Thursday, June 13, 2013

Judge Orders Company to Pay $3 Million for Sham Fundraising

Yesterday we blogged about the nation's 50 worst charities.  We wondered just what can be done to stop these organizations from taking advantage of an unsuspecting public.  As if in answer to our query, Newsday is reporting that a New York judge has ordered a fundraising company that duped people into giving money to a sham breast cancer charity to pay $3.1 million in restitution. Nearly all of that money will be given to legitimate breast cancer charities through a fund set up by New York State Attorney General, Eric Schneiderman, who brought the action against the Lindenhurst, New York-based Campaign Center, Inc., and its principal, Garrett Morgan of West Islip, New York.

Labelling charitable fundraising scams as "among the lowest of the low," Attorney General Schneiderman praised the decision by New York State Supreme Court Judge Emily Pines.  According to Mr. Schneiderman, "This decision proves that New York fundraisers will be held accountable when they defraud the public and line their own pockets."  He went on to state that the charity played on people's emotions to get them to donate money in the hopes of fighting breast cancer, but little of the money ever went to research or medical services

Judge Pines' decision said that from 2005 to 2011, the Campaign Center raised $4.9 million on behalf of the charity but kept $3.9 million for itself. During those years, the decision continued, fundraisers, including the Campaign Center, raised $10 million for the Coalition Against Breast Cancer, but the charity only spent 4 percent of that on charitable purposes, according to the judge's decision.

Well, someone is doing something!

VEJ

http://lawprofessors.typepad.com/nonprofit/2013/06/judge-orders-company-to-pay-3-million-for-sham-fundraising-.html

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