the page points out that the organization is headed by "Kirsten Hamling (the Founder of Fired Up For Kids.)", • Also, Keely Spencer, Angela Kmezich and the Executive Committee volunteers oversee specific areas.



The final paragraph states, "The nonprofit organization has been formed to work exclusively with The Children's Hospital of Denver to produce, design; promote and sell the Colorado Firefighter Calendar."

TabB o This consists of 7 pages of printouts from the Fired Up For Kids website (http://firedupforkids,org) dated "9/22/11 ". Much of the information on the website is repeating the information found forms from Tab A. Page 2 of 7 states that more than $375,000 was raised to date by FUFK. Page 3 of 7 states, "Fired Up For Kids donates all proceeds received from special events and sales of The Colorado Firefighter Calendar to The Children's Hospital Bum Center". Page 6 of 7 states, "All of the calendar's net proceeds will go directly to The Children's Hospital Bum Center in Denver." The last paragraph on page 7 of 7 states, "Since 2004, the Fired Up For Kids Firefighter Calendar has raised more than $400,000 for the Children's Bum Program."


o o



Tab C o This is a copy of a letter written by Steven Winesett, President and CEO of Children's Hospital Colorado Foundation to Kirsten Hamling. • o The letter is dated September 9, 2011.

The letter mentions a meeting the day before with Ms. Hamling and Leslie McKay,

Page 8 where they discussed "inappropriate activity related to the finances of the Fired Up For Kids", o The letter also mentions the allegationthat employee of the Foundation. Paragraph 3 of the letter states the following: • "We greatly value our relationship with Fired Up For Kids and with you personally. However, given that the appearance of impropriety has risen to the level it has, we have to ask that this be addressed. Until it is fully addressed and independently verified to our satisfaction, we ask that you refrain from using the Children's Hospital Colorado or Children's Hospital Colorado Foundation name in any and all fundraising activities. The exception to this is the event to be held today. We ask that your refrain from using our name after today's event." Ms. Hamling forged an e-mail from


TabD o This is a copy of a letter written to Kirsten Hamling by Perry Palmer on September 21,2011. Paragraph 1 states the following: • "As per our conversation Saturday, September 18th, I agreed to follow up with you regarding the Fired Up For Kids (FUFK) Executive Committee meeting which occurred on Sunday, September 18th at 5pm. This meeting was held with representatives from the Children's Hospital Foundation; Leslie McKay and Cary Larger in attendance. The meeting was called to discuss sensitive information, which includes financial accounting practices for FUFK, the resignation of Keely Spencer and Angela Kmezich, correspondence between you and Leslie McKay with the Children's Hospital Foundation and the future of Fired Up For Kids."



Paragraph 3 states the following: • "During our discussion on Saturday, you admitted to co-mingling financial affairs of Traction Communications and personal finances with the FUFK's Wells Fargo bank account. Based on the seriousness of the situation and the information received from you, the Executive Committee formally requests your immediate resignation from FUFK's. We require your resignation letter to be sent to me by end of business today, Wednesday, September 21,

Page 9 The Executive Committee will be assuming immediate control and requests that you initiate steps to turn over operational control and all corporate assets by Friday, September 23, 2011, including bank accounts and statements, FUFK logo, website, Facebook administration, FUFK copy rights inventory, graphics, electronic files, and cash remaining in any and all accounts and checks. This list is not meant to be all-inclusive. We also need accounting and financial information, and monies received from the organizations' most recent event, the Chili Cook-off which occurred On Friday, September 9, 2011."


Tab E o This is a 1 page resignation letter from Kirsten Hamling to Perry Palmer on September 21 , 2001.

The letter states, "Please accept this letter as my formal resignation from Fired Up for Kids".


Tab F o These are copies of Wells Fargo Bank Statements for "Fired Up For Kids Operating Account", # 1689928 909. • Statement End Dates •

02/28/07 03/31/07. o Missing page 3-4

• • • • • •

07/31/07 11/30107 02/29/08 07/31/08 09/30/08

• May 1, 2009-May 31, 2009

Page 10 • • • • Tab G o Miscellaneous Documents • A copy of an e-mail from Kirsten Hamling to members of the Executive Committee and Angela Kmezich dated September 12, 2011 at 9:24 P.M. • A summary of the e-mail states, "I don't have everyone's cell #, but for those of you that I do, you either received a text or call from me today. I'm leaving tomorrow for LA and am getting on a plane to Mexico to do a mission with a new investor in the company I started early this year, CauseBeats. I'll be back next week." "At the cook off on Friday, there were questions re expenses and $$ raised. Attached will give you a good overview of where we are. You'll notice that there are two checks that been paid to Children's. They also received $9110 in income from the judging event." November I, 2009-November 30,2009 May 1, 2010-May31, 2010 July 1, 2010-July 31,2010


A Copyof a FUFK 2011 sales spreadsheet for January thru August. • The bottom line showed, PROFIT" of$10,615. "YTD OPERA TIONAL FIRED UP


A copy of check #1884 made payable to FUFK from Zolarium, LLC in the amount of$300.00. The check is dated February 14, 2011.


On November 9, 2011, your affiant spoke with Steve Winesett, President and CEO of Children's Hospital Colorado Foundation about a letter he wrote on September 9, 2011 to Ms. Hamling. He stated that he first became aware of the allegations of impropriety at FUFK, when his office received a couple of phone calls a week or so before the letter was written and people began to resign from the committee. Next, his colleague, Leslie McKay received a letter postmarked September 8th from Keely Rubis and a copy of a highlighted bank statement from FUFK. He stated that because there was an appearance of impropriety, they decided to write a letter to FUFK requesting they don't use their name until this was cleared up. He confirmed that proceeds from FUFK have diminished over the last few years but he pointed out a lot of their fund raising has

Page 11 declined over the last few years as well, Mr. Winesett wanted to point out that Ms. Hamling had written an e-mail to her committee and represented that it was from his colleague, Leslie McKay. He stated that Ms. McKay called her on it and Ms. Hamling wrote her an e-mail admitting she had done it and stated that she was sony and wanted to gain back her trust. On the same day, Ms. Hamling's attorney's released a statement to the media. The letter states the following: "Kirsten Hamling is the sole owner of the for-profit company, Fired Up For Kids, Inc. This company is not a charity and is not designated as a not-for-profit organization through The Children's Hospital or the Federal Government. At no time did Fired Up For Kids, Inc. possess the legal status of being a 501 (c)(3) company. Ms. Hamling individually created Fired Up For Kids, Inc., incorporated the private company and managed the operations since its inception." "Ms. Hamling graciously donated money from Fired Up For Kids, Inc., to The Children's Hospital, but in no way was contractually obligated to donate all proceeds to the Children's Hospital. In fact, pursuant to The Children's Hospital Foundation Fundraising Event Approval FOlID,Ms. Hamling's donations far exceeded those agreed to by The Children's Hospital." "Ms. Hamling abided by all the terms of the agreement with The Children's Hospital, At no time did she mismanage funds or withhold funds from The Children's Hospital and vehemently denies all allegations to the contrary." "The Children's at no time maintained any legal ownership in Fired Up For Kids, Inc. nor possessed any intellectual property rights in her company, Fired Up For Kids, Inc." "Ms. Hamling was named as one of Colorado's Most Outstanding Women in Business by the Denver Business Joumal in 2009. She served as a board director for Outward Bound Denver from 2008 to 2011 and chaired its marketing committee. In 2008, Ms. Hamling served as the co-chair for the Colorado Children's Hospital Gala and launched a "Pay It Forward" program that allowed gala attendees to purchase auction items to benefit Hospital patients. In 2008, Ms. Hamling was part of a team that launched the Mile High Parents program to encourage Denver Public School parents to spend 5,280 minutes a school year (30 minutes a day) to engage with their children and support their educational development. In 2007, Ms. Hamling served as the event chair for The Denver Zoo's annual event "Do at the Zoo" to generate more than 1.2 million to support the Asian Tropics exhibit." On November 10, 2011, your affiant spoke with Perry Palmer, volunteer member of the Executive Committee (EC) for Fired Up For Kids, Inc. Mr. Palmer explained he has been part of the EC for

Page 12 approximately 5 years. The EC is comprised of volunteers who act as an advisory panel to Ms. Hamling who is the "sole-proprietor" ofFUFK. He stated that none of the members of the EC had any dealings with the financial affairs of FUFK. He stated the committee was hand-picked by Ms. Hamling and there was no formal process of nominations or anything like that. He also confirmed that there were no formal positions on the Ee, like President or Treasurer. Mr. Palmer stated there were approximately twelve members on the Ee and they met once a month at Ms. Hamling's office located at 620 16th St., Suite 200, Denver, CO 80202. The office belonged to Ms. Hamling's other business, "Traction". During those monthly meetings, he stated that members of the Ee and Ms. Hamling would discuss special events and the two fund raisers held each year. The first fund raiser was the Judging event and the second was the Calendar Debut. Throughout the year, there was also multiple calendar signings as well. The Judging event was when the firefighters came out and competed to be in the Fired Up For Kids calendar. This event was held every year at the EXDO Event Center located at 1399 35th Street Denver, CO 80205. Mr. Palmer stated the last two Judging events attracted over 1000 people. He stated there are typically 12 -15 celebrity judges that help pick the winners and it usually occurs around April of each year. The second event is the Debut Party, which is used to introduce the new calendars to the public, Mr. Palmer recommended your affiant speak to another member of the Ee, Barbara Brooks, He stated Barbara was with Kirsten from the beginning and she could answer additional questions. Mr. Palmer explained there were never any agendas at these monthly meeting and no notes were ever taken. Your affiant asked Mr. Palmer to explain what happened after the Calendar Debut which made people believe that money was being stolen. He stated that Children's Hospital had contacted Keely Rubis who is now a former employee of Ms. Hamling's business Traction. Children's Hospital wanted to know why there had been a "steep decline" in contributions from FUFK. He stated that Ms. Rubis spoke to Ms. Hamling about the call and she told him that Ms. Hamling just "brushed it off'. Mr. Palmer stated that this got Ms. Rubis really curious, so she started looking around and came across the bank statements for FUFK in the office. He stated Ms. Rubis took the statements to another Traction employee, Angela Kmezich and asked her if she had ever seen these before. He stated both Ms. Rubis and Ms. Kmezich confronted Ms. Hamling about the commingling of accounts involving FUFK. Mr. Palmer stated at first, Ms. Hamling denied the allegations but came back a couple of days later and confessed to commingling the accounts. He stated Ms. Hamling explained to them that she

