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AUSTIN (AP) — A Florida-based charitable group meant to assist veterans has been banned from Texas after most donations ended up out of state.

Attorney General Ken Paxton says the Veterans Support Organization agreed to stop soliciting donations in Texas and will pay $250,000 in penalties.

The settlement announced Wednesday in Austin also requires the Veterans Support Organization to pay $275,000 to help needy Texas veterans.

Texas in March 2014 sued the organization and several of its directors. Investigators say the group raised more than $2.5 million in Texas from 2010 to 2012, but most of the funds were diverted to Florida and Rhode Island, where the organization was incorporated.

Donors were told their contributions would benefit veterans in Texas.

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