Pennsylvania Attorney General Kathleen G. Kane’s office today announced a recent Commonwealth Court ruling imposed a civil penalty of $10.8 million on two individuals who will be barred from soliciting charitable donations in Pennsylvania until the penalty is paid in full. The two men were previously sued by the Office of Attorney General following allegations they deceptively collected charitable donations for fundraisers organized by firefighters unions in the western part of the state.
The court’s ruling concerns defendants Phillip Howells and Martin Vernello, as well as their corporations, Phil’s Productions, LLC and MVP Productions, LLC. The $10.8 million penalty includes restitution for consumers, civil penalties and legal costs.
According to legal filings in the case, the defendants operated commercial telemarketing firms based in Ohio that sold concert tickets and advertising on behalf of local firefighters unions located in McKeesport, New Castle, Sharon and Butler.
Telemarketers would call consumers and solicit the sale of tickets to the concerts claiming proceeds would benefit the firefighters unions and local fire prevention efforts. However, telemarketers made a series of misrepresentations.
Telemarketers led consumers to believe they were firefighters or police officers when they were not. They also made misrepresentations about how much they were paid.
Other misrepresentations included telemarketers erroneously stating that 100 percent of the proceeds that came from donations went to charitable efforts such as scholarships for children pursuing law enforcement and food banks. Further misrepresentations included the false statement that charitable contributions would allow handicapped children to attend concerts for free.
The Office of Attorney General also alleged the defendants were not properly registered to solicit charitable donations in Pennsylvania.
This case was handled on behalf of the Commonwealth by Senior Deputy Attorney General Michael T. Foerster of the Office of Attorney General’s Charitable Trusts and Organizations Section. Civil Investigator Matthew A. Hathaway led the Pennsylvania investigation.
The Commonwealth worked closely with the Ohio Office of Attorney General on this investigation. Attorney General Kane thanked the Ohio Office of Attorney General for its diligent work on the case.
The Pennsylvania Office of Attorney General’s Charitable Trusts and Organizations Section is tasked with ensuring that charitable assets are being used appropriately and files related legal actions when necessary. The Section also oversees nonprofit mergers and reviews the actions of executors and trustees in cases involving wills and trusts that contain charitable gifts.
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