States Look More Closely at 'Charity' Groups

Intentions aren't always so good

July 15, 2008

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Who can say no to supporting a good cause? But what if the donations are lining the pockets of a smooth operator and not getting to the people for whom they are intended?

At least two states, Arkansas and New Jersey, have recently cracked down of these "charity" schemes.

In Arkansas, Attorney General Dustin McDaniel has settled a consumer protection lawsuit filed against American Veterans Coalition. In December of 2007, McDaniel filed suit against the Washington-based group, claiming that it had deceived Arkansas residents during solicitations for donations. McDaniel alleged that less than one percent of the donations raised were actually used to support veterans and no support whatsoever had been given to Arkansas veterans.

Meanwhile, the New Jersey Division of Consumer Affairs is moving to revoke the registration of a charitable organization that purportedly raised funds to aid rescue workers who sustained health problems after responding to the September 11, 2001 attack sites.

The provisional order of revocation would bar the "9/11 Rescue Workers Foundation, Inc." of Kinnelon, N.J. from operating as a charity or soliciting donations in New Jersey. The provisional order also would bar Frederick Parisi, the founder, president and trustee of the organization, from serving on the board of or working in certain positions for any charitable organization operating in New Jersey.

Parisi pled guilty last month to impersonating a Special Agent of the United States Secret Service.

In addition, the state alleges that certain false statements were made on the organization's initial registration form submitted in August 2007.

In Arkansas, the American Veterans Coalition and its operators were ordered to pay the state the amount of money collected from Arkansas residents. In addition, they will be forbidden from soliciting donations in Arkansas for five years.

"We are glad that through our efforts we were able to fulfill the desires of Arkansans who donated to this organization, and that we can continue to support those who have given so much to defend our country," said McDaniel.

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