Page 13 was going to take the appropriate steps to rectify the problem in the near future. He stated this went on for a couple of weeks to a month before the}' confronted her again. 1vls. Hamling told them that she was still working on it. He stated this finally came to a head and the girls told her the money was supposed to be going to Children's Hospital-Bum Center and if she wasn't going to make it right they were going to resign. Mr. Palmer confirmed that Ms. Rubis and Ms. Kmezioh were employees of Traction and were told that any work they did for FUFK had to be done on their own time. He confirmed that he and his wife have been part of EC for FUFK for approximately 5-years and always thought it was a nonprofit business. Mr. Palmer stated he started to question this concept back in June or July of this year. He stated he had a mend whose great uncle.left 700 million dollars to a foundation when he died and had to spend a certain amount of money each quarter. He stated FUFK would be a great benefactor so he brought it up to Ms. Hamling. He stated the only requirement was they wanted to see bank statements and corporate books showing them they were a legitimate company. He stated his friend called him later and wanted to know why Ms. Hamling wasn't returning his phone calls and why was he getting the runaround. He stated his wife Karin Palmer asked Kirstenwhy she wasn't responding to their mend. He stated Kristen admitted to his wife that FUFK was set up as a forprofit business rather than non-profit. He stated it was at this time, he and his wife realized FUFK wasn't set up as a 501-3c business. Mr. Palmer stated later on, he asked Ms. Hamling what bookkeeping software she was using to keep the books for FUFK; he stated she told him "Excel Spreadsheet". Your affiant asked him if he knew if FUFK ever filed taxes and if they had a bookkeeper. He stated that Ms. Rubis would know, but she was out of town until Thanksgiving. Mr. Palmer stated that Ms. Rubis has information related to Ms. Hamling filing for a 501-3c status with the IRS and being denied, but he didn't know the reason for the denial, He stated that when all this started another EC member, Barbara Brooks called a legal friend of hers who recommended they contact a forensic accountant (Charlotte Bell Cosgrove) to investigate the matter further. Mr. Palmer stated after the chili-cook off in September, Ms. Hamling agreed to meet with him to discuss all the allegations at a Starbucks near Cherry Creek. During this meeting he stated Ms. Hamling started "balling" and she admitted commingling money from FUFK. He stated she told him she wanted to make everything right and agreed to transfer everything over to him so someone else could "pick it up and run with it".

Page 14 Mr. Palmer confirmed that there was a forged e-mail from Children's Hospital but didn't have a copy of it. His understanding was Ms. Hamling had written an e.... mail that appeared to have come from Leslie McKay from Children's Hospital to herself. He thinks the e-mails was "badgering" Ms. Kmezich about her actions but didn't know the specifics. He did state Ms. Hamling had shared it with Ms. Kmezich and Ms. Rubis. Mr. Palmer stated when all this was going down, Kirsten started asking questions about the amount of calendar sales. He thought this was odd, because she had never shown attention to detail like that before. He stated Ms. Hamling had an iPad that she kept a lot of her business records on for the last month or two.

Mr. Palmer stated even though the FUFK's bank statements had Ms. Hamling's home address on
them, he believed the business was run out of Traction's business office located at 620 16th St., Suite 200 Denver, CO 80202. He stated that he was told by a reporter that the phone number for Traction has been disconnected and it appears she has moved out of this location but he didn't know for sure. Mr. Palmer stated many of the calendars are currently at Children's Hospital in boxes but he believes there are still some at the Traction office. He stated that calendars are stilling be sold on Amazon and the Tattered Cover book store. Mr. Palmer stated a "Seize and Desist Order" was sent to Ms. Hamling's attorney but the website continues to operate as usuaL He confirmed there was no contract-structure with Children's Hospital and there was no set amount of money that was supposed to be donated on an annual basis.

Mr. Palmer stated he has been told that since this occurred, Ms. Hamling had been updating the
information on FUFK website. He stated that manipulated a lot of the language. For example she now states that FUFK donates a portion of the proceeds rather than "all of the proceeds". He states that he knows of a website that tracks changes made on websites and he agreed to forward that to me. A short time later Mr. Palmer sent me the following link:
http://www .archive.org/web/web. php.

On the same day, your affiant spoke with Lisa Tennyson, Investigation Specialist with Wells Fargo Bank. She confirmed that the account #168-9928909 belonged to Fired Up for Kids and was opened on August 25, 2004. The account is currently opened with a balance of$1,300.00 and the only authorized signer is Kirsten Hamling. The Tax ID # associated to this account is

Page 15 201532060. Ms. Tennyson wasn't able to tell if this account was set up for a non-profit business or not. She did state there was still activity on this account. She pointed out the debit card associated to this account was used to purchase something from Amazon today. After our conversation, Ms. Tennyson sent your affiant an e-mail stating there was a saving account associated to the Fired Up For Kids as well. This account number was 791-3747718 and the current balance was a little over $900.00. She also stated this account had little activity on it. On the same day, your affiant spoke with Cary larger, Sr. Vice President with Children's Hospital Colorado Foundation. She informed your affiant her office was in the process of putting together a time-line of what occurred to assist your affiant. She told your affiant they were hoping to have it completed by sometime next week. Ms. Larger stated she remembered Ms. McKay informing her something was amiss at Fired Up For Kids, Inc. She stated she told her Ms. Kmezich and Ms. Rubis who were employees of Traction and sat on the committee for FUFK had resigned. She stated Ms. Kmezich had called Ms. McKay and told her she had found bank statements that showed misuse of funds by Ms. Hamling. It was at this point, she and Ms. McKay shared the information they had gathered with their boss, Steve Winesett. Ms. Larger stated Ms. Hamling came in a short time later to meet with Ms. McKay but stated your . affiant would have to talk with her to get the details. After that meeting, she stated they reconvened with Mr. Winesett and the result of that meeting was the letter dated September 9, 201L On November 14, 2011, your affiant spoke with Michelle Sawyer by telephone. She confirmed that she volunteered for FUFK since April of this year and became an Executive Committee (EC) Member at a later time. She stated she assisted FUFK by selling t-shirts at the following fund raisers: a. Judging Event b. Debut Gala c. Chili cook-off. Ms. Sawyer stated she wasn't aware of any allegations until a special meeting of the Ee was called by Mr. Palmer. During this meeting she stated Mr. Palmer advised them Ms. Kmezich and

Page 16 Ms. Rubis had resigned from Traction and explained to them why. Ms. Sawyer stated she had no first-hand knowledge of any of the allegations involving Ms. Hamling. On November 15, 2011, your affiant spoke with Kristen Pohly who is an Executive Committee Member (EC) for Fired Up for Kids, Inc. Ms. Pohly stated she became involved with FUFK in April of this year. She stated she owned a floral design business and was introduced to Ms. Hamling by a high school girlfriend, Keely Rubis who worked at Traction. Ms. Pohly stated she was brought on to do floral arrangements for the Judging Event in April of this year. After this event, Ms. Hamling wanted her to be more involved so she asked her to join the EC. She stated she began attending monthly EC meetings which were held at the Traction offices. She stated the meetings were fun but they were never organized. She thought it was weird because there was never an agenda and none of the EC members had any assigned roles. She described it as a "free for all" and stated they would have wine and snacks and the meeting lasted 60-90 minutes long. She stated the meetings were typically on a Tuesday night at approximately 1800 hours and there would be 10-12, EC members present. After the Judging Event in April of this year, Ms. Pohly stated there was a lot of praise from Ms. Hamling about this being the most successful event they ever had. She stated Ms. Hamling did explain how much money was spent on the event (hard costs) and how much was made. She stated information was presented to them in a "nonchalant" form of way. Ms. Pohly stated the remembered they (FUFK) had grossed nearly 50~55k onthe Judging Event alone, She thinks after all of the bills were paid; there should've been a profit of approximately 30k left over. It was her impression that the money left over was the amount that was going to be donated to Children's Hospital. Ms. Pohly stated this has been hard for her to "swallow". She stated she just started doing her floral business full time, this past year. She stated she only charged what the wholesale cost was, for the flowers. She stated she didn't charge for the setup, glassware or her time. She stated Ms. Rubis was in charge of the decor and vendors and she was never allowed to charge over $150.00 for her services. She stated she submitted a "line-item invoice" to Ms. Rubis, in order to get reimbursed. She stated it took approximately one month before she received payment for her services. Ms. Pohly stated because they were an all-volunteer executive committee and they didn't have a treasurer, they never questioned the finances. She stated she assumed an outside accounting agency was taking care of everything.

Page 17 Ms. Pohly stated there were quite a few events leading up to the Debut Event in August of this year. She described it as interesting, because it was like whoever could show up for these events, showed up and there was no structure. Shortly after the Debut Event, she stated she went out for drinks with Ms. Rubis and she told her everything that was going on. She stated Ms. Rubis told her about the bank statements and she was probably going to leave the company. She stated afterwards, she kept quiet because she didn't want to be the person who broke everything. Ms. Pohly stated the EC was supposed to have a meeting on September 12th or 13th, but Hamling cancelled it at the last minute and sent a "weird spreadsheet of financials" via e-mail. The e-mail indi cated she had a business trip in Mexico and here were some financial information in case anyone was interested. She stated she played dumb and asked Ms. Hamling why she was going to Mexico all of a sudden. This was done via an e-mail reply and she copied the rest of the EC members as well. A few days prior to this, Ms. Pohly stated she was aware that Children's Hospital had sent a letter to FUFK asking them to stop selling calendar. She stated Ms. Hamling was "trying to save her butt a little bit", by trying not to make anyone on the EC suspicion of what was going on. She stated she reviewed the spreadsheet provided by Ms. Hamling and found it didn't make sense. She stated it was done on an Excel Spreadsheet and not on a typical accounting software program like Quicklsooks. She stated this was an "extreme red flag" because she already knew what Ms. Rubis had told her during their private meeting. During the entire time (7 months), Ms. Pohly believed FUFK was a non-profit organization and all of the profits went to the Children's Hospital Burn Unit. She stated she believed FUFK was a valid 501 c3 charity and advertised it that way for all of the events she was involved with, including the Chili Cook Off that occurred a few days before Ms. Hamling sent her e-mail cancelling the meeting. She stated that's how Ms. Hamling "made it out to be" to them, including all of the firefighters. She stated the fire fighters would tell people as "part of their spiel" that the money was going to Children's Hospital and you could write it off on your taxes. Ms. Pohly stated she and EC look back now and notice all kinds of red flags they missed. For example, at the Chili Cook Off, they were very busy and no receipts were being handed out to customers who had purchased something. She stated prior to the Chili Cook Off, Ms. Rubis and Ms. Kmezich had already resigned. So once all the sales were completed the cash box was given to Ms. Hamling, where before she would've given it to Ms. Rubis and/or Ms. Kmezich. During the Chili Cook Off, Ms. Pohly stated they had three people working the table to sell tshirts and calendars. She stated she would make sure the money was exchanged with the girls

