By Mark Huffman
ConsumerAffairs.com
May 21, 2009
The Federal Trade Commission is joining with a number of states to
crack down on fraudulent telemarketers claiming to help police,
firefighters, and veterans.
The FTC, along with 61 Attorneys General, Secretaries of State, and other law enforcers of 48 states and the District of Columbia, have launched Operation False Charity, taking enforcement actions against 32 fundraising companies, 22 non-profits or purported non-profits on whose behalf funds were solicited, and 31 individuals.
The FTC and state agencies also released new education materials, in both English and Spanish, to help consumers recognize and avoid charitable solicitation fraud.
In these difficult economic times, Americans want to make every contribution count, said FTC Chairman Jon Leibowitz. The good news is theyre still being generous and donating to charitable organizations, including those that support our police officers, firefighters, military families, and veterans.
"The bad news is that some unscrupulous operators have seized on this goodwill to make a quick buck. The actions were announcing today demonstrate that federal and state partners will find charity scammers and we will stop them, Leibowitz said.
All of us share a deep trust and respect for our law enforcement officers, firefighters, and military service members, said Attorney General Chris Koster of Missouri. The attorneys general across the country will not stand idly by while greedy telemarketers take advantage of that trust and respect.
In Massachusetts this week, Attorney General Martha Coakley filed two separate actions this week against four professional solicitors and the two charities they fundraised for.
The first action alleges that Our American Veterans, a Georgia-based organization; its president, Sydney Young; and its professional fundraiser, Golden State Marketing, Inc., a Delaware corporation with offices located in New Bedford, engaged in deceptive solicitation practices in violation of state Consumer Protection laws.
The complaint alleges that the defendants misled donors into believing that fundraisers were calling on behalf of veterans groups based in Hingham and Hull and that their donations would benefit veterans in those communities.
The complaint further alleges that the defendants failed to disclose their status as professional fundraisers, and failed to honor requests to discontinue its solicitation campaign to raise funds for disabled and indigent veterans. A preliminary injunction hearing has been scheduled in this case for June 9, 2009.
In the second action filed in court, the Attorney Generals Office alleges that Disabled Police Officers Counseling Center, Inc., a Florida-based charity; its president, Terry Morrison; and its professional fundraisers, Patrick Kane, doing business as the Kane Marketing Group, Mark Hemphill, doing business as Infiniti Marketing Firm, and James Vincent, doing business as Northeast Advertising, misled potential donors into believing that fundraisers were volunteers calling on behalf of local disabled police officers.
The complaint also alleges that the defendants in this lawsuit did not disclose their status as professional fundraisers, did not disclose the charitys Florida address, and did not file fundraising reports for their fundraising campaigns, all of which are required by law. A preliminary injunction hearing has been scheduled in this case for June 19, 2009.
Given todays economic climate, charitable organizations are already struggling to secure funding for their missions through donations, Coakley said. Fraudulent solicitors not only take money away from legitimate organizations, but they also undermine the public's confidence in legitimate charitable fundraising. Fortunately, through some simple research and good common sense, donors can prevent much of this fraud, and ensure that donated funds go to support the worthy causes, rather than unscrupulous individuals.
