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Wounded Warrior Project says it takes "very seriously" allegations of lavish spending

JACKSONVILLE, Fla. — The Jacksonville-based Wounded Warrior Project responded to allegations of lavish spending via a statement issued Monday.

A CBS News investigation, published Jan. 26, revealed that Wounded Warrior Project spending on conferences and meetings went from $1.7 million in 2010 to $26 million in 2014.

The organization, which has offices on the Southside, is the former employer of Erick Millette, who 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.

After going on a retreat, he got a job as a spokesperson for Wounded Warrior Project. But after two years, Millette quit.

"I started to notice just how the donor money was being spent and I became more uncomfortable," Millette, who lives in Jacksonville, told Action News Jax.

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.

Its CEO, Steven Nardizzi, is paid nearly $500,000 a year, a figure he noted is less than less than “1/10 of 1 percent of the donations that come in.”

In its statement the Wounded Warriors Project defended itself by saying: “For more than a decade, the Wounded Warrior Project ("WWP") has operated with the sole purpose of honoring and empowering the courageous men and women who have been injured in service of our country.

"The Board takes very seriously the concerns that have been raised in recent days and is in the process of retaining independent advisors to conduct a thorough financial and policy review of the concerns. We remain steadfast in our commitment to our warriors and supporters and will ensure that the organization is effectively fulfilling this important mission."

The WWD noted that the “positive impact on the 83,000 wounded warriors.”

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.

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