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Attorney General Ellison wins $954,966 judgment and permanent ban against company Contributing 2 Combatants and its owner for bilking charitable donations intended for the military

State’s lawsuit alleged that Jacob Choinski used his for-profit company, Contributing 2 Combatants, to solicit donations from Minnesotans door to door while posing as a charity and kept the donations to line his own pockets.

Minnesota Attorney General Keith Ellison today announced that his Office has obtained a judgment of $954,966 against a Minnesota company that calls itself Contributing 2 Combatants and Coast 2 Coast Marketing, and its owner, Jacob Choinski, for violating charitable solicitation and consumer protection laws by defrauding Minnesota donors. Formally named PNW C2C Marketing, LLC (“C2C”), the company went door to door in Minnesota neighborhoods and misrepresented that C2C was a nonprofit soliciting donations to send care packages to servicemembers overseas. Choinski then spent the funds collected for his personal use and did not spend a single dollar on care packages since C2C’s inception in July 2018. The default judgment obtained by the State also permanently bans C2C from doing business in Minnesota and Choinski from any involvement in Minnesota’s nonprofit sector.

“Choinski’s conduct in this case was reprehensible. He used C2C to take advantage of Minnesotans who wanted to help our military servicemembers who are actively defending our country,” Attorney General Ellison said. “Our servicemembers overseas are making sacrifices for us every day and we will not stand by and allow their sacrifices to be exploited. This judgment ensures that Choinski and C2C can never engage in this conduct again.” 

C2C is a for-profit Minnesota limited liability company that advertised the cost of shipping a care package to service members overseas through door-to-door solicitation. While soliciting, however, C2C deceptively represented itself as a nonprofit by asking Minnesotans for donations and telling Minnesotans that their donations were tax deductible. C2C also claimed to partner with a charity to which it provided funds from its sales, but the State discovered that it never provided any funds to that nonprofit. Instead, Choinski diverted all the funds solicited for his personal use. The AGO’s judgment of $954,966 includes $70,966 in restitution for Minnesotans who were successfully solicited by C2C since its inception in 2018. The remaining $884,000 are civil penalties that must be paid to the State.

C2C solicited throughout the Twin Cities metro area, greater Minnesota, and other states. The lawsuit was filed in Ramsey County District Court and asserted that C2C and Choinski violated Minnesota’s Charitable Solicitation Act, the Uniform Deceptive Trade Practices Act, and the Consumer Fraud Act.

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Consumer Corner: Be wary of charity scams during times of humanitarian crisis

From the Desk of Kansas Attorney General Derek Schmidt. We all have been touched in some manner by the events unfolding across the globe in recent weeks and the level of human suffering. From Hurricane Ida to an earthquake in Haiti to the evacuation of thousands in war-torn Afghanistan and the struggles of some of our nation’s veterans, the needs of those less fortunate are apparent. And while we all would like to give generously to ease their pain, it is important to exercise caution when calls for help arrive by phone, email or text.

Our office has seen all too often the tricks that scammers and fraudsters play on generous Kansans, asking for a contribution that purports to be going to help those who have lost their homes and belongings, or who are in need of food and medical supplies. Recently, our attorneys assisted with shutting down some scammers based in Michigan, purporting to be fundraising in support of homeless veterans, children with autism, victims of house fires and breast cancer patients, and getting the funds in the hands of the bona fide organizations doing that work.

Here are some tips to help you give safely:

  • Support local, established charities. While there are many large, international organizations that do great work, your donations can often have a greater impact when they support a cause close to your community, where you can see the results of your donations.
  • Watch out for names that sound alike. Scammers often make their organizations’ names sound very similar to other well-known charities.
  • Be careful with telemarketers requesting contributions. Oftentimes, the telemarketer keeps a substantial portion of the donation. If you have questions about a solicitation, don’t be afraid to reach out to the charity directly.
  • Ask questions to find out where your donations go. Ask for written information, including how much of the money raised is actually used for charitable purposes and how much will end up in the hands of the professional fundraiser.
  • Ask if your donation is tax deductible. Not all donations to charities are tax deductible. You can check a charity’s status with the IRS at www.irs.gov. When in doubt, double-check with your tax preparer before assuming a donation will be tax deductible.
  • Document your donation. Make the donation by credit card or check – not cash, wire transfer or gift card. A solicitor that asks for payment by wire transfer or gift card is a red flag for scams. If something doesn’t feel right to you, consider donating to a different cause. If you pay by check, make the check payable directly to the charitable organization, not to the fundraiser soliciting the donation. Ask for a receipt to show the amount of the donation and if you specified your donation toward a specific project.

The safest way for Kansans to avoid charities fraud is to take control of their own charitable giving. Rather than responding to solicitations for money that arrive by telephone, in the mail, by email or otherwise, Kansans who wish to support charitable causes should develop their own proactive giving plan and give directly to the charities of their choice. Not only can this help avoid fraudsters but it also eliminates the costs charged by professional fundraisers, instead ensuring every penny of a contribution goes to the charitable purpose itself rather than fundraising expenses. In addition, giving to well-established local charities can maximize the benefit of each contribution and help avoid scams.

The Kansas Charitable Organizations and Solicitations Act (KCOSA) requires most charitable organizations to register with the state prior to soliciting. Examples of those exempt from registration include religious organizations, fraternal, patriotic, social, educational, alumni organizations and historical societies. Professional fund raisers and solicitors working for the charitable organization also must register. Consumers can call (785) 296-3751 or visit the charities registration page at www.ag.ks.gov/charities to check whether a charity is registered.

The Office of the Attorney General is responsible for enforcement of the KCOSA and protecting consumers from fraudulent charitable and solicitation activities. More information on staying safe from scams is available on the attorney general’s consumer protection website at www.InYourCornerKansas.org. If you suspect a charity scam or fraud, or any other violation of charitable solicitation laws, you can file a complaint with our Consumer Protection Division online at the aforementioned website or by calling (800) 432-2310.

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Attorney General Brnovich Warns of Hurricane Ida Charity Scams

 Attorney General Mark Brnovich is warning Arizonans to watch out for Hurricane Ida charity scams. There are already reports of fake organizations popping up asking people for money to help victims in Louisiana.

“It’s disgusting how fraudsters waste no time after a natural disaster to capitalize on people’s goodwill,” said Attorney General Mark Brnovich. “Arizonans are very generous, and I want to make sure they are donating to a legitimate charity that has experience helping victims quickly.”

Hurricane Ida hit Louisiana on Sunday and has caused widespread catastrophic damage. While many are eager to help those in need, Attorney General Brnovich wants consumers to do their homework before donating.

Attorney General Mark Brnovich offers the following tips to avoid scams:

  • Never give on impulse. Don’t give in to high-pressure requests for contributions or donations. Legitimate charities will not pressure you for an immediate donation and are happy to provide information about their charity for you to review.
  • Do your research about the organization and ask questions. For example, how will the funds reach those in need?
  • Obtain written information (including annual reports) about a charity before you donate. Always know how much of your donation will actually go to the charity itself versus administrative costs. You can find out more about a charity through Charity Navigator‘s website or the Better Business Bureau’s www.give.org.
  • Do not give donations in cash or by wire transfer.
  • Make contributions directly to known organizations rather than relying on a third-party.
  • Watch out for charities with names that sound similar to well-known organizations. Oftentimes, these sound-alike names are scams.
  • Be cautious of individuals representing themselves as surviving victims of a disaster or as government officials asking for donations.
  • Do not give unsolicited callers your credit card number or bank account information over the phone, even if the call appears to be legitimate. 
  • Do not click on links in unsolicited emails and text messages asking you to donate. Even if a message seems legitimate, it could be a phishing attempt. If you want to donate, contact the charity at a website or phone number you know to be valid.
  • Be cautious when donating to a GoFundMe fundraiser. It is common for scammers to set up GoFundMe fundraisers after highly publicized events and then disappear with the money.
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California State Senate Advances AG-Sponsored Bill to Provide Oversight and Protection of Online Charitable Donations

