An entity in Atlanta posing as a human rights organization has been scamming people overseas. Federal and state regulators are setting up alarms, but they admit that this effort is cleverly constructed to lure the unsuspecting non-English speaker.
Eighty-five to 90 percent of every dollar Help the Vets raised went into the pockets of the telemarketers, and the purported “suicide hotline” they provided connected only to the founder’s cellphone.
In a historic move, last week the Federal Trade Commission and state charity offices announced a full-bench press response to the longstanding, widespread, and vile problem of charity fraud in the name of veterans.
When abrogation of responsibilities under the law occurs over an extended period of time, any private foundation should expect to be called to account. When they appear to be calculated and exploitive of tax exemption and the public’s trust, it may rise to another level. So it is for the Trump Foundation.
Scammers are creating imaginary nonprofits with names similar to legitimate nonprofits.
State attorneys general are systematically suing to close a certain type of scam charity that has long besmirched the good name of the nonprofit sector.
Although the national organization VietNow has been closed by the concerted action of 25 attorneys general, there are a number of other chapter organizations that have survived. Is that a problem?
This week, a coalition of 25 attorneys general finally closed down VietNow, a charity that used more than 85 cents of the dollar for the cost of fundraising, but this type of fundraising scam in the name of veterans has been too common for way too long.
Pennies on the dollar are finally released to veterans charities after two long-running scams are closed down.
The next episode of the CNBC show “American Greed” will focus on the Reynolds family, but it is one of many episodes featuring nonprofit scams.
