Category: Federal/State Actions

Press Release related to a state action against a charity.

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Maryland – Settlement Announced in Cash on Delivery Charity Scam

Man Permanently Banned By Maryland Officials From Charitable Soliciting After Using Fake Law Enforcement Charities to Solicit Donations

April 17, 2019 – Maryland Attorney General Brian E. Frosh and Secretary of State John C. Wobensmith today announced a settlement agreement in a case against Stephen D. Everhart, Lion Fundraising, Police Journal and Fire Yearbook, and Lion Fraternal Order of Police Assistance Fund LLC.

An investigation into Everhart and Lions Fundraising revealed that the scam dated back several years, and that Everhart used the donations instead to pay himself, and not to benefit any real law enforcement or fire organization. Everhart used the following fake names to solicit for donations: McKimmie-Catterton Maryland Police Post 2979, Anne Arundel Police Post 2979, Firefighters Association, Maryland Fire Post, Coalition of Police, Anne Arundel Police Stronger Than Drugs, D.C. Police Assistance Funding, D.C. Police Association Blue Santa Drive, FOP Fundraising, Lion Charitable Fundraising, Lion Charitable Funding, Lion Fraternal Order of Police, Lion Police Fire Veterans Fundraising, Lion United Funds, Maryland Law Enforcement Fund, Police Fire Post, Police Fire Veterans Assistance Fund 2979, Police Fire Veterans Assistance Fund, and Veterans of Foreign Wars Post 2979.

“Mr. Everhart’s actions hurt real charities,” said Attorney General Frosh. “He preyed upon the public’s goodwill and desire to support law enforcement and first responders so that he could line his own pockets.”

As a result of the investigation, on September 28, 2018, the Secretary of State issued a cease and desist order citing multiple violations of the Maryland Solicitations Act including Everhart’s failure to register as a charitable organization or as a paid fundraiser, as required by the law.

“Our office is committed to protecting Maryland from those who use deceit to divert charitable donations,” said Secretary of State John C. Wobensmith. “We encourage citizens to report any suspicious charities or fundraisers to our office and research the registration and financial information of a charity.

The settlement announced today includes a permanent, lifetime ban against Everhart from operating or founding any charitable organization, from fundraising for any charitable organization, and a permanent ban from working for any charitable organization for which he would be responsible for soliciting, collecting, or handling charitable contributions.

For more information, click here.

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FTC, MISSOURI & FLORIDA Continue Fight against Sham Charities; Shut Down Operations That Falsely Claimed to Help Disabled Police Officers and Veterans

March 28, 2019

The operators of two purported sham charities have agreed to settle charges by the Federal Trade Commission and the Attorneys General of Missouri and Florida that they deceived donors with false claims that their organizations helped disabled police officers and military veterans. The operators of both schemes are permanently banned from charitable solicitations or otherwise working for charities.

Continue reading “FTC, MISSOURI & FLORIDA Continue Fight against Sham Charities; Shut Down Operations That Falsely Claimed to Help Disabled Police Officers and Veterans”
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PENNSYLVANIA – Attorney General Josh Shapiro Announces Legal Action Against UPMC for Violating Pennsylvania’s Charities Laws

Attorney General Josh Shapiro Announces Legal Action Against UPMC for Violating Pennsylvania’s Charities Laws – PA Office of Attorney General

Petition to modify Consent Decrees aims to restore fairness and promote the public interest in western Pennsylvania’s healthcare system

PITTSBURGH — Attorney General Josh Shapiro today filed a petition in Commonwealth Court to modify the consent decrees governing the relationship between UPMC and Highmark, two of the largest health care providers and insurers in the western Pennsylvania market.  The petition requests that the Court impose modifications to protect and promote the public interest by ensuring that UPMC abides by its charitable obligations to the Commonwealth of Pennsylvania.

Continue reading “PENNSYLVANIA – Attorney General Josh Shapiro Announces Legal Action Against UPMC for Violating Pennsylvania’s Charities Laws”
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CALIFORNIA – Attorney General Becerra Announces $410,000 Settlement with Giving Children Hope, After the Charity Engaged in a Misleading Reporting Scheme

The California Department of Justice consummated an Assurance of Voluntary Compliance to remedy fundraising problems. Specifically the organization used an accounting gimmick involving gifts-in-kind (GIK) to manipulate its books and, thus, hide poor “program service” percentages (i.e. how much of a donation goes to charitable program as opposed to fundraising and salaries). It is a primer on the problems of GIK and ensures that the directors and accountant responsible resign and/or not perform services of charities going forward.

Giving Children Hope – court signed AVCDownload

SACRAMENTO – California Attorney General Xavier Becerra today announced a settlement with charitable organization Giving Children Hope (GCH) for filing misleading documents to increase the charity’s ranking and generate more donations.  The settlement comes after an investigation by the Attorney General’s office found the charity engaged in a misleading reporting scheme to purposefully increase its Gift-in-Kind donations to mislead the public. Gift-in-Kind donations are noncash donations made to charities, such as clothing, pharmaceutical drugs, food, and medical supplies.  As part of the settlement, the charity will pay $400,000 and stop providing misleading reports. The directors and officers of GCH – John Ditty, Sean Lawrence, V. William Barta and accountant Suzanne Bryant – will pay an additional $10,000. The additional money will be used for charitable law enforcement investigations.

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U.S. DEPT. OF JUSTICE – Former Charity CEO Pleads Guilty To Multi-Million-Dollar Political Corruption Scheme

The former CEO of a charity headquartered in Springfield, Missouri has pleaded guilty to her role in a multi-million-dollar political corruption scheme that involved bribes and campaign contributions for elected public officials in Missouri and Arkansas, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Tim Garrison of the Western District of Missouri.

Marilyn Luann Nolan, 68, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush on Friday, Nov. 9, to one count of conspiracy to embezzle and misapply the funds of a charitable organization that received federal funds. Continue reading “U.S. DEPT. OF JUSTICE – Former Charity CEO Pleads Guilty To Multi-Million-Dollar Political Corruption Scheme”