Page 18 working the calendar line before giving out the t-shirt, But, at the end of the day all of the money went to Ms. Hamling. She stated that Ms. Hamling rang up all of the credit card. transactions using her il'ad and a credit card skimmer that was attached to it. Ms. Pohly stated the EC still has checks that were written out to FUFK but they're waiting to see what happens before depositing them. Later that evening at the Gala, Ms. Pohly stated Ms. Hamling told her and two other volunteers that FUFK had made 5k during the Chili Cook Off earlier that day. She stated Ms. Hamling knew at the Chili Cook Off, "that things were going down", so she was surprised with Ms. Hamling shared they had made 5k earlier that day. The other two people were, Crystal Sullings and Rachael Caballero. During the Gala, Ms. Pohly stated that Ms. Hamling was "like this weird nervous wreck". Because she knew before the event about the alleged commingling of funds she thought it was funny to interact with Ms. Hamling. She stated this was another reason why she "probed and prodded" about how much money they made that day because she knew they did really well. She stated they had a line of customers the entire day. She stated girls were buying them for Christmas presents and as much as 6 calendars at a time for $120.00. Some were buying a case to sell at their offices. Throughout the year, Ms. Pohly stated they had numerous other small events that were associated with other groups. She stated they had a table ata golf tournament, a car show, celebrity waiter event and the Chili Cook Off. She confirmed that none of the firefighters were paid any money and they donated all of their time as well as the EC members. On November 15, 2011, your affiant spoke with Angela Kmezich who was a former employee at Traction Communication and assisted with Fired Up for Kids, Inc. Ms. Kmezich started working for Traction on October of 2009 as an un-paid intern and then was hired on full-time in January 2010. Her job at Traction was to take care of FUFK which described as "Kirsten's non-profit baby". She and Ms. Rubis were responsible for setting up all of the signing events; make sure the firefighters showed up. Together they helped plan all the big special events and help set up the Executive Committee (EC) meetings. The two of them were responsible for everything that had to do with FUFK, while working for Traction. On August 28, 2011, Ms. Kmezich and Ms. Rubis resigned after finding bank: statements, "that had very suspicious spending on them". Ms. Kmezich felt they were suspicious because the statements showed they belonged to the FUFK Operating Account and the purchases she saw couldn't be related to a FUFK expense. After the special events, which occur every April and

Page 19 every August, she pointed out that there are minimal expenses for FUFK. discovered on the bank statement were "very alarming", Fer example: • • • • • $700 charge to 24 Hour Fitness Charges related to a trip to Disneyland by Kirsten and her children Ms. Hamling's paid her children's private school tuition Car repairs Nordstrom The charges she

Ms. Kmezich stated that only one person had control of the FUFK account and that was Ms. Hamling. When she first started working for Traction, she stated that Kristen got her involved with the Executive Board at Children's Hospital (CH). She would attend all of the meeting with CH as the Representative of FUFK which met approximately every three months. Every time she was asked by CH how much money was raised by FUFK she would repeat "what she had been told by Kristen and by everyone else". She would also repeat the verbiage off of the FUFK website as well. She would tell CH that FUFK had raised $375k for the CH Bum Center and she stated they would always looks at her funny and tell her this was interesting. After the April 2011 event, Ms. Kmezich stated FUFK had raised a lot of money and her and Ms. Rubis made sure to keep track of all of their expenses. She stated she met with Ms. Rubis and Ms. Hamling after the event and they figured out together that CH would be getting a check for approximately $25,000.00 from the proceeds of the event. In July or August of 2011, Ms. Krnezich attended a CH meeting and was told that they were still waiting for the check from FUFK and they wanted a status of when they would get it. She was surprised and thought Ms. Hamling had already sent it to them. When she returned to work she asked Ms. Hamling about the check, but instead Ms. Hamling asked her why the EC of CH was asking her. Ms. Hamling told her to no longer communicate any financial information to CH in the future because she was taken care of it. Ms. Krnezich stated she trusted Ms. Hamling because she never treated her poorly, and she was a good mentor. So when she told her she would take care of it, she took her at her word and left it alone. Ms. Kmezich had heard that CH still hadn't received the money so she met with Ms. Rubis and they decided that they would take extra care to watch their expenses for their debut event in August 2011. They wanted to make sure they weren't messing up somewhere and to keep an eye if someone was taking the money. After the debut event they sat down and went over all of their

Page 20 expenses and how much money came in, and the two of them determined they should've raised 10k for CH~ 1\18. Hamling was on their e-mail chain and disputed the 10k and replied they were actually missing $500.00 and they needed to sell more calendars to make up the difference. This raised red flags for both she and Ms. Rubis, so the following Monday they came into the Traction Office and opened a binder in the FUFK compartment and discovered a bank statement with numerous suspicious charges on it. This is when they decided that something was wrong with the finances and the money for FUFK, but they weren't sure what to do about it. Ms. Rubis had spoken to her sister who is an attorney about what they discovered. Ms. Rubis' sister told them to file a police report immediately. They decided before "they made any drastic decisions"; they would confront Hamling about what they discovered. FUFK had three small events the following weekend, so they ended up sitting Ms. Hamling down and asked her there was something going on. During the meeting they told Ms. Hamling that CH had done an audit and there was missing money. Ms. Hamling told them that no money was missing and stated, "There was no funny business going on". The next Sunday, Ms. Kmezich and Ms. Rubis decided to resign, effectively immediately. On Monday, Ms. Hamling called Ms. Rubis, "balling her eyes out" and told her she was sorry for what she had done. Ms. Hamling told Ms. Rubis she was going to eH that day to tell them what she had done and to try and make it right and put the money back. She also told Ms. Rubis she had made a huge mistake and she was going to make it right. On Monday, the 29th, Ms. Rubis and her were forwarded an e-mail from Leslie McKay at CH. The email indicated that Ms. Hamling had confessed to CH and they were thanking her for coming in and being honest and they were going to help her make this right. The e-mail indicated Ms. Hamling would get through this and she was brave. Ms. Kmezich and Ms. Rubis were happy that Ms. Hamling was willing to deal with the problem so they didn't feel a police report was appropriate at the time. On Tuesday, September 6,2011, Ms. Rubis called Ms. Kmezich and stated she was going to call Ms. McKay at CH to make sure everything was okay and to check that she had the right story. Ms. Rubis sent Ms. McKay an e-mail and explained the situation and told her she didn't want to do any harm to FUFK. Ms. McKay called Ms. Rubis back immediately and told her she never heard of this situation and hadn't spoken to Ms. Hamling. During this conversation they discovered the e-mail that Ms. Hamling had forwarded to them from Ms. McKay had been forged. She believes Ms. Hamling did this so she and Ms. Rubis wouldn't take any further action against her.

Page 21 Ms. Kmezich also has voice mails from Hamling who stated she had gone to Clf and she was sorry for what she did. Once they found 'out she had lied to them again, they cut off all communication with Ms. Hamling and began working with Ms. McKay at eH to try and figure out what was going on. They were told by Ms. McKay not to make this public until after CH gala event on September 9th, because they raised millions of dollars at this event and they didn't want any negative publicity. They were told to be quiet and the CH legal team was looking in on this. According to Ms. Kmezich, Ms. McKay met with Ms. Hamling on Wednesday, September 7, 2011 but she didn't believe Ms. Hamling told her everything. After that meeting, Ms. McKay told her they were going to work it out. She stated she was concerned the way Ms. McKay was handling it the situation because she didn't seem, "shocked" or "blown out of the water". She stated Ms. McKay told Ms. Rubis this would not only affect her job but her own job as well. She stated they CH found out Ms. McKay wasn't doing a good job of keeping track of the foundations CH worked with. Ms. Rubis sent copies of the bank statements she had found and sent them to Ms. McKay at CH so they were aware of the magnitude of the situation. Ms. McKay called Ms. Rubis back and told her not to send her anymore documentation to CH, they didn't want it and they were done talking about this. At this point they determined that CH was unwilling to help them investigate this matter or protect the people who dedicated themselves to FUFK and raised money for CR. They felt CH turned their backs on the whole thing and left it up to the Ee to figure it out. Next, they went to the Ee and told them what they had discovered up to this point. Even though the EC wasn't a "board of directors" they knew the EC was involved long enough, they trusted them with making the right decisions about the matter. The EC hired a forensic accountant by name of Charlotte Bell Cosgrove and asked her to conduct an audit. Mrs. Cosgrove asked them to hold off in contacting the police until she could complete her work. Ms. Kmezich confirmed during the two years she was at Traction, she never once thought FUFK wasn't a non-profit charity. She stated they would create training sheets for the firefighters and the media that always got approved by Ms. Hamling. All these sheets indicated that FUFK was a non-profit organization that produced the Colorado Firefighters Calendar and all proceeds were donated to the children's hospital burn center. This is what they were always told, and it wasn't until last week when she heard from the media that FUFK wasn't registered as a 501 3c business. She felt puzzled about this because anytime someone gave a donation to FUFK; they would give the person a" form with a 501 3c tax right off number". Ms. Kmezich has no idea what number is on the forms and to whom to what company it belongs to. She stated that Ms. Hamling is the person who gave her the form to hand out to donors.

Page 22 Ms. Kmezich confirmed that in the folder with the bank statements they found, there was a 501 3c application form from the IRS. After reviewing the form she determined that 98% of the information in the application was false. There were Ee members listed on the application as board members and she listed an accountant they hadn't spoken to in years. The application indicated that Ms. Rubis and other Ee members were receiving a salary from FUFK. Ms. Kmezich didn't know if the application she read was ever mailed or sent to the IRS and that was just a copy for Kirsten records. Ms. Kmezich described the following items as legitimate expenses for FUFK:

Event Expenses o o o o o o Catering Butler Rents for tables, chairs, table clothes Event Center Printing fees for the calendar Photography fees Graphic Designer fees

When the invoices would arrive, Ms. Kmezich and Ms. Rubis would put them on Ms. Hamling's desk to be paid. Ms. Kmezich wasn't sure how the payments were made, but thought she might've seen a debit card used a couple of times. She clarified the charges on the bank statements they didn't highlight could've been legitimate expenses but she and Keely weren't sure. Ms. Kmezich confirmed that the highlighted charges couldn't be legitimate expenses for FUFK and mentioned a few of them. o o o o o o Nordstrom's Saks Fifth Avenue Credit Card Payments Car Payments Whole Foods Comedy Works

Page 23 When asked about Whole Foods, Ms. Kmezich stated there was a chance that something was purchased for an EC meeting from Whole Foods. She stated they had received tickets from Comedy Works for fund raising and there was no reason FUFK should've paid for anything from this business. She stated they would have live auctions at some of the events in order to raise additional money. For example, at the Judging Event they would auction off Celebrity Judge Seats, and oiling up the firefighters back stage. Additional ways they raised money was by selling t-shirts with a heart logo that read I "heart" firefighters. There were also silent auctions at the events, where people. and sponsors would donate the items auctioned off. Ms. Krnezich stated that Ms. Hamling would 'Just show up to the events" and she and Ms. Rubis handled everything. Ms. Hamling wouldn't have purchased any items for these events on her on without their knowledge. Ms. Kmezich verified the source of income showing up on the monthly bank statements. With the exception of May, June, July and the first part of August, they would have up to 4-5 calendar signing events every month. The majority of times, the customer purchased the calendars with cash. Also, all the firefighters in the calendar were requested to sell at least 80 calendars during the year they were in the calendar. Some firefighters would sell 3 to 5 boxes of calendars and put the money in an envelope and then give it to Ms. Hamling. Ms. Kmezich believes that many of the deposits put into the FUFK account were probably checks that customers had written out for merchandise from FUFK. 80 Calendars would equal one box and they were sold for $15.00 each. The cost to print the calendar was approximately $8,000.00 and they printed 10 thousand calendars last year. Ms. Kmezich believes approximately 8 thousand calendars were sold. Ticket Sales to the events were also a source of income for FUFK. The price of a ticket for the last event they had was $75 per person. The event held last April, 2011; they raised $39,852.87 from online ticket sales alone. This didn't include tickets sold at the event or calendar sales. These purchases were made by going to the FUFK website and purchasing the tickets there. This money wasn't deposited directly into the FUFK operating account. But instead Ms. Hamling would receive a check written to her from the company hosting their ticket sales called EZ Register. Because they didn't see any of the FUPK's bank statements for 2011 they didn't know if the check was ever deposited into this account. Ms. Hamling was responsible for depositing the money into the FUFK account and would typically do it using an ATM. Their office was located on the 16th Street Mall, When customers sent in a check to pay for FUFK merchandise, the checks would be turned over to Kirsten. She

