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Massachusetts Arraigns Five for Telemarketing Fraud

Accused of using fraudulent charity drives to scam victims

September 4, 2008
A Massachusetts state court has arraigned five men on charges they used fraudulent telemarketing practices to deceive over 1,000 donors to police and veterans' charitable organizations and then allegedly using those funds for their own personal use.

All five men pled not guilty and were released on personal recognizance.

Massachusetts Attorney General Martha Coakley began an investigation in August 2006 after the matter was referred by a veterans' charitable organization. In addition, the Attorney General's Non-Profit/Public Charities Division had also received multiple complaints.

Investigators discovered that between August 2006 and January 2008, telemarketers from CMR Marketing allegedly engage in fraudulent fund-raising telemarketing schemes to raise money for two charities: Veteran's Charitable Foundation (VCF), of Boynton Beach, FL, and a retired police officers organization. Much of the money given by donors never made it to the veterans and retired police officers it was intended to benefit. Authorities allege that, in total, over 1,000 donors were defrauded and well over $100,000 in donations were misappropriated.

Authorities said they also learned that CMR had a contract to raise funds for the Retired Boston Police Officers' Association (RBPOA) beginning in December 2006. Under CMR's contract with RBPOA, CMR would solicit donations from potential donors, pick up the donations, and deposit them directly into RBPOA's bank account.

Two of those indicted allegedly stole a large portion of the donations they solicited and lied to RBPOA about the donations they received, the complaint alleges. Investigators say the defendants fraudulently received "donations" such as hotel rooms from donors, and used these donations for their own purposes without the authorization of the RBPOA.

Most police and firefighter organizations say they never employ telemarketers to raise money, and that if consumers receive such calls, they are in all likelihood fraudulent.

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