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Virginia Attorney General Issues Restitution Checks to Consumers Harmed by Door-to-Door Sales Operation

KLMN Readers Services, Inc. was found to have engaged in illegal business practices during the door-to-door sale of magazines.

Attorney General Mark R. Herring announced today that his office has mailed restitution checks totaling more than $20,000.00 to 265 consumers as part of a judgment in a lawsuit filed against KLMN Readers Services, Inc., a Florida door-to-door magazine sales company that based its Virginia operation out of Chesapeake. The lawsuit alleged that the company sold magazine subscriptions with no intention of providing the magazines, failed to honor certain terms of its agreements, lied about subscriptions that would be donated to charities and soldiers overseas, and failed to issue refunds as required by law. The suit was filed in Chesapeake City Circuit Court and the Commonwealth won judgments against the company in September 2014 and March 2015.

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FTC Files Federal Court Actions Against Two Office Supply Schemes That Targeted Nonprofits and Small Businesses

The Federal Trade Commission has charged two separate office supply operations with targeting non-profit organizations and small businesses, such as child care centers, educational institutions, churches, and hospitals, and tricking them into paying for overpriced office and cleaning supplies they never ordered. Continue reading “FTC Files Federal Court Actions Against Two Office Supply Schemes That Targeted Nonprofits and Small Businesses”

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Illinois Attorney General Sues Fraudulent Charitable Telemarketers Again

Attorney General Lisa Madigan today announced a three-count complaint against professional fundraiser (PFR) and for-profit telemarketer Safety Publications, Inc., of Elk Grove Village, Ill., and its owners, Adam Herdman and Arthur Olivera, alleging violations of the charitable Solicitation Act and prior consent decrees with Madigan’s office. The Solicitation Act sets forth the laws governing charitable solicitation and fundraising activities by PFRs in Illinois. Continue reading “Illinois Attorney General Sues Fraudulent Charitable Telemarketers Again”

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Nonprofit Issues: AG May Use Tainted Evidence In ‘Redacted v. Redacted’ Case

PA Supreme Court vacates opinion limiting use of information disclosed by defendant’s attorney

Issue: January 2016

The Pennsylvania Supreme Court has overruled the Commonwealth Court’s opinion in “Redacted v. Redacted” and allowed the state Attorney General to proceed against several charities and their officers using information allegedly disclosed by the charity’s attorney in violation of her obligation to preserve confidentiality.  The Supreme Court has said that evidence should be admitted in the case “based on established evidentiary principles and not the broader Code of Professional Conduct.”

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New York Appellate Court Affirms Ruling Against Fraudulent Charities and Their Professional Fundraiser

The New York Supreme Court Appellate Division upheld lower court decisions against fraudulent charities and their professional fundraisers.  The Court held that the State of New York may bring fraud actions against charitable fundraisers and that the multimillion dollar damages award against the defendants was proper.  Copies of the decisions are posted below.

People of State of New York v. Coalition Against Breast Cancer, Inc., et al.

In the Matter of People of State of New York v Senior Citizens Assistance Group, et al.