Page 24 stated that Kirsten was horrible when it came to bookkeeping. The firefighters would compete ,,=~- ~~~eo i-h~ ~~~f m"n"'y Th·;s l",,,t uP",- tt.",,, had firefizhters u'n PO<::tl1TI::ltf'fl C:VCilY yc:;(1.1 G J~L+J_, --.L~o.&. ....
~."o.-· LV .:') ni[..~ vv_l__lV _n~~n,:j iCJ.-l;:')\..oU l-.lJ.V _111VlJ!L J. .lV.L
lui. .1..1. J. .f~o...J~ L,...l__j_Vj
..i...i. .... Ir_.- ....~


.._ .......... ...__..._,.._......-_ ...

they raised more than $7000.00 dollars. When she and Ms. Rubis asked for a breakdown this last year, Ms. Hamling sent them a breakdown that was completely inaccurate, It was missing firefighters that had sold calendars. It showed one firefighter who raised $2,500.00 only selling $50.00 worth of calendars. When Ms. Kmezich and Ms. Rubis approached Ms. Hamling and asked her if everything was okay, she told them she had a bookkeeper and everything was fine. Ms. Hamling told them the accountant was a "he" and "he" would let her know if anything was wrong. Ms. Kmezich stated Ms. Hamlinghad told Clf that the accountant was a "she". Ms. Kmezich didn't know the accountant's name and believes there is no accountant. She or Ms. Rubis never received any phone calls well at work from anyone representing themselves as FUFK's Accountant. Reviewing the spreadsheet that Ms. Hamling created, it showed 15 firefighters on it. Ms. Kmezich stated when the 2012 calendar came out, there would be a December 2011 firefighter and a January 2012 included. Since FUFK was given a "seize and desist" order from CH on September 9,2011, many of the firefighters in the upcoming 2012 calendar have had a chance to sell many calendars. Ms. Hamling also had an Amazon.corn online account she used to sell FUFK's merchandise. She stated she had "access to the backend" of this account, so when customers ordered something, she could log on and send them a message when their items shipped. Before she and Ms. Rubis resigned, she logged into the account and discovered that the money from those sales was going directly into the FUFK Operating Account at Wells Fargo Bank. She believes there was approximately $5,000.00 in sales deposited into this account in the past three years. Prior to Ms. Kmezich being hired, Ms. Rubis was responsible for updating the FUFK's website. Once she was hired, Ms. Kmezich was the person responsible for doing this. She stated the website was built by a company called, "Carbon-S", They gave her the ability to login to the website on the "backend" to make any changes Ms. Hamling wanted her to do. Once she resigned, she stated Ms. Hamling changed the login to the Amazon and FUFK account. After they left, she stated that Ms. Hamling continued to send e-mails to the EC and "cc" her and Ms. Rubis so they would think everything was okay. Ms. Kmezich confirmed that Carbon-S had an office in Downtown Denver. The person she worked with there, was Shea Gallagher. The phone number was 303-222-8045. She wasn't sure if Carbon-8 kept track of changes to FUFK's website. She recommended a website called

Page 25 www.webarchives.This site would track changes including updates to various websites including Fl.JFK. She pointed out the FUFK's 'website as late as July, 2011, showed that it was a non-profit organization that donates all proceeds to the CH Bum Center. She stated she wasn't aware of any other accounts. The Traction business is under the umbrella of the Morey Evans Advertising Group. Glen Morey is the owner of the Morey Evans Group. Under his business name is Traction Communications, Motive, Elastic Glass, which is a video agency. None of these additional businesses helped with FUFK activities. Even though they shared the same office, they were individual businesses and didn't share clients. On November 16, 2011, your affiant introduced this case to the Denver County Statutory Grand Jury Panel-B and it was accepted for further investigation. The Grand Jury also gave authorization for subpoenas go be issued for further testimony and evidence. On the same day, your affiant delivered a copy of the Grand Jury Subpoena to Ms. Hamling's attorney. The subpoena requested the following items: "Any and all records to include but are not limited to:" "Original signed by-laws, organizational documents, incorporation documents, financial records, tax returns, audit records, correspondence, back-up receipts or invoices for expenses or foundation funds, board meeting minutes or records, phone contracts related to foundation, and any other information tending to establish the ownership and/or control of the above referenced entities between and including 2004 through November 16, 2011. Any and all data, correspondence, letters, notes, ledgers, spreadsheets, documents, memorandum, meeting notes and minutes; as well as financial and business records which tend to establish or describe transactions, documents, or numbers. "Banking records, to include account names and locations, location(s) of safety deposit boxes, loan records, security purchases, cancelled checks, check stock, financial transaction devices, currency, monthly account statements or other information which tends to establish the existence and location of assets or proceeds related to the possession, and use of accounts in the names of the individual persons and/or entity names referenced above. " On this same day, Ms. Hamling's attomey provided your affiant with a copy of a 1 page form titled, "Fundraising Event Approval Fonn". Above the title of the form was the name, "The Children's Hospital Foundation". The form was dated, "10/19" and signed by Ms. Hamling on "11/16/03". The company listed on the form is Fired Up For Kids and the contact persons, were Kirsten Hamling & Kate Varden. FUFK is described as an, "organization established to produce & dist-the Denver Metro Fire Fighter Calendar". The form indicates the anticipated revenues to

Page 26 be, "$15 to 35!40k" and the anticipated expenses to be, "$25~30K". Handwritten on the form is "may not be profitable "TCH". This form was signed by Ms. Hamling but not by Ms. Varden. The "Title" under Ms. Hamling's name is "PrincipallMGH Associates". Once your affiant received the partial documents requested in the Grand Jury Subpoena, your affiant discovered there was a second page associated with the above document titled, "Fundraising Event Approval Form". The second page was titled, "Fundraising Event Policy Guidelines". Under these guidelines, there were 12 items that needed to be followed in order for CH to partner with individuals, groups and organizations. The one number that stood out was #12. #12 states, "Within ninety (90) days of the completion of the scheduled event, all net proceeds will be delivered to The Children's Hospital Foundation, 1245 East Colfax Avenue, Denver, Colorado 80218". On November 17, 2011, your affiant spoke with EUy Leake who is an Executive Committee Member (BC) for Fired Up for Kids, Inc. (FUFK). She stated she currently works for the Colorado Women's Chamber of Commerce (CWCC). She stated she was talking with Judy Richter who is a board member from Children's Hospital who told her about FUFK and thought they would be a good partner for CWCC. Ms. Leake stated they partnered up for an event in approximately 2009 and that was the first time she had met Ms. Hamling. The event was a typical after hour's event for the chamber and a calendar signing for FUFK. At the event, she stated she told Ms. Hamling if they ever needed volunteers to give her a call. After this conversation, she stated Ms. Hamling invited her to sit on the BC for FUFK to help plan their events. Ms. Leake stated the first time she had heard of the theft allegations by Kirsten is when an emergency meeting was called for. She stated she hasn't had any personal conversation with Ms. Hamling since the allegations came out. She confirmed she believed FUFK was a non-profit organization and all of the proceeds went to Children's Hospital. She stated the first time she ever heard that FUFK was a for-profit business and only a portion of the proceeds went to Children's Hospital is when Ms. Hamling's attorney's released their press statement. Ms. Leake stated all of the sponsor packets that were passed out indicated that FUFK was a "501 c3" business, and she confirmed no one ever questioned her about this. She confirmed all of the documents used by FUFK were completed by Ms. Hamling and the EC never had any input on the designs or its content. She stated the EC would discuss sponsors and media appearances and what needed to be done for each event. She confirmed all of the money raised at the various

Page 27 events went into a cash box. Once the event was over, the cash box was turned over to Ms. Hamling. She stated it was EC assumption that she was keeping track of all the money and then cutting a check to Children's Hospital. Ms. Leake stated when she first became involved with FUFK, she had offered to come up with a way to track t-shirt and calendar sales but Ms. Hamling would "put her off'. Then at one of the events, they couldn't get the credit card machines to work so Ms. Hamling told them the money had to go to FUFK first so they could pay for the event before giving any money to Children's Hospital. She thought this was odd because she felt Children's Hospital would make sure the event would be paid for if they money went directly to them and not FUFK. She stated this occurred during the Debut Party in 2010. On the same day, your affiant met with Steve Winesett, Leslie McKay and Cary Larger with the Children's Hospital Colorado Foundation. All three provided your affiant with copies of e-mails, and summaries of their involvement with FUFK. One of the documents they provided was the "The Children's Hospital Foundation", "Fired Up For Kids", "Foundation Activity With Revenue Breakout Analysis" dated September 22, 2011. According to this report, $218,242.00 had been raised from 2003-2011. This amount included, "$500+ Gifts & Sponsorships", "Sales, Admissions, Gifts <"500" minus expense for the same years. It turns out; this amount is from donations and money raised by Children's Hospital Colorado Foundation at various FUFK events through 2003-2011. It also includes the following two checks written to CH by FUFK in the amounts of, $8,500.00 on 8/30/2011 and $6,270.00 on 9/12/2011. Also, during this meeting, your affiant showed them the "Fundraising Event Approval Form" described above and all three stated they've never seen this document before. Your affiant also asked them about the "Tax ID #26-3942523" that's listed on some of the FUFK forms. They stated they weren't aware of this number and it didn't belong to CR. On November 29, 2011, your affiant spoke with Keely Traction Communication (TC) and assisted with Fired Up met Ms. Hamling in 2007; while they were on the "Do Hamling was the Chairperson and Ms. Rubis was currently Rubis who was a former employee at for Kids, Inc., (FUFK). Ms. Rubis first at the Zoo" committee together. Ms. working for 5280 Magazine.

