The good people of Pennsylvania lost 4.6 million here, The numbers just keep getting bigger and bigger.

May 20, 2009

Attorney General Corbett announces legal action against several deceptive charities as part of national "Operation False Charity" investigation

HARRISBURG - Attorney General Tom Corbett today announced that the Attorney General's Charitable Trusts and Organizations Section has taken legal action against three organizations, claiming to be charities, who are accused of using deceptive or misleading practices to secure contributions from Pennsylvania residents. 

"Bogus charitable pleas hurt every Pennsylvania resident, taking money that could be used to improve our communities and putting it into the pockets of unscrupulous fundraisers," Corbett said. "During our current economic downturn, legitimate charities need more assistance than ever, and we are committed to identifying and prosecuting people and groups who try to take advantage of the generosity of our citizens."

Corbett said that legal actions taken by the Attorney General's Office over the past several months are seeking restitution and penalties of more than $4.6 million from three groups accused of using deceptive fundraising practices. 

"These groups often claim to be raising money to help local organizations, including police departments, fire companies and veterans groups - sometimes implying that paid telemarketers are actually police officers, firefighters or veterans," Corbett said. "In most cases, contributions to these questionable organizations go out-of-state, providing little or no benefit to groups in the consumers' communities."

Corbett said the groups named in legal actions taken by the Attorney General's Charitable Trust Section include:

• The Publishing Group, Inc., of Charlotte, North Carolina, doing business as The Law Enforcement Times, The Drug Prevention News, The Volunteer Fireman, The Rescue Squad and The United Veterans' Report.  The lawsuit also named several telemarketers who sold advertisements for these publications.
  • Collectively, the individuals involved in this scheme have been ordered to pay $4,060,839.50 in fines, penalties and restitution. 
• Robert M. Friend and Shao Mei Wang, of Gig Harbor, Washington, operating as the Disabled Firefighters Foundation, the American Veterans Coalition and the National Association of Disabled Police Officers.
  • According to a January 2009 lawsuit, fundraising calls made to Pennsylvania residents generated a total of $528,000 in contributions, with no indication of any direct benefit to any local fire departments, police officers, veterans or children's burn camps operating in the state. The lawsuit seeks the return of those contributions along with fines and penalties.
• D.A.R.E. America, Inc., of Inglewood, California, along with Grand Slam Events and Liberty Events Group, Inc., of Norristown, PA.
  • An Assurance of Voluntary Compliance was filed on February 26, 2009, concerning allegations of misrepresentations during fundraising calls, failure to make proper disclosures to consumers and failing to properly register as a charitable organization.  The defendants pay $65,000.

Additionally, Corbett noted that the Charitable Trusts Section has another ongoing investigation involving a fundraising group claiming to be raising money for law enforcement services in Pennsylvania, in violation of the terms of a previous court settlement with the Attorney General's Office.  Detailed information about that investigation will be released in the near future.