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AG Yost Recovers Donations from Phony Charity Claiming to Benefit East Palestine

Under a settlement reached with the Ohio Clean Water Fund, the sham charity must turn over more than $131,000 in pocketed donations so the money truly does benefit East Palestine residents, Ohio Attorney General Dave Yost announced today.

“I stand by my word to fight for the community of East Palestine,” AG Yost said. “We sued to make sure the contributions improperly solicited from well-intentioned donors get into the hands of people who will use them for their intended purposes. Our fight isn’t over, but this is a win.”

Yost’s initial lawsuit alleged that the Ohio Clean Water Fund (OCWF), while claiming to be operating on behalf of Second Harvest Food Bank, raised more than $141,000 to provide bottled water and emergency aid to the residents of East Palestine following the February train derailment disaster.

The food bank had not given OCWF permission to fundraise on its behalf, and Yost’s lawsuit revealed that the “charity” had pocketed at least $131,000 of the donated funds, while sending only $10,000 to the food bank.

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AG Platkin Announces $40,000 to be Donated to Survivors of the Triangle from Settlement with Fraudulent Charity

Attorney General Matthew J. Platkin announced today a $76,624 settlement with the National Police Relief Association and former members of its board to resolve allegations that defendants lied about raising money to help law enforcement families and instead used the money for lavish vacations and other personal expenses, along with other violations of the New Jersey Charitable Registration and Investigation Act (“CRIA”), and the Regulations Governing Charitable Fundraising. Consistent with the agreement, $40,000 in settlement funds will be donated by the Attorney General to a law enforcement-centered charity, New Jersey State Police Survivors of the Triangle. The remaining $36,624 of the settlement amount—consisting of penalties, attorneys’ fees, and costs—is suspended.

In a complaint filed in Superior Court, Ocean County, on December 29, 2021, the Division of Consumer Affairs alleged that Defendants National Police Relief Association (“NPRA”), and three of NPRA’s executive board members, Frank John, Antoinette John, and the estate of Michael Davis (collectively “Defendants”) used charitable donations to make undisclosed salary payments to board members and pay board members’ expenses, misused or misappropriated charitable funds, misrepresented to the public the fact that most of their charitable funds went to causes unrelated to their primary charitable purpose, and failed to maintain adequate records and comply with annual charities registration requirements. In one case, charitable donations were used to pay for a trip to Walt Disney World Resort for a board member. The parties agreed to resolve these allegations through a consent judgment approved by the Court on January 17, 2023.

“National Police Relief Association falsely claimed the bulk of its donations were going to help members of law enforcement and their families but were instead used for frivolous expenses by the people who ran the charity,” said Attorney General Platkin. “With this settlement, we are making sure money is going to a charity that is actually helping the families of New Jersey’s finest.”

Survivors of the Triangle, a registered charity that provides resources to help the families of fallen law enforcement officers rebuild their lives after a tragic line of duty death, will receive $40,000 from the settlement. The charity’s main mission is to guide these families through their grief and bring their lives a semblance of normality.

Additionally, the consent judgment requires that:

  • NPRA not directly or indirectly act as a charitable organization or an entity with charitable purposes;
  • Defendants dissolve the charity;
  • The individual Defendants not serve in any kind of leadership position of any other charitable organization;
  • Defendants pay all applicable renewal fees for fiscal years ending in 2018 and 2019;
  • Defendants amend income tax returns for fiscal years 2015-2019 to appropriately reflect salaries paid to board members; and
  • Defendants not engage in any unfair or deceptive acts or practices while doing business in New Jersey and follow all state and federal laws, rules, and regulations.

“This charity was built on a lie,” said Cari Fais, Acting Director of the Division of Consumer Affairs. “The defendants didn’t help wounded or fallen law enforcement officers. They helped themselves to money people donated thinking it was going to a good cause. This settlement shows that if a charity misrepresents itself in New Jersey, DCA will take action.”

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PRISON SENTENCE SECURED FOR SCAM ARTIST COMMITTING REAL ESTATE AND PROPERTY CRIMES

Attorney General Ashley Moody’s Office of Statewide Prosecution secured a multi-year prison sentence for a scammer that committed multiple white-collar crimes involving real estate and advertising property. Tabria Josey, along with an accomplice, fraudulently listed underdeveloped plots of land with homebuilding or investment potential in several Florida counties. Josey stole from more than 40 victims, causing more than $300,000 in losses. 