When Ms. Rubis left 5280 Magazine, Ms. Hamling was looking for a PR Director for TC so she started working for her in July 2008. TC is small PRiMarketing Agency with only three employees including Ms. Hamling. Ms. Rubis She was responsible for the Account Executive work under her as well as all the Public Relations Accounts. The third employee was Yvette Rebik who was the Account Executive. According to Ms. Rubis, FUFK was their "pro-bono" project they worked on through Traction. Since Ms. Hamling was the founder, she called this her "pet-project". Traction did all of the

Page 28 public relations outreach for FUFK, as well as the event and committee planning. FUFK didn't pay Traction any fees and weren't charged any, because this was Ms. Hamling's project Out of a typical 40 hour work week at Traction, 20 of those hours would be dedicated towards FUFK. Ms. Rubis received a salary from Traction but it was "an unspoken thing" that FUFK was part of that responsibility. During the April and August events the workload would increase dramatically, but they did work on FUFK regularly throughout the year. Angela Kmezich did most of the work for FUFK, but Ms. Rubis was responsible for event management. She would work with the firefighters and most of the day to day management of event projects. She would work with different fire departments as well as vendors and the Executive Committee (EC). Ms. Rubis stated they operated FUFK as if it was a paying client and that's how it functioned under Traction. She would help plan the Debut and Judging Events from start to finish as well as managing the ~vents on site. When it came to paying some vendors for the events, Ms. Hamling would ask Ms. Rubis to pay using her own personal credit card and then she would be reimbursed. Also, some vendors would bill for their services and then be paid after the events, Ms. Rubis stated there were several large billing items for each event: • The EXDO Event Center located at 1399 35th Street Denver, CO 80205, was around $6,000.00 and she paid for this on her personal credit card on two different occasions and was reimbursed. o In 2011, she asked Kirsten to pay for this using the FUFK debit card because Kirsten took too long the previous times to pay her back. Because it was past the normal billing cycle of her credit card, she got stuck paying the interest out of her own pocket.



Catering on site for attendees, o They would use shop around each year and try to get the best deals.

.. •

Drinks on site for attendees. Photographer o Josh Gold (Josh Gold Photography) related to the events would donate "in kind" for their


90% of the sponsors/vendors services.

Page 29 o o o For example, printing costs. The vendors would then get exposure on site and in the calendar for their donation, Flyers would be given to them with the FUFK's tax ID number so they could use it when filing their taxes. i. No receipts were given. In April 2011; Ms. Rubis left Traction to live in England for 6 months. When she returned she went back to work at Traction but realized this wasn't going to be a long term solution for her career. Ms. Hamling wanted her to stay and asked her to come aboard as a partner. She agreed to try it out for a year and then see what happens. She stated Ms. Hamling gave her some paperwork to sign, but she told her she wanted to wait and see what the financials looked like before signing. 8 months later, Ms. Rubis stilI hadn't seen the financials and the paperwork never got signed. The more times she asked, she stated Ms. Hamling became less forthright about the finances. Ms. Rubis had lots of questions about FUFK and in February 2011, she told Ms. Hamling, from a business standpoint, Traction should consider charging FUFK for allofthe time and work they do. Ms. Hamling thought this was a good idea, and told her she had considered this before. She recommended they "map" something out to try and make it work. As they were getting ready for the Judging Event in Apri1201l, Ms. Rubis asked Ms. Hamling to write a $4,000.00 check out of the FUFK account for a deposit on the event center. Ms. Hamling told her she couldn't, because there was only $400.00 in the account. This is when she saw a flashing red sign and believed there was something wrong. Based upon the events they had from July 2010 thruJanuary 2011, she believed there should've been at least $20,000.00 in the account, not $400.00. She asked Ms. Hamling why there wasn't any money in the account and she told her she was always writing checks to Children's Hospital (CH) and the money doesn't stay in the account very long. Something in Ms. Rubis' gut made her feel like she needed to start paying more attention to how much money FUFK was raising from now on. This brings us to the Judging Event in April, 2011. During the event Ms. Rubis asked a lady selling merchandise at the t-shirt table to keep real good tabs on the cash coming in. At the end of the day, she and Elizabeth Leahy counted all the money before handing it over to Ms. Hamling. She didn't tell Elizabeth why she wanted to keep such close tabs on the money coming in. The amount of money they counted from the t-shirt table was $1;600.00 in cash. The money was documented on a spreadsheet and then handed over to Ms. Hamling, which was their normal procedure. Depending on the time of the year, the t-shirts sold between $15 and $20 apiece. The calendars sold for $15 and the price is going to $20 for 2012. Both the t-shirts and calendars were

Page 30 sold on the same table and both sales account for the $1,600.00. Ms. Rubis stated they did a +¥a~1K nf' the inventorv "nli h"uJ ml11'h t shirts ann cal en (J..._ thev started dars Li ..
V-''L.U. J,vL

"+~_:1-1 ~ .., 1-" U_l_ .l\.C.":"-j-'l.!1e, ~~ IT'''~~;~~ t.ClllUlC::JUU

v ......L.1. ... 'V".l.) .




.L.L.L_...-' .......










with. The $1,600.00 included cash, checks and credit card sales. On the following Monday, when they counted the money again, it was $500.00 short. It was Ms. Hamling, Ms. Rubis and Ms. Kmezich who did the counting on Monday morning. Inside the bag of money was sticky note that indicated $1,600.00 but they were only counting $1,100.00. Ms. Hamling told them "someone must've lifted it" from the time you counted it and gave it to her. She stated that it's been in the trunk of her car all weekend and no one had access to it and she didn't touch it. Ms. Rubis Keely described Ms. Hamling as not being upset about the money being stolen and said she was "as cool as a cucumber" about it. The checks. and credit card sales were still present on Monday. Ms. Rubis asked Ms. Hamling if she would print out the bank statements so she could start reconciling the cash deposits with the account Ms. Hamling told her no problem, but it never happened. In May she started sending notes to Ms. Hamling approximately every three weeks reminding her to get copies of the FUFK bank statements but she ignored her. After the JUdging Event they had a couple of signing events involving some of the firefighters in the 2011 calendar. During this time, the firefighters would sell calendars and then give "big envelopes of cash and checks" directly to Ms. Hamling. Around June 2011, they started keeping track of credit card purchases by using a credit card swiper on Kirsten's iPad and iPhone called the "Square". Ms. Rubis speculated the cash raised at these events never made it into the FUFK account, but she had no proof. During these signing events, she stated that volunteers from the EC typically handled most of the transactions so the firefighters could concentrate on signing the merchandise. There was no audit of the cash being raised during the events. She stated e-mails were sent out indicating how much money they were giving Ms. Hamling to help keep track of the money. In approximately Mayor June 2011, Ms. Rubis sent an e-mail to her contact at CH and asked for a copy of donations that FUFK has made up to the current date. Once she received the list, she became "very alarmed" because it was way off from what it should've been. Her contact at CH was Jaclyn Owens-Lindsey.

Page 31 Below is the amount of donations from FUFK to CH according to Ms. Owens-Lindsey:

! 2004
2005 ! 2006 2007 2008 2009 2010 Total

$10,821.63 -$25,413.23 $34,084.72 $35,945.87 $42,488.78 $l3,772.18 $7,863.06 $170,389.47

Ms. Rubis contacted Ms. Hamling and told her things weren't adding up here. She mentioned checks were missing and we need to find them. Ms. Hamling told her, "don't worry your pretty little head about this"; she was "going way above Jaclyn's head and working with Tony at CH". Ms. Hamling told her, she was working with her accountant and she was aware there was money missing. Ms. Hamling told her money got deposited into the wrong account at CH and everything was being worked out and not to worry about it. Ms. Hamling referred to her accountant as Bret or Brent but Ms. Rubis believes he doesn't exist. She stated the explanations that Ms. Hamling was giving, didn't make sense. When looking at the numbers, Ms. Hamling stated that Jaclyn had the wrong numbers. The accountant for Traction was Janet Russell who works for the Morey Evans Group. Because Traction paid into the Morey Evans Group every month they had access to Ms. Russell and a receptionist. Ms. Russell did no books/accounting for FUFK according to Ms. Rubis. She was responsible for bookkeeping and payroll for Traction. After several months of being put off by Ms. Hamling, Ms. Rubis and Ms. Kmezich decided to look into the matter further. While looking they found bank statements belonging to FUFK. The statements showed numerous non-business related purchases. She thought this had to be wrong because it appeared that Ms. Hamling was using this account as her personal account. She and Ms. Kmezich confronted her and pointed out that their expenses weren't matching up with their income and was there something they needed to know. Ms. Hamling told them "no", and pointed out this was a tough economy and people weren't donating as much -. Ms. Hamling told Ms. Rubis expenses were higher and she needed to keep an eye on her expenses for the events. This way they could donate the max amount of money to charities. Ms. Hamling told them there "was nothing off and they had nothing to be concerned about". Ms. Hamling didn't act surprised they were looking at the FUFK bank statements without her permission. They asked her if they could go through the FUFK bank account and she told "yes", but stated she didn't have access to the account from there. She told them they could go through the account on Monday from the office. Ms. Rubis asked Ms. Hamling if anyone looked at this account would they find anything off and

Page 32 she said, "No, absolutely nothing off, everything is as is, we just haven't been making as much money for the charity as we used to". TIns meeting took place at a Starbucks in the Denver Tech Center. They wanted to meet with Hamling before the next big event so they could clear the air. Once the meeting was over, Ms. Kmezich left and Ms. Rubis was alone with Ms. Hamling. She stated she felt they had "just completely ambushed" her, so she asked Ms. Hamling, "Are you in trouble, what is going on here?" She told her she saw the banks statements and what she saw made her feel uncomfortable. Ms. Hamling told her, "No" and said she had used the account on a couple of occasions but she always paid the money back. She told her there were a couple of months were the money was tight so she used the FUFK cash, but she always paid it back. Ms. Hamling told her "there was nothing funny going on" and she wasn't in trouble and blamed "sloppy accounting". Ms. Rubis stated she pointed out what she was doing was illegal. Ms. Hamling stayed silent at first and then told her no one had access to the account except her so no one would see. She told her, "It really didn't matter as long as my taxes are right at the end of the year". It was at this point that Ms. Rubis realized they had a fundamental difference about what was okay and what wasn't. It was at this point she decided she was going to resign the next day. The next day, Ms. Rubis and Ms. Kmezich both resigned. Your affiant asked Ms. Rubis if Traction was doing well financially and she told me at one point she had to reduce her salary by half because the business wasn't doing well. This occurred prior to her leaving the business for 6 months and moving to England. It was her understanding that while she was gone, Ms. Hamling got two large projects that really helped the company for a few months. Later on, Traction lost a major account and the Ms. Rubis knew that the large account she had wasn't big enough to cover expenses for all three salaries. When Ms. Rubis talked with Ms. Hamling about her concerns, she told her about the two good months and she didn't appear to be too worried about it. Whatever income Traction generated, 20% would go to the Morey Evans Group. She stated that Ms. Hamling was terrible about paying invoices. She stated they were "consistently being chased" by vendors and partners. She wasn't sure if it was sloppy accounting on Ms. Hamling's part or if they were in trouble. Either way she didn't know, because she wasn't privileged to this information. Ms. Rubis believed Ms. Hamling owned Traction since 2006. The day Ms. Rubis and Ms. Kmezich resigned, Ms. Hamling called Ms. Rubis and was very upset. Ms. Hamling told her she hadn't been able to sleep since the conversation they had the previous Saturday. Ms. Hamling told her she went back through the books and realized that she had been "commingling funds". Ms. Hamling told Ms. Rubis she was going to CH today to tell them what she had done and to make this right. Ms. Rubis felt relieved because she thought it was her responsibility to inform CH on what was going on and now she wouldn't have to do this. Because

