Vicente Fox Wants Your Pension!

Fund-Raisers Use Scare Tactics to Shake Down America's Seniors

By Joseph S. Enoch
ConsumerAffairs.com

August 14, 2006

Senior Scams • Vicente Fox Wants Your Pension! Or Does He? • Seniors Targeted by Bogus 'Census' • Social Security's "Secret Stash" • Anti-Crime Group Alarmed At Scams Targeting Seniors --- • Scam Alerts • News for Seniors

An organization known as the Civic Council has been tugging at the patriotic emotions of the elderly, mailing aggressive letters requesting donations to keep Social Security out of the hands of illegal aliens. But it's not clear what the money is really used for or even who the Civic Council is.

"I saw my husband getting ready to mail a check off somewhere," Arlene Patera of Puyallup, Wash, said. "When I read the letter I knew this had to be a scam." The National Crime Prevention Council recently warned that scams are increasingly directed at senior citizens.

The letter includes a $1 check and then requests that the individual not cash the check but instead return the check plus $19 to help gather petitions that will, "Help stop Vicente Fox from stealing the money you've worked for all your life."

The letter continues for four pages, bashing President Vicente Fox of Mexico while flirting with racist innuendo reminiscent of that earlier civic council known as the Ku Klux Klan. Fox, who is part Irish, is a Harvard graduate and was a Coca-Cola executive before being elected president of Mexico in 2000. His term in office ends Dec. 1 and, by law, he is not allowed to succeed himself.

"Vicente Fox wants to hand out American Social Security Money to his gangs of Illegal Aliens who've 'come home' to Mexico," the letter states. "Vicente Fox is scheming to take the hard-earned money you've saved in Social Security and give it to Mexicans who laugh in the face of our Immigration Laws."

"I'm scared," 67-year-old Patera said. "I want to know how these people got my address."

The letter is signed by Carl M. Hagen, executive director. There is no phone number, just a P.O. Box in Frederick, Md., for people to mail their donations. However, on the check is another address in Frederick.

ConsumerAffairs.com tracked down the address. It led to Cashbox LLC, a company that receives the mail for the Civic Council and processes the contributions.

"The Civic Council is not a scam," said Cashbox CEO Kathleen Clem. Clem said the Civic Council raises money to help pass H.R. 858, the "Social Security for Americans Only Act of 2005" -- a bill that aims to keep Social Security from going to illegal immigrants who work in the U.S. and contribute to Social Security when taxes are taken out of their paychecks.

Is It True?

Older Americans who are counting on Social Security to help them through their old age may be alarmed by the news that illegal immigrants are plotting to loot the Social Security Trust Fund. It sounds scary but is it true?

In a word, no. In fact, the opposite is true: Undocumented workers, those without legitimate Social Security numbers, are paying into the Social Security system with little to no hope of ever drawing any benefits. Since they must use fictitious Social Security numbers, money withheld from their earnings goes into a little-known aspect of the Social Security behemoth known as the Earnings Suspense File (ESF).

No one -- Fox included -- has proposed giving undocumented workers benefits paid for by others. Instead, HR 858 would keep undocumented workers from getting benefits based on what they themselves have paid into the Social Security system.

The ESF is, to be blunt, Social Security's "profit center." It continues to accrue roughly $6 billion a year, with the total as of 2005 sitting at $519 billion. There are those who would say undocumented workers are thus in a position not much different from slavery -- performing work that provides benefits to others but not themselves.

Who Are They?

So who, exactly, is the Civic Council and what role, if any, does it play in this largely illusory debate?

Thomas Cromwell

Clem would not share any contact information for the Civic Council and said she had no idea who Carl Hagen was. She said a Thomas Cromwell was the executive director.

Legitimate advocacy organizations like AARP, the National Rifle Association and thousands of others large and small, have well-defined programs that include lobbying, grass-roots organizing and consumer education. Though many are shills for special interests, others vigorously represent their constituencies and are deserving of their members' support.

Other than its inflamed fund-raising rhetoric, it's not clear how the Civic Council goes about pursuing its supposed goals.

Clem promised she would have either Cromwell or some other representative from the Civic Council call ConsumerAffairs.com to answer our questions. Weeks went by and we didn't hear anything. We left more than 10 messages, but Clem never responded. During this time ConsumerAffairs.com also called the number listed on www.civiccouncil.com, but it led to an answering machine. We also visited the D.C. office listed on the website, but found it occupied instead by a law firm.

The organization's Web site says that Cromwell is the founder and past director of the London Institute in Alexandria, Egypt, the former editor and publisher of "The Middle East Times", and the president of East-West Communications, an "international business consulting firm" that says its primary expertise is in "branding nations to compete globally."

"Our primary clients are governments and their embassies in Washington," East West Communications' Web site says. The company says its services include the production of paid advertising sections in The Washington Post. It claims to have produced special sections for nations including Cote d'Ivoire, Cyprus, Greece, Kazakhstan, Korea, Liberia, Peru and Ukraine.

"East West Communications has developed several packages that give governments the best 'bang for their buck' using Post media, including the daily newspaper, the National Weekly Edition, the Sunday Magazine and washingtonpost.com, for a total audience of some nine million. The Post offers significant discounts to embassies and governments," the Web site claims.

What this has to do with protecting the retirement savings of older Americans isn't entirely clear.

ConsumerAffairs.com examined the latest tax forms for the Civic Council.

They revealed that in 2004, there were five Civic Council officers, none of whom was Carl Hagen. Two of the officers, including Cromwell, drew $30,000 salaries. The nonprofit had total revenue of $2.7 million, of which all but $8,000 came from contributions. Its expenses include more than $1 million spent on "mailing services" and "caging" -- presumably to Cashbox. There was also $266,832 for "professional fundraising fees" of which there is no further explanation.

What Does It Do?

Congressmen who introduce bills the Civic Council "supports" claim to have no idea what the group is or what it does.

Cromwell with Rep. Goode

The Civic Council's website, which, according to Archive.org, has hardly changed since December 2003, has an awkward photo of Cromwell standing next to Rep. Virgil Goode (R-Va).

"Virgil Goode said he vaguely remembers a man coming up to him a few years ago to pledge his support and ask for a photo," Linwood Duncan, Goode's press secretary, said. "I've talked to staff members who have worked here more than three years and no one has heard of the Civic Council."

Rep. Ron Paul (R-Texas), who introduced H.R. 858, was unaware of the Civic Council as well, said Paul spokesman Jeff Deist.

"I asked a number of people in the office and no one's heard of the Civic Council," Deist said.

Deist said the bill is a long way from passage: "It currently is standing in front of the Social Security Subcommittee," he said. "It's tough sledding from here."

Deist said consumers should not mail money to get a bill passed

"Groups can use any bill to try and get donations," Deist said. "There's a lot of groups out there trying to profit on senior issues ... If this bill is important to someone, they should contact their local Representative and ask them to cosponsor it."

Other organizations that deal with issues affecting seniors professed ignorance of the Civic Council and the Council of Seniors.

"We don't know anything about them," said Scott Parkin of the National Council on Aging. "As far as I know they're not a member of any (aging) leadership council organizations."

After questions about the Civic Council went unanswered, ConsumerAffairs.com traveled back to the Cashbox offices. This time Clem did not defend the actions of the Civic Council.

"I don't know what they do," she kept repeating. "All I do is open their mail."

Consumers who wish to have their names taken off the Civic Council's mailing list should call Cashbox at 301-631-1010 or write to:

550 Highland Street
Suite 403
Frederick, MD 21701

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