Action News Jax Investigates: Wounded Warrior Project accused of lavish spending

On Tuesday, a CBS News investigation revealed lavish spending by a nationally recognized charity based in Jacksonville.

Wounded Warrior Project is under fire by former employees who say the group wastes millions in donor dollars on five-star hotels and booze.

“I'll be damned if I let them drink away the hard earned spending of Americans,” Erick Millette told CBS News.

Action News Jax reporter Catherine Varnum spoke with that whistleblower and he showed pictures of some of that lavish spending.

That evidence includes a video of a man identified as the CEO of Wounded Warrior Project, rappelling down the side of a five-star hotel during a conference paid for by the charity.

The whistle blower, who is a decorated veteran, told Action News Jax there were bar tabs of $2,500 dollars all paid for using money meant to help wounded veterans.

The television ads are well known: Veterans, heroes speaking on behalf of locally based Wounded Warrior Project, telling stories of wounded vets needing help.

“I was in a bad place. I was drinking myself to death. I was literally putting a gun in my mouth,” Millette said.

Millette served 2 tours in Iraq, earning a bronze star and Purple Heart. But the Army veteran also came home with a brain injury and PTSD. He turned to the Wounded Warrior Project for help.

“I thought it was the greatest thing. I really did,” Millette said.

After going on a retreat, he got a job as a spokesperson for Wounded Warrior Project, talking up the organization, even getting recognition from the president.

But after two years, Millette quit.

“I started to notice just how the donor money was being spent and I became more uncomfortable,” Millette said.

He showed us pictures of a Mexican mariachi band brought in for a party. In one video, Millette said CEO Steven Nardizzi can be seen rappelling down side of the Broadmore hotel in Colorado during an all-expenses paid conference for employees.

Millette said despite living just miles away, he attended mandatory training at One Ocean in Atlantic Beach four separate times.

Catherine Varnum: “You live in Jacksonville?”

Millette: “I live in Jacksonville”

Varnum: “And they made you stay?”

Millette: “I was required to stay in a hotel on site,” Millette said.

Varnum: “Do you have any idea how much money is being spent on what you called the glitz and glamour versus going to warriors?

Millette: “No I don't.”

"I think it’s an organization that's saying one thing and doing another. I think they're preying off the brave men and women who served this country,” Millette said.

Millette said he's not speaking out as a disgruntled former employee but as a voice for so many others afraid to speak up about out of control spending.

“There's a saying at Wounded Warrior Project, warriors call us, we don't call warriors,” Millette said.

According to tax records obtained by CBS News, spending on conferences and meetings went from $1.7 million in 2010 to $26 million in 2014. That's about the same amount of money the group spends on its combat stress recovery program.

Records on the organization’s own website show salaries for the top 12 employees totaled more than $2.7 million.

The group also posted on its Facebook page, saying in part, "Our salaries are consistent with industry standards and, rather than being excessive, have often fallen at the lower end of compensation paid at comparable organizations.

According to Charity Navigator, which tracks charitable giving, Wounded Warrior Project spent 60 percent of its donations on veterans. Other veteran organizations average 90 percent. On Facebook, the group responded to several people who commented on their page, saying that number is false.

We reached out to Wounded Warrior Project and received the following statement:

"The CBS News piece had numerous factual errors and misrepresented the good work Wounded Warrior Project does on behalf of this nation's injured veterans.

"Wounded Warrior Project leads the industry in transparency and reporting publicly our independently audited financial documents. Separate from our financials, we also make public all of our program information and impact metrics. These are readily available on our website for anyone to view. 

"Based on our most recently independently audited financial statements, 80.6 percent of total expenditures went to provide 20 services and programs for Wounded Warriors and their families.

"Wounded Warrior Project is a Gold Standard Better Business Bureau accredited charity.

"We provide programs and services to more than 83,000 wounded veterans. Wounded Warrior Project works every day to ensure our programs meet the needs of our wounded veterans. We just launched our Warrior Care Network to help provide world-class mental health care for wounded veterans. Warrior Care Network represents a $100 million investment to ensure warriors struggling with the hidden wounds of war get the help they need. We will commit $500 million to our Independence Program and Long-Term Support Trust – two programs that directly help the most severely injured veterans."

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