Page 33 Hamling was going to do the right thing, Ms. Rubis felt she needed to support her since she had been her mentor for a long time. Ms. Hamling and Ms. Rubis had a few meetings afterwards and Ms. Hamling told her "thank you so much for how you're handling this, and I'm so sony I've done this to you". She told her she was S011Y for doing this to everyone. Ms. Hamling told her CH was really great and they were working with her and they were putting a plan in place. Ms. Hamling was going to sell her stock. Ms. Hamling told Ms. Rubis she couldn't believe she was so stupid but she was making it right. For approximately a week, Ms. Rubis thought Ms. Hamling had been working with CH to resolve this problem. Ms. Hamling was forwarding her a handful of e-mails that appeared to be sent n-om Leslie at CH. Ms. Rubis felt there was something wrong with the e-mails because the tone appeared to be angry and directed towards Ms. Kmezich, rather than making things right. After thinking about it over the weekend, Ms. Rubis decided to reach out and contact Ms. McKay at CH directly to straighten out the information in the e-mails that Ms. Hamling had forwarded to her. Ms. McKay contacted her immediately and told her this was the first time she had ever heard of this and she denied writing any of the e-mails, It was at this point Ms. Rubis realized Ms. Hamling had disappointed her again. She knew Ms. Hamling was back in a comer and she was going to do whatever she could to get herself out of it. This is when she decided to stop having any additional communications with Ms. Hamling. Ms. Rubis started working with CH directly by providing them with the documentation she had discovered while working at Traction. She was working with McKay at CH for a while, until CI-I's legal team became involved. At this point Ms. Rubis was told not to give them anymore documentation and to let the EC deal with it and they didn't want to be involved. Prior to this, Ms. McKay had asked her to work with CH and not to get the EC involved until they could figure out what was going on. Ms. Rubis mentioned that Perry Palmer an EC member had called her and said that Ms. Hamling was going to sign over FUFK to him. She told him she couldn't let him do that without disclosing all of the information she had. Ms. Rubis began working with Perry Palmer and the EC by provided them with the same information she and Ms. Kmezich gave to CH. Collectively they decided to file a criminal complaint with the Denver District Attorney's Office. On the FUFK Donation form there is a Tax ID # 26-3942523. Ms. Rubis believes this is the Tax ID # that belongs to CR. When she first started she stated they were using a different Tax ID #. Your affiant explained that CH stated this wasn't their Tax ID #. Ms. Rubis told your affiant she

Page 34 had no idea whose number it belonged to or where it came from. Ms. Rubis stated that all of the FUFK documents were put together as a group with Kirsten's assistance. Ms. Hamling is the person who gave them the Tax ID # to use on the forms and marketing material and verified all of the information. Ms. Rubis stated she never thought FUFK was a "For Profit Business" and was surprised when Ms. Hamling's attorney stated that information to the media .. She stated they always referred to FUFK as non-profit charity in all their literature and when talking to the public. She doesn't remember a specific occasion if and when she heard Ms. Hamling in person, referring to FUFK as a non-profit to a vendor or someone giving a donation. Everyone including the EC used the same marketing materials. As far as the FUFK website went, Ms. Rubis stated they worked with a web design company and they managed the content. She stated Ms. Kmezich was the person who made the changes. On December 15, 2011, the Colorado Attorney's Office filed a "Complaint for Judicial Dissolution of a Nonprofit Corporation". The complaint listed the following "General Allegations": • "Defendant Fired Up For Kids, Inc. incorporated as a nonprofit corporation in Colorado on or about November 27,2007." "The Fired Up For Kids' Articles of Incorporation list two members of the' initial Board of Directors: Kirsten Hamling, the founder of Fired Up For Kids, and Alison Heller." "On October 4, 2011, Ms. Heller Secretary of State stating that she directors for Fired Up For Kids, and in the Articles of Incorporation until filed a Statement of Correction with the Colorado had never been an acting member of the board of has not realized that she was listed as a board member September 26,2011."


"According to its Articlesof Incorporation filed with the Colorado Secretary of State, Fired Up forKids is a nonprofit organization organized for a charitable purpose as identified in Section 501 (c)(3) of the Internal Revenue Code. The Articles of Incorporation specify that Fired Up For Kids was organized to raise funds for The Children's Hospital Burn Center and other bum center through the sales of firefighter calendars. " "Fired Up For Kids' Articles ofIncorporation o further state that"

"Upon the dissolution of this corporation, its assets remaining after payment, or provision for payment, of all debts and liabilities of this corporation shall be distributed for one or more exempt purposes with the meaning of Section 50l( c)(3)

Page 35 of the Internal Revenue Code or shall be distributed to the federal government, or to a state or local government, for a public purpose. i\J1Y SUCll assets not so disposed of shall be disposed of by a court of competent jurisdiction of the county in which the principal office of the corporation is then located, exclusively for such purposes or to such organization or organizations, as said court shall determine, which are organized and operated exclusively for such purposes." • "Fired Up for Kids' Articles of Incorporation state that no part of the net earnings of the corporation shall inure to the benefit of or bedistributable to its directors of officers. The Articles of Incorporation also state that the corporation shall not carry on any other activities not permitted to be carried on by an organization exempt from federal income tax under section 501 (c)(3) of the Internal Revenue Code. Section 501 (c)(3) of the Internal Revenue Code prohibits a charitable 501 (c)(3) organization from being organized or operated for the benef t of private interests." "In its solicitation materials, including materials sent to even sponsors as well as on its website, Fired up For Kids has represented that it is a "Denver-based nonprofit organization" that donates all proceeds from special events and sales of The Colorado Firefighter Calendar to The Children's Hospital Burn Center." "Fired Up For Kids also has represented itself in public solicitation materials as a taxexempt 501 (c)(3) organization." "In fact, Fired Up for Kids never received 501 (c)(3) status from the United States Intemal Revenue Service. Nevertheless, upon information and belief, Fired Up For Kids never paid taxes." "Kirsten Hamling was the sold director of Fired Up For Kids and its founder. Ms. Hamling is also the sole signatory on Fired Up for Kids operating account, maintained at Wells Fargo Bank." "Almost immediately after the incorporation of Fired Up For Kids as a nonprofit corporation, Ms. Hamling began making charges of a personal nature to the Fired Up For Kids operating account. These charges continued through at least July 2010. Charges include money spent at nail and hair salons, money spent on airline tickets to California. These charges had nothing to do with Fired Up For Kids." "Fired Up For Kids had a volunteer Executive Committee that assisted in putting on fundraising events for the organization. On September 21,2011, the Executive Committee sent a letter to Ms. Hamling requesting she resign from Fired Up For Kids based upon her admission that she co-mingled personal finances and finances of her for-profit company,

Page 36 Traction Communications, with Fired Up For Kids' finances. The letter also requested that Ms. Hamling turn over all corporate assets of Fired Up For Kids to the Executive Committee such that it could continue operations of the organization." • "Ms. Hamling submitted her letter of resignation from Fired Up For Kids, Inc., to the Executive Committee on September 21,201 L However, she continues to maintain control over all Fired Up For Kids' assets, including control over its operating account as well as its calendar inventory and intellectual property." "On November 9,2011, Ms. Hamling issued a press release through her attorneys stating Fired Up for Kids is a for-profit company, and that she is the sole owner. However, Fired Up For Kids continues to be registered with the Colorado Secretary of State as a nonprofit corporation. " "Similarly, the Fired Up For Kids website language has been changed to state that it is simply fin "organization" as opposed to a "Denver-based nonprofit organization," and to state that Fired Up For Kids donates only a portion of the proceeds it receives from special events and sales of The Colorado Firefighter Calendar to The Children'S Hospital Burn Center." The members of the Fired Up For Kids Executive Committee consequently have formed another nonprofit corporation, Colorado Firefighter Calendar, Inc., the purpose of which is substantially similar to that of Fired Up For Kids as stated in its Articles of Incorporation."

Your affiant reviewed the FUFK website on November 10, 2011 and observed the changes mentioned above and printed the pages as evidence. On December 16, 2011, Ms. Hamling's attorney returned approximately 2 large "copy paper" boxes to the Grand Jury. These items included some of the following items: • • • • • • FUFK Bank Statements Copies of deposited checks Copies of Invoices "Business Account" Application from Wells Fargo "Fundraising Event Approval Form" IRS-Employer Identification Number

Your affiant reviewed these items and over time discovered missing bank statements and checks.

Page 37 Your affiant as attempted to receive these items from Ms. Hamling's attorney, but as of this time many items are still missing. Your affiant looked at the "Business Account" form from Wells Fargo Bank. The forms show that the FUFK account, #1689928909 was opened up on 8/25/2004 by Ms. Hamling. FUFK was described as an "All-Volunteer Calendar for Children" and "childrens hospital" was its customer. Under the "Business Information" section, is a box marked "Non-Profit", and inside this box the word "No" is typed in. The form shows that Ms. Hamling is the only person signer on the account and 'she used her CO Driver License, #02-308-0743 as ID and her Wells Fargo Visa ATM card as a secondary ID. During the next several months, your affiant reviewed the bank statements and checks that were provided. Your affiant created a spreadsheet and added up the total deposits into the FUFK account from December 2004 through November 201 L The total amount of money deposited during this time period was $519,390.25. The total amount of withdrawals during the same time period was $525,636.57. Your affiant also went through every statement and created a spreadsheet of debit card purchases that appeared to be for personal use and not for the benefit of FUFK. This spreadsheet was reviewed by Ms. Kmezichand Ms. Rubis to determine if any additional charges were business related. After their review of the statements, the total amount of debit card purchases made by Ms. Hamling for her personal use was $174,274.29. Your affiant also added up all of the checks that were written out of the FUFK account to Ms. Hamling and they totaled $41,882.00. Your affiant did find 5 checks written back to the FUFK account from Ms. Hamling's other Wells Fargo account in the amount of $4,460.00. The net amount Ms. Hamling received from FUFK checks was $37,422.00. On February 16, 2012, Ms. Kmezich stopped by your affiant's office and dropped off a folder of documents she had collected from Traction prior to resigning. Inside the folder were the following items:

FUFK bank statements Miscellaneous receipts FUFK internal documents copies of their resignation letters
An e-mail from Jacqueline Owens Lindley from CH

