‘Stolen Valor:’ Board members resign from veterans’ service dog organization

LANSING, Mich. (WLNS) – In a move meant to “dissolve” the Veteran Service Dogs Organization a husband-and-wife couple listed on state and federal filings as founding board leaders have resigned from the organization’s board. “Maybe we can dissolve this whole organization right now by resigning,” James Donnelly II told the 6 News Investigates Team.

He, and his wife Ann, said they were “blindsided” when the 6 News series “ Stolen Valor ” resulted in phone calls from impacted veterans. The couple sent their resignations to Lanam Aug. 12 by certified mail and provided copies to 6 News.

“Stolen Valor” revealed that Kirk Lanam, founder, executive director and board president of Veteran Service Dogs Organization in Howell, had embellished his military record and rank as well as claimed educational degrees that could not be verified. The reporting also revealed concerns about the training of the dogs in the service dog training program as well as concerns about the care of dogs in Lanam’s possession.

Lanam has not responded to 6 News Investigates Team requests for comment on the reporting.

But in a text message to the Donnelly’s, provided to 6 News by Ann, he advised the couple not to talk with anyone, particularly the media, about the organization.

“I would suggest not speakong [sp] to anyone… especially press,” Lanam wrote in a text to the couple. “They have a way of twisting whatever you say in a way to sensationalize whatever they want to run as a story. You know damn well how they work. Which is why I had said Nothing to anyone. I do not want my words misrepresented, misquoted, or misunderastood [sp].”

The Donnellys are not the only listed board members to quit.

Another man, who wanted to remain unidentified for the safety of his family, was also listed on state documents as a board member. He resigned more than two years ago out of concerns about aggressive dogs being brought through the training program.

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“Well, when I first told him, he said ‘OK,’” the former trainer and board member told 6 News. “And then someone pointed out that I was still on the LARA (MI Dept. of Licensing and Regulatory Affairs) website. So, that’s when I started calling him, texting him and emailing him. I got no response, except one text message that was ‘OK.’”

He even logged into the organization’s private Facebook group and posted his resignation along with his disaffiliation in the group – but that post was deleted by Lanam, who administers the group. The post’s existence was confirmed by letters submitted by several veterans to 6 News.

A week ago, an unsigned email was sent to veterans involved in VSDO explaining that Lanam was “stepping away” from the organization. But the 6 News Investigates Team has been informed Lanam has been signing ownership of dogs over to veterans as the organization’s executive director.

In a text message to the Donnellys he noted he would have to step away from the organization — after the email had been sent — and that the organization may have to be dissolved.

The Donnellys said they were unaware that another board member had resigned years earlier.

They also say they agreed to serve on the board because they were told they would not have to do anything. “I’m like, ‘yeah, I’ll serve on the board,’” James said. “He goes, ‘Well, you don’t have to – you don’t have to do anything. We’ll do a Zoom call and – not a Zoom call, but a meeting, a phone meeting, you know? But when we have to have a face-to-face, that’s fine. I think there was one meeting or one meeting phone call.”

The couple were told they would be “civilian” board members, and generally “silent.”

In the only meeting the couple attended as “board members,” they said they were not provided the organization’s bylaws, any financial reports or an agenda. They were unaware the organization was sued for eviction in 2022 or that a veterinarian sued the organization for unpaid bills earlier this year. In both cases, the people suing won by default — meaning Lanam, or the organization, did not appear in court or respond to court filings.

The couple also learned the organization had its tax-exempt status revoked by the IRS after reading a 6 News report.

Both were listed in executive positions on the board in state and federal filings. James was listed as the organization’s “vice president” and then as “treasurer.” Ann was listed as “secretary.”

Members of the nonprofit organization’s board take on the legal responsibilities of the organization.

The national organization BoardSource identifies the “fundamental legal duties of each individual board member,” as:

• Duty of Care — Each board member has a legal responsibility to participate actively in making decisions on behalf of the organization and to exercise their best judgment while doing so.
• Duty of Loyalty — Each board member must put the interests of the organization before their personal and professional interests when acting on behalf of the organization in a decision-making capacity. The organization’s needs come first.
• Duty of Obedience — Board members bear the legal responsibility of ensuring that the organization complies with the applicable federal, state, and local laws and adheres to its mission.

Explanation of responsibilities of board members from BoardSource

The Michigan Nonprofit Association declined an interview but directed 6 News to the BoardSource website.

6 News showed the Donnelly’s a copy of the only federal tax filing on file with the IRS for the organization — a 2019 Form 990. The filing listed James as Vice President and Ann — under her maiden name — as secretary.  “If I had saw that in 2019, I would’ve told Kurt, ‘Take me off the board,’” James said. “And I would have asked him to see that paperwork because he’s got me listed as V.P., I just found out today.”

James refers to Lanam as ‘Kurt’ because that is how he has always said his name.

“He never corrected me, so I’ve always said it that way,” he said by text.

The Donnellys met Lanam when they were looking for an electrician. Lanam was referred by a mutual friend and told the couple he was a master electrician. They paid him to conduct electrical work on a house and developed a friendship.

James is a union carpenter.

A search of the LARA licensing website returned no master electrician licensing for Kirk A. Lanam.

A spokesperson for LARA, the agency corporations are required to file paperwork with, tells 6 News it is an “administrative agency,” and that enforcement of the Nonprofit Corporation Act is “performed by the Michigan Attorney General’s Office.”

The spokesperson pointed out that Michigan law makes it a misdemeanor for a person to “knowingly make or file or knowingly assist in the making or filing of a false or fraudulent report, certificate, or other statement,” in filings. It is also a misdemeanor to knowingly “falsify or wrongfully alter books, records, or accounts of a corporation.”

Punishment for each violation is a fine of up to $1,000.

Danny Wimmer, press secretary for the Office of the Attorney General, sent the following statement in response to an inquiry into investigations being conducted by the agency.

“The Department of Attorney General has begun some informal inquiries into this matter,” Wimmer wrote. “I am not able to comment further at this time.”

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