Two non-profits and a breeder illegally sold bred designer puppies as rescue dogs to an animal shelter in New Jersey and to pet stores across the country in an effort to circumvent puppy mill laws, the state of Iowa alleges in a suit that aims to shutter the Iowa firms.

The lawsuit, filed on March 11 by the Iowa Attorney General Tom Miller, seeks to dissolve Hobo K9 Rescue of Britt, Iowa, and Rescue Pets Iowa and shut down J.A.K.’s Puppies, a for-profit breeder also based in Britt.

Hobo K9 Rescue sold at least 1,290 puppies to eight entities in New Jersey, California, Illinois and Florida from September 2016 through July 2018, according to a release from the Iowa Attorney General’s Office.

Twenty five dogs were sent to Shake A Paw Center for Rescue and Adoption, a 501(c)(3) nonprofit that provides animal rescue, shelter and adoption services and has locations in Green Brook and Union Township, Iowa Attorney General’s Office Spokesman Lynn Hicks said. Shake A Paw was not accused of any wrongdoing by the state of Iowa.

The puppies, which included Pomeranians, Shar-Peis, Alaskan Malamutes, Poodle-Yorkies and other breeds, were allegedly sold for $714,510, the suit stated.

“Puppy laundering” is the practice of using non-profit rescue groups to obscure the source of dogs, deceive consumers and circumvent puppy mill bans, Miller explained in the release.

Hicks said his office sent a subpoena seeking additional information to Shake A Paw and the organization’s attorneys responded by saying they “do not have to answer questions and don’t do business in Iowa.”

A woman who answered the phone at Shake A Paw referred questions for the organization’s owner, Jeffrey Morton, who she said was out of state. An email sent to Morton was not returned Tuesday night.

The suit states that the people who ran the entities in Iowa violated that state’s consumer fraud act. They include Hobo K9 Rescue President Jolyn K. Noethe, its treasurer Kimberly Dolphin and its secretary Megan Peterson.

Russell Kirk who serves as the president, secretary, treasurer and director of Rescue Pets Iowa was also named in the suit. Noethe, Dolphin and Peterson are also involved with J.A.K.’s Puppies, the state alleges.

“No matter where they live, consumers should not be misled about the source of the pets they buy,” Miller said in the release. “Puppy laundering obscures the identity of breeders who may have animal welfare violations or other problems.”

A 2018 investigation by the attorney general’s office revealed that Hobo K9 sold pure-bred puppies that it purchased from J.A.K.’s Puppies to the out-of-state pet shops, the lawsuit stated.

The breeder acquired the dogs from puppy mills, the state said.

After the attorney general’s office began their investigation, a “brand-new sham charity” called Rescue Pets Iowa Corp. was created by the non-profits and breeder in December, according to the lawsuit.

The state said its investigation showed that veterinary inspections of the dogs sold to California and other states showed that many were purebred and designer puppies.

In addition to shutting down the non-profits and breeders, the suit seeks a temporary injunction prohibiting any of the defendants from any “business or charitable activities involving the transfer of animals, and a permanent injunction against deceptive practices."

The attorney general’s office also seeks civil penalties of up to $40,000 for each violation and reimbursement to any customers who were sold a dog that they thought was a rescue.

Chris Sheldon may be reached at csheldon@njadvancemedia.com. Follow him on Twitter @chrisrsheldon Find NJ.com on Facebook.

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