• • •

o Calendar sales info

Page 38 • FUFK Even summary sheets • FUFK-"AttacluTI.ents to IRS Form 1023" (8 Pages) • FUFK-"Conflict of Interest Policy of Fired Up For Kids, Inc." (16 Pages) These last two items appear to be documents that were prepared for the Internal Revenue Service but there is no date anywhere and no signatures. You affiant has no way to determine if they were ever filed with the IRS. On page 1 of the "Attachments to IRS Form 1023", paragraph 5 states: "The Children's Hospital Burn Center program is administered by Kirsten Hamling and our organization's committee. Ms. Hamling operates her own business and has been instrumental in getting firefighters involved. Our organization makes distributions after events and signings, We do receive some income when we host signing events, but all credit card dollars and checks are income of The Children's Hospital. Fired Up For Kids on receives cash donations which we use to cover expenses for firefighters." On page 2, paragraph 2 states: "We only raise money in Denver, CO. All sales of the calendar (online) are done through the hospital. Fired Up for Kids facilitates signings with firefighters, but we use the hospital's credit card machine for sales at signing events." Below this paragraph, the document outlines the compensation for the "Officers, Directors, Trustees, Employees, and Independent Contractors".
Name Kirsten Hamling Title President!Director i Address Compensation i 620 16tl1 Street, $10,500 Ste.200 Denver, CO 80202 620 16tl1 Street, $3,000 Ste.200 Denver, CO , 80202 Street, $2,000 620 16th Ste.200 Denver, CO 80202 Firestation No.8 NONE 1616 Park Avenue I Denver, CO 80218 tl1 Avenue NONE 1916 7 Parkway Denver, CO 80218

, Tiffany Kolander


II Keely Spencer
Tony Gonzales

Secretary !Director




Mary Smith



Page 39 The last paragraph of page 5 states: "Our officers and directors will ensure the funds go to the designated organizations by requiring periodic reports on the use of our organization's resources." The last paragraph of page 6 states: "Fired Up For Kids donates all proceeds received from special events and sales of the Colorado Firefighter Calendar to The Children's Hospital Burn Center. We sell the calendars at the Burn Center site." Your affiant has spoken with Ms. Kmezich and Ms. Rubis who deny ever being compensated for volunteering for FUFK. They both admit to being reimbursed for money they paid to vendors who provided services to FUFK at various events over the years. They would both submit receipts to Ms. Hamling who would write them a check after the event was over. On February 23,2012, your affiant spoke with Cary Larger and Leslie McKay by telephone, They confirmed the figures in the "internal budget sheet" that reflected the "Total Revenue" raised by CH from 2004 thru 2011 was $218,242.00 During the same time period there were $31,387.00 worth of expenses for a net total of $186,555.00. Ms. Larger confirmed CH has only received 2 checks from FUFK over this same time period in the amount of $14,770.00. They confirmed that CH did assist with some expenses at the two yearly events, but the majority of the expenses were paid by FUFK. Ms. Larger did confirm CH did pay for the calendar to be printed in 2009 because Ms. Hamling notified them FUFK didn't have the money to pay. The cost for the printing was $8,206.00. This was the only year ClI paid for this expense. During an earlier conversation with the staff at CR, your affiant was told, back in 2007, Ms. Hamling had provided them with documentation from the Colorado Secretary of State that showed FUFK was a "Non-Profit" agency. This took place after they requested proof that FUFK was a non-profit organization. Later on, your affiant checked the Colorado Secretary's website and found several documents related to FUFK. The first was the "Articles ofIncorporation for a Nonprofit Corporation", which was filed on November 27,2007 at 5:56 P.M. The 3 page form indicated the following people as members of the board: • • • • Kirsten Hamling Jackie Batts Meme Moore Tania Lemus

Page 40 Attached to this 3 page form was a 2 page form that stated the following: "This corporation is organized exclusively for one or more of the purposes as specified in Section 501(c)(3) of the Internal Revenue Code, including, for such purposes, the making of distributions to organizations that qualify as exempt organizations under section 501(c)(3) of the Intemal Revenue Code. This Corporation shall be a nonprofit corporation. The specific purposes for which this corporation is organized are: raising funds for The Children's Hospital Bum Center and other bum centers through the sales of Firefighter calendars." "Upon the dissolution of this corporation, its assets remaining after payment, or provision for payment, of all debts and liabilities of this corporation shall be distributed for one or more exempt purposes with the meaning of Section 501(c)(3) of the Internal Revenue Code or shall be distributed to the federal government, or to a state or local government, for a public purpose. Any such assets not so disposed of shall be disposed of by a court of competent jurisdiction of the county in which the principal office of the corporation is then located, exclusively for such purposes or to such organization or organizations, as said court shall determine, which are organized and operated exclusively for such purposes." "No substantial part of the activities of this corporation shall consist of carrying on propaganda, or otherwise attempting to influence legislation (except as otherwise provided by Section 501(h) of the Internal Revenue Code), and this corporation shall not participate in, or intervene in (including the publishing or distribution of statements), any political campaign of, or in opposition to, any candidate for office." . "No part of the net earnings of this corporation shall inure to the benefit, or be distributable to, it members, directors, officers, or other private person, except that this corporation shall be authorized and empowered to pay reasonable compensation for services rendered and to make payments and distributions in furtherance of the purposes set forth in these articles." "Notwithstanding any other provision of these articles, the corporation shall not carry on any other activities not permitted to be carried on (a) by a corporation exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code, or (b) by a corporation, contributions to which are deductible under section 170(c)(2) of the Internal Revenue Code, or the corresponding section of any future federal tax code." "All references to sections of the Internal Revenue Code shall include such sections as of the date hereof and the corresponding section of any future federal tax code." The second item was a 2 page, "Amended and Restated Articles of Incorporation" filed on 04/0602009 at 7:11 P.M., by Ms. Hamling. Attached to this form was a document from the Internal Revenue Service dated 12/30/2008. The form indicated that "We Assigned You an

Page 41 Employer Identification Number" (EIN), for FUFK. According to the form, "This EIN will identify you, your business. aCCOlL"'1ts, tax returns, and documents, even if )'OU l1ave no employees" The first sentence in paragraph 3 states, "Assigning an EIN does not grant tax-exempt status to non-profit organizations". The third sentence of the same paragraph states, "To apply for formal recognition of tax-exempt status, most organizations will need to complete either Form 1023, Application for Recognition of Exemption Under Section 501 (c) (3) of the Internal Revenue Code, or Form 1024, Application for Recognition of Exemption Under Section 501 (a)". The EIN assigned to FUFK was 26-3942523. This is the same number that is printed on receipts given to some donors when they're donating andlor purchasing a calendar. The third item was a 3 page, "Statement Curing Delinquency" filed on September 12,2011 at 6:45 P.M., by Ani Muradian in Glendale, CA. There were no other documents attached to this form. Your affiant reviewed this form and wasn't able to determine the purpose of this filing. The fourth item was a 2 page, "Statement of Correction Correcting Information for Historical Purposes" filed on October 4, 2011 at 8:24 P.M., Allison Heller. Attached to this form was a short statement written by Ms. Heller dated the same. Below is a summary of what Ms. Heller wrote in her letter: "I, Alison B. Heller, do hereby submit this Correction to the Articles ofIncorporation of Fired Up For Kids, Inc. a Non-Profit Corporation, this 4th day of October, 2011." "My work with Fired Up For Kids, Inc. started in 2007 and ended at approximately the end of 2008. I volunteered for the committee that oversaw the event planning of Fired Up For Kids, Inc.; including the calendar design and layout and event planning. At no time did have any connection to the financial workings of Fired Up For Kids, Inc. as possibly alleged by the Articles of Incorporation (document #20071539150) filed 11127/2007. At no time was 1an acting Member of the Board of Directors. I was not informed that I was listed as such until the week of September 26th, 2011. I have taken immediate steps to correct this improper listing." Since this time, Mr. Muradian filed an "Articles of Dissolution" on January 11,2012 at 1:23 P.M. On January 20, 2012, Ms. Hamling filed a "Statement of Correction Correcting Information for Historical Purposes" on January 20, 2012 at 10:26 A.M. Attached to this form was the "Articles of Dissolution" that Mr. Muradian had filed on January 11th. On Wednesday, April 25, 2012, your affiant received several spreadsheets from Ms. Hamling's attorney. One of the spreadsheets was one your affiant had sent earlier asking for copies of checks missing from the records they provided. Instead of sending copies of the checks, Ms. Hamling filled in payee's name and wrote an explanation of why the checks were written. Also included in the spreadsheets was a document named, "Payments". The document indicated


Page 42 that Ms. Hamling had paid back FUFK or paid expenses for FUFK out of Ms. Hamling personal account or her credit card. There were 17 enhies from July 26, 2008 fum September 2011 in the amount of $26,410.00. Ms. Hamling provided no additional proof of these expenses with either cancelled checks, invoices or any other supporting documents. On Thursday, April 26, 2012, your affiant forwarded a spreadsheet with the updated information to Ms. Rubis and Ms. Kmezich for their review. Both of them disagreed with many of the checks that Ms. Hamling wrote to herself as reimbursements, as well as 14 checks written to Sonia Brotherton. The checks written to Ms. Brotherton began on September 14, 2007 and lasted until August 5, 2009. The checks typically were written for $605.00 and totaled $8,963.00. According to Ms. Hamling, Ms. Brotherton was an intern. Both former employees called her Ms. Hamling's nannylhousekeeper. According to CO DMV, Ms. Brotherton is 68 years old. It appears Ms. Brotherton has moved from her last known address and her phone number is no longer connected. Your affiant was able to track Ms. Brotherton town by contacting her current employer, Adam Tonkin. Mr. Tonkin was on a business call, but told me that Ms. Brotherton was upstairs, Looking after his kids" and he would have her call your affiant back. On Wednesday, May 2, 2012, Ms. Brotherton returned your affiant's phone call. She told your affiant numerous times she didn't want to be involved but would answer your affiant's questions to be polite. She confirmed she knew Kirsten Hamling and had worked for her for approximately 8 years. She stated she was Ms. Hamling's nanny and watched her two children on a part-time basis. She stated she no longer worked for Ms. Hamling because her children grew up. She told your affiant she never worked for Fired Up For Kids, Inc., and she didn't pay attention to what accounts the checks were written on. She stated she has no knowledge of any activities involving Fired Up For Kids, After reviewing all of the checks written from the FUFK account and consulting with Ms. Ms. Rubis and Ms. Kmezich, the total amount of money used by Ms. Hamling for personal use or expenses not related to FUFK was $69,124.93 from March 2, 2007-July 20,2011. On Monday, May 14, 2012, your affiant spoke with Megan Smith by telephone. Ms. Smith is the Vice President of Sales for Wyse Technology. in Irvine, CA and has been employed there for 7 years. She first met Ms. Hamling in 1993, while they were both employees of Ingram Micro in Santa Ana, CA. Ms. Hamling was the Public Relations Manager and she worked in the Major Accounts group. Ms. Smith stated over the next 15 years they've become very close friends. In early 2007, she could tell that Ms. Hamling was feeling stressed and she sensed something was going on with her. In the spring of 2007, Kirsten told her she was having "serious financial problems". Ms. Hamling's company wasn't making any money and she was having a tough time

Page 43 getting new clients. She was struggling with all of the money she had invested in her company, Traction Communications. Ms. Hamling told her she had $25,000.00 worth of credit card debt between two different cards. She owed 1 credit card $11,500.00 and $13,500.00 on a second card. Ms. Smith stated she gave Ms. Hamling some advice on how to approach the credit card companies to renegotiate the interest rates or lowering the payments. Ms. Hamling told her that her husband was unaware of her financial situation. They talked about it a couple more times and Ms. Hamling told her one of the banks would work with her but not the other. In June 2007, Megan told Kirsten she would send her a check for $11,500.00 to pay off her credit card and to focus on the other card. They didn't discuss interest or a repayment plan. Until this day, Kirsten has never paid her a "dime".
In July 2007, Ms. Smith was in Denver on business when she visited Ms. Hamling at her house.

