Mark Reynolds, the former captain of the Navajo County Sheriff’s Office Hashknife Posse, has lashed out against the sheriff’s office and the board of the newly formed sheriff’s search and rescue auxiliary group, Navajo County Hashknife Sheriff’s Posse Search & Rescue, by filing a lawsuit against the auxiliary organization and its board members.
The lawsuit cites multiple charges including trademark infringement, false association, false designation of origin, false advertising, trademark infringement, trademark dilution, injury to business reputation, unfair competition, unjust enrichment and intentional interference with prospective business advantage.
Reynolds has two non-profits, Navajo County Sheriff’s Posse, Inc. (organized in 1984), and the Hashknife Pony Express (organized in March of this year). Despite the names implying that these organizations represent the long-standing auxiliary organization formed as part of the Sheriff’s Office, and that private and public funds provided to the organization were being used to further the search and rescue operations and promote what the Hashknife Posse represents to communities in the area, specifically the City of Holbrook where the group originated in 1958, there have been indications that funds were instead funneled into Reynolds’ personal non-profit organizations for private use.
In May, the Navajo County Attorney’s Office issued a letter to Reynolds which stated that the organization has strayed from its mission and has “turned into a fundraising organization, and an annual mail carrier organization.”
A portion of the letter pertains to the corporate veil, which is an important concept in business law. Corporations enjoy certain privileges in America. Included in this is owners of corporations can shield themselves from liabilities brought on from their corporation. However, a mingling of personal and business funds is referred to as “piercing the veil,” which removes the owners shield of liability, meaning they could be personally responsible for debts and other liabilities from the business.
It can also have large tax implications and can even cause a nonprofit to lose its tax-exempt status. The letter from the County Attorney’s Office also makes it clear that Reynolds was no longer authorized to use any of the county’s trademarks, use of the sheriff’s office name or branding, any badges or seals or represent himself as being affiliated with the sheriff.
The letter also notes that the Sheriff and the Navajo County Board of Supervisors, have exclusive use over the name of the Sheriff’s Office and that Sheriff Clouse is receding the Posse and Hashknife’s use of the name Navajo County Sheriff’s Office, Navajo County, and any use of his office name, badge, seal, insignia, and any other affiliation with his office.
The lawsuit filed by Reynolds appears to be a reply to those accusations, with Reynolds claiming that the reformation of the posse and the efforts by the county are interfering with his personal financial gain.
The lawsuit claims that the Hashknife trademarks were, “assigned to and assumed by” Reynolds’ group from the organization that came before them, which would be the organization under former Sheriff Marlin Gillespie, but there is no evidence to support that statement noted in the lawsuit.
Reynolds filed the lawsuit against John Turley, Auxiliary Volunteer Program Manager for the Sheriff’s Office, and former members of Reynolds organization and newly appointed board members of the new organization including Robert Black, Gregory Long, John Wehrman, and the two organizations they created under the expressed permission of the sheriff’s office. The wives of those men are also named in the lawsuit, which claims the women benefited from the trademark infringement by way of being married to the men.
Wehrman, upon being presented with the lawsuit, immediately resigned from the authorized organization, noting he could not afford the legal fees. While an unnamed outside law firm will be representing the Navajo County Hashknife Sheriff’s Posse Search & Rescue and the board members listed in the lawsuit, Navajo County Attorney Brad Carlyon stated that if approved by the Navajo County Board of Supervisors, the bill for those services will be footed by the county.