The California State Senate today approved Assembly Bill 488 (AB 488), a bill authored by Assemblymember Jacqui Irwin and sponsored by Attorney General Rob Bonta. AB 488 will ensure critical oversight by the California Department of Justice over charitable fundraising that occurs on internet platforms. Over the years, charitable giving through internet platforms has increased exponentially, requiring an update to California’s charitable giving laws. AB 488 will protect both donors and charities from deceptive or misleading solicitations by creating a framework that specifically defines online platform entities and requires them to register and report to the Attorney General’s Registry of Charitable Trusts.

“On top of a national pandemic, our state has been greatly impacted by this year’s wave of devastating wildfires. As Californians rise up to the occasion to help those in need, many will choose to make charitable donations through internet platforms,” said Attorney General Bonta. “To ensure my office’s continued ability to protect the public, we need to be in a stronger position to oversee online charitable fundraising practices. AB 488 will grant my office the ability to properly supervise third-party internet platforms and ensure that donations made online go towards their intended purposes, which is especially important during this difficult time.”

“I am pleased the State Senate voted overwhelmingly to approve AB 488,” said Assemblymember Jacqui Irwin. “After years of discussions and development with stakeholders, California is one step closer to securing the important oversight of the Attorney General that can provide every donor with the confidence that their donations are reaching charities and having an impact in their communities. In recent years donation trends have shifted, with hundreds of millions of dollars flowing through these online charitable fundraising platforms every year. With this new paradigm California must update its laws to provide the same level of oversight as traditional methods of fundraising.”

The California Department of Justice is responsible for regulatory supervision of charities, trustees, commercial fundraisers, and other legal entities that hold or solicit donations for charitable purposes. In recent years, charitable fundraising on internet platforms has grown exponentially, altering the landscape of charitable giving beyond what current law contemplated. Internet companies have developed methods for individuals to donate to charities through websites and phone applications that serve as “charitable fundraising platforms.” As currently written, California’s solicitation laws do not specifically reach these online platforms, resulting in instances of deceit and mistreatment of charitable donations that the Attorney General’s Office is not able to address through enforcement of existing charity oversight laws.

If signed into law, AB 488 will:

  • Create a level playing field for all charitable giving platforms, regardless of business model, by defining two new groups of entities, “charitable fundraising platforms” and “platform charities” that are subject to the Attorney General’s supervision;
  • Require covered entities to provide meaningful and transparent disclosures on their internet platforms, promptly distribute donations, and prohibit solicitations for charities not in good standing with the Attorney General’s Registry of Charitable Trusts; 
  • Permit some instances of soliciting for a charity without prior consent if certain criteria that safeguard against harm to charities and the public are met; and
  • Authorize the Attorney General’s Office to implement regulations to require donor notification and reporting requirements, and to encourage transparency and accountability.

The text of AB 488 is available here.

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Hurricane Scams: AG Jeff Landry Warns Citizens Of Potential Charity Fraud

 In the wake of Hurricane Ida, Attorney General Jeff Landry is warning citizens not to fall prey to those looking to exploit their charitable giving.

“While natural disasters can bring out the best in most people, they unfortunately can bring out the worst in others as well,” said Attorney General Landry. “So many of our neighbors need help; and with that in mind, I encourage all Louisianans to make sure their donations are actually going to those in need.”

Attorney General Landry offers the following quick tips before making a charitable donation:

  • Be wary of charities that arise immediately after a natural disaster. Learn more about a charity’s trustworthiness at the Better Business Bureau’s Wise Giving Alliance.
  • Avoid cash donations if possible. Pay by credit card or write a check directly to the charity.
  • Before clicking on a link to donate online, make sure you know who is receiving your donation. Visit the FTC’s Donating Through Crowdfunding, Social Media, and Fundraising Platforms for more information.
  • Trust your gut. If you see any red flags, or if you’re not sure about how a charity will use your donation, consider giving to a different one.