Crooked Fundraisers Beware

March 31, 2016      Roger Craver

Eleven months ago we reported a case of nauseating fundraising fraud involving a rip off of $75 million. Eleven months later justice is done as a Federal Court deals out justice — and immense financial penalties.

First, a bit of background. Last May the U.S. government’s Federal Trade Commission joined by attorneys general in all 50 states and the District of Columbia filed suit against 4 cancer charities charged with scamming donors out of more than $187 million.

This is not a case of too much solicitation; it’s one of downright disgusting and outright fraud.

For a nauseating taste of this hustle, check out this piece in the Tampa Bay Times.

FraudAll four charities — the Cancer Fund of America, Children’s Cancer Fund of America, Cancer Support Services and the Breast Cancer Society — are run by members of the same family or their close business associates.

Three years ago Agitator readers were alerted to this scam in a series of posts — here, here, and here — triggered by a landmark investigative report titled America’s 50 Worst Charities by the Tampa Bay Times and the Center for Investigative Reporting.

As part of their exposé investigative reporters Kris Hundley and Kendall Taggart reported on the family behind this current scam — How One Family Turned Your Goodwill Into Their Livelihood. Read it and shudder.

Hallelujah! Yesterday both the Federal Trade Commission (FTC) and a Federal Judge came down — hard — on penalties for the fraudsters.

You can download the FTC press release here and the judge’s decision here.

Apart from the remarkable outcome of justice well done and exemplary cooperation among the states’ charity regulators, there’s an important WARNING for any professional fundraiser — telemarketer, direct mailer, online firm, you name it — that aids and abets such fraud.

These firms are also liable for damages and the results of the fraud tbey helped perpetrate. The fees you’ve been paid can be clawed back by the regulators and the courts.

Justice will be done.

Roger

 

 

One response to “Crooked Fundraisers Beware”

  1. Dennis Meyer says:
    March 31, 2016 at 9:45 am

    Roger,

    Thanks for highlighting these efforts. Finally, some coordinated action. It’s a start, but many shysters remain.

    Unfortunately, a few bad apples in the sector make these frauds possible by their collusion.

    Keep agitating!

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