She was shocked when she saw that Ms. Hamling had brand new stainless steel appliances and a new granite countertop. She couldn't believe she had just written a check to Ms. Hamling for $11,500.00 who told her she was in financial dire straits. A few months later, Ms. Hamling and her husband purchased a very expensive French bulldog puppy for her sister-in-laws wedding gift. Then a few months after that, Ms. Hamling purchased a car for her stepdaughter, Mattie who is Scott Hamling's biological daughter. Ms. Hamling followed that up with a trip to Napa, then to Mexico. Ms. Smith stated she was "flabbergasted" about the amount of expenses Ms. Hamling was spending money on but in the meantime not making any payments to her. Around October 2008, Ms. Smith spoke with Ms. Hamling and finally asked her when she could expect to her to start repaying her. Ms. Hamling told her she would need approximately 6 more months. Ms. Smith clarified this would be March of 2009 and Ms. Hamling agreed.

In March 2009, Ms. Smith asked Ms. Hamling how she stood and Ms. Hamling told her she would need a few more months. She stated things hadn't fallen into place like she thought it
would. Over the next couple of months they have little contact, which was rare. Ms. Smith stated they used to talk on the phone at least two times a day for years. In June 2009, she was informed that someone had donated a Patrick Dempsey race car item for auction, This item allowed you to meet Patrick Dempsey and hang out in his race car pit. Ms. Smith thought it was donated by Libby "Anschutz" Brown, daughter of Phil Anschutz and it was supposed to take place sometime in June or July of 2009. This was put on a celebrity auction website called charity buzz. Ms. Smith then read your affiant the e-mail threads listed below:

Page 44

"----- Forwarded Message "From: Kirsten Hamling <kirsten@,traction-communications.com>" "To: megan smith <seattletooc@yahoo.com>" "Sent: Tuesday, .Tuly14, 2009 3:55 PM" "Subject: Re: Will call you later today"

"I appreciate your sympathy and yes, two years is a long time, but I wasn't anticipating a recession to happen during the time that you loaned me the money and now. I understand that you're in a very uncomfortable position and I can't believe that after all this time, you can't be more patient. My God, how forgetful one can be. Years ago, I thought I was more than generous to host you on numerous nights during the week, sharing my bed, and have you live in my apartment whenever I traveled. I never asked for anything from you then. I never once said no over the years as 1knew you needed a place to stay." "I haven't had a paycheck in 4 months, so paying you $11,500 in 30 days is not an option. Scott's business has changed dramatically due to new rules that apply to appraisers and now most ofhis work is coming through a computer as he doesn't have direct relationships with vendors any more." "I'm sure you look at my Facebook page and wonder why Mary has a party at our house. That's easy to explain - her friends brought all the food and booze and we just provided the venue - for just 8 of us. Doesn't matter. I should have never accepted the loan from you and will pay you back when my business can sustain making payments to you." "On 7/13/09 10: 19 AM, "megan smith" <seattletooc@vahoo.com> wrote;" "Hi Kirsten," "I've not heard from you as you indicated 1would below, therefore my response to your email is as follows:" "I am truly sympathetic to the situation you are in, believe me, Having said that, it's now been over two years since I loaned you $11,500 to payoff a credit card -- a loan that also saved you thousands of dollars in credit card compound interest payments." "I am truly shocked that you have never made any sort of good faith payments at all and that I've been put in the awkward position of having to bring this topic up several times now."

Page 45 "I am requesting that you repay me the $11,500 by August 13, 2009 -- 30 days from today. I am not asking for interest or anything beyond tile principle loan balance." "I would recommend you look at other resources available to you for the funds needed to repay the loan and discussing it with Scott if your business revenue cannot be the source."
"I am hoping you can appreciate the extremely uncomfortable position it's put me in to have to

write such an email, but you've been telling me since last November that you'd repay me and I feel that I've been more than patient." "I am traveling and will be in meetings through Wednesday, I'll look for a response when I'm back Wednesday night." "Megan" "From: Kirsten Hamling [mailto: kirsten@traction-communications.com]" "Sent: Monday, July 06,20099:41 AM" "To: Megan Smith" "Subject: Will call you later today" "Hi," "I got your message and will call you later today. The Patrick Dempsey auction package didn't sell at alL The bidders backed out and we priced it lower and it didn't go. Business is still low and I don't have any good news right now. You're on my mind a lot and 1promise that as soon as the market picks up and I get more business, that r will pay you back."

"1 hope all is well with you."
"Kirsten" "'---- Forwarded Message" "From: Cheryl Thompson <cthompson({:Ucharitvbuzz.com>" "Date: Mon, 22 Jun 2009 16:32:23 -0400" "To: 'Kirsten Hamling' <kirsten@traction-communications.com>" "Subject: No takers on Patrick Dempsey" "Hi Kirsten," "I've contacted all the bidders and everyone has made plans already, I'll put it back up online

Page 46 today with a reserve of$3000. We'll keep it posted until Friday at noon, OK?" "Cheryl Thompson" "Auction Specialist" "Phone 203.226.8306" "Fax 203.621.3092" "cthompson(£V,charitvhuzz,com <cmarshal1@charitybuzz.com>" ,,------ End of Forwarded Message" Ms. Smith stated that Ms. Hamling had implied thiswas the way was going to attempt to pay her in some manner. She didn't have any specifics and confirmed Ms. Hamling never actually told her this was how she was going to pay her back. Ms. Smith stated she never responded to Ms. Hamling's final e-mail and has had no contact with her since July 14, 2009. Ms. Smith believes the money that was supposed to have been raised with the Patrick Dempsey item was intended to pay her back for a personal loan instead of going to FUFK. Your affiant asked Ms. Smith to clarify why she thought Ms. Hamling was going to use the money to pay her back. She told your affiant to look at the first e-mail from Cheryl Thompson and stated why would Ms. Hamling forward this to email to her unless she was intending to use the money to pay her back? In August 2007, Ms. Smithremembered when Libby Brown and her husband invited Mr. and Ms. Hamling and their kids to San Diego, California for a triathlon on their private jet. She stated they all met up one evening for drinks at the St. Regis Hotel in Monarch Bay. There were a total of 912 people having cocktails and Ms. Hamling paid for the tab with a Wells Fargo Credit Card. Ms. Smith was "flabbergasted" because the bill had to have been around $400-$500 dollars. She remembered telling her boyfriend at the time, she was speechless that Ms. Hamling would pay the bill when she couldn't make a "token payment" to her. I checked the FUFK statement and there was no record of this charge. Ms. Smith stated every time she was in Denver, Ms. Hamling would use her Wells Fargo Credit Card to pay at the grocery store and nail salon. Your affiant pointed out a charge on September 12, 2007 to Ella Blue Inc., for $521.90. She stated this was a clothing store owned by a friend of Ms. Hamling.

Page 47 Ms. Smith believes Ms. Hamling's husband, Scott has been living with his head in the sand. She stated Scott is a residential appraiser and wasn't making "huge bucks", She stated Hamling and her husband would hang around influential people and once they got their "useful connections, they moved on to the next people". She believed Hamling always lived beyond their means. She stated that Ms. Hamling made a lot of money when she worked for EarthLink and the company went public. She mentioned that Ms. Hamling and Scott paid over $100,000.00 for their wedding 10-11 years ago. Ms. Smith thought this was ridiculous considering they didn't come from money and they weren't multi-millionaires. Ms. Smith ended by stating she was surprised when she heard the news about FUFK and Ms. Hamling and "thought no way in hell, but you never know". During the investigation your affiant spoke with Special Agent in Charge, Jim Milne and Special Agent Charles Schlaufman with the Criminal Investigations Section of the Colorado Department of Revenue. Agent Milne confirmed that none of the income Ms. Hamling received from FUFK was included on her Colorado income tax returns for 2007, 2008 and 2009. Agent Milne also confirmed Ms. Hamling did not file income tax returns for 2010 or 2011, even though she was required to do so. Based upon the following amounts, your affiant asked Agent Schlaufinan to compute the additional amount of Colorado income tax Ms. Hamling would owe for 2007 through 2009 for the unreported income:

.. .. ..

2007-Unreported income Tax Due 2008-Unreported income Tax Due 2009-Unreported income Tax Due

$37,991.36 $1,635.00 $75,520.00 $3,520.00 $48,048.00 $1,858.00

The total amount of money currently owed to the State of Colorado for 2007-2009 is $7,013.00. As of June 5,2012, the total amount of money stolen by Ms. Hamling from FUFK is $243,399.12. Below is total amount of restitution Ms. Hamling currently owes:

Page 48 Amount $174,274.29 $37,422.00 $8,963.00 $22,739.93 $7,013.00 $250,412.22 Based on the foregoing, your affiant respectfully requests that an At Large Warrant be issued for the arrest of KIRSTEN HAMLING, DOB: 711811964 for Theft in violation of 18-4-401(1),(4), C.R.S., Theft in violation of 18-4-401(1),(4), C.R.S., ·Theft in violation of 18-4-401(1),(4), C.R.S., Theft in violation of 18-4-401(1),(4), C.R.S., Theft in violation of 18-4-401(1),(4), C.R.S., Theft in violation of 18-4-401(1),(4), C.R.S., Theft in violation of 18-4-401(1),(4), C.R.S., Theft in violation of 18-4-401(1),(4), C.R.S., Theft in violation of 18-4-401(1),(4), C.R.S., Theft in violation of 18-4-401(1),(4), C.R.S., Theft in violation of 18-4-401(1),(4), C.R.S., Theft in violation of 18-4-401(1),(4), C.R.S., Theft in violation of 18-4-401(1),(4), C.R.S., Attempt To Influence A Public Servant in violation of 18-8-306, C.R.S., Charitable Fraud in violation of 6-16-111(1)(£),(2), C.R.S., Charitable Fraud in violation of 6-16111(l)(g),(2), C.R.S., Charitable Fraud - Three Contributions in violation of 6-16-111(1)(e),(3), C.R.S., Filing A False Tax Return in violation of 39-21-118(4), C.R.S., Filing A False Tax Return. in violation of 39-21-118(4), C.R.S., Filing A False Tax Return in violation of 39-21118(4), C.R.S., Failure To File Return Or Pay Tax in violation of 39-21-118(3), C.R.S., Failure To File Return Or Pay Tax in violation of 39-21-118(3), C.R.S. and Charitable Fraud in violation of 6-16-111 (1)( e),(3), C.R.S ..

I affirm this information to be true and correct.





Subscribed and Sworn to before me this City and County of Denver, State of C~lorado.. My commission expires








,2012, at the


'--.,~.~-.- .'

NOTARY PUBLIC 201 West C61fax Ave., Dept. 801 Denver, CO 80202


'- -\

You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->