Attorney General Ashley Moody said, “This duo laid traps to gain the trust of potential buyers, forcing them to fork over a heavy down payment before cutting off all ties to line their pockets. I’m proud of my Office of Statewide Prosecution for taking down the ringleader of the operation, along with gaining restitution for the victims that suffered through this scheme.”

The duo listed properties on different websites, none Josey or the accomplice owned, for sale and posed as listing agents, sellers and/or representatives from a fictitious title company. Once a potential buyer made contact, Josey and the accomplice then convinced any victim interested in a property to wire money for a down payment and then cut off communications.

While the duo charged the majority of victims from $2,500 to $7,500, some lost between $15,000 to $25,000. More than $300,000 in restitution will be given back to the individual victims.

Josey primarily operated out of Palm Beach County, but fraudulently listed land property in all of the following counties: Flagler, Hillsborough, Indian River, Lee, Orange, Palm Beach and St. Lucie.

OSP filed the case in Lee County due to the fact that many of the victims and listed properties are in Lee County.

Josey pleaded guilty and is convicted of organized fraud in the first degree, organized fraud in the third degree, grand theft; a third-degree felony, aggravated white-collar crime; a first-degree felony, money laundering; a first-degree felony, and two counts of communications fraud in the third degree. 

Josey is sentenced to six years in prison, followed by nine years of probation. The other defendant’s case is still pending.

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Statement from RIAG and RIDOH regarding status of The Centurion Foundation HCA application

Today the Attorney General and the Rhode Island Department of Health, the two state regulators empowered to oversee hospital conversions in Rhode Island, issued the following statement regarding the status of an initial submission by Prospect Medical Holdings and The Centurion Foundation to state regulators pursuant to the Hospital Conversions Act (HCA). This submission was related to a proposed transaction involving CharterCARE, which includes Roger Williams Medical Center and Our Lady of Fatima Hospital.

“Following review of a submission from Prospect Medical Holdings and The Centurion Foundation delivered on May 26, 2023, regarding a proposed hospital conversion, the Attorney General and the Department of Health determined that the materials submitted do not constitute an Initial Application as required under the Hospital Conversions Act. The materials do not respond to the most recent, publicly available application form and do not include responses to transaction-specific questions.

The parties have been given notice by the Attorney General and the Department of Health that the submitted materials do not constitute an Initial Application. Under the HCA, transacting parties seeking the transfer of ownership of a hospital must complete an Initial Application and file it with both the Office of the Attorney General and the Rhode Island Department of Health, who will determine whether the application is complete. Once the application is deemed complete, the Attorney General and the Rhode Island Department of Health will then initiate a review and issue a decision on the application for transfer of ownership as to whether all statutory criteria are met and the public’s interest is protected.”

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SETTLEMENT REACHED WITH HUMANE SOCIETY OF HARRISBURG AREA REGARDING SUBSTANDARD RECORD-KEEPING AND REPORTING PRACTICES

Attorney General Michelle Henry today announced a settlement with the Humane Society of Harrisburg Area regarding the organization’s bookkeeping methods, specifically, a lack of internal oversight of purchases and reimbursements.

Humane Society of Harrisburg Area is a charitable organization and therefore is required to maintain record-keeping standards. The Office of Attorney General’s Assurance of Voluntary Compliance, or settlement, requires the organization to maintain those standards and pay $45,055.25 to the Office of Attorney General. This amount includes a $5,000 civil penalty with the remainder being collected to recoup investigative costs. The settlement also requires that the Humane Society of Harrisburg Area file amended IRS forms 990 for 2021, 2022, and going forward.

“It is essential that Pennsylvania’s non-profit and charitable organizations keep accurate records so we can ensure every aspect of the Charities Act and Nonprofit Corporation Law is being followed,” said Attorney General Henry. “It is part of my constitutional mandate as Attorney General to verify that a level of public transparency is maintained by these organizations.”

The investigation focused solely on the Humane Society of Harrisburg Area’s record-keeping as required by the Charities Act and Nonprofit Corporation Law. The investigation produced no evidence of abuse or mistreatment of animals and no such allegations are contained within the settlement.

Since being contacted by the Office of Attorney General, the organization has already taken steps to improve financial control procedures and keep records up to standard, including contracting with an outside auditor and enforcement of credit card and check-writing policies.

The settlement arose from an investigation into the Humane Society of Harrisburg Area’s failure to disclose the Executive Director’s housing stipend in the organization’s required yearly reporting. Further violations by the Humane Society include a lack of appropriate internal oversight with regard to the use of business credit cards, purchasing, travel, and reimbursement policies.