Wednesday, December 10, 2008
Kentucky Attorney General Settles Claim
Attorney General Jack Conway today announced a settlement with a Gig Harbor, Washington-based charity that claimed to raise funds to help pay veterans’ expenses but ultimately gave less than 1% of the money raised to veterans.
The agreement, filed today in Franklin Circuit Court, bars the charity, American Veterans Coalition, and its principal operators, Robert Friend, Jr. and Shao Mei Wang, from soliciting contributions in Kentucky for 10 years.
In the settlement, Friend and Wang, who are husband and wife, also agreed that no other charity operated by them will solicit contributions in the Commonwealth of Kentucky for 10 years. The settlement requires the charity to pay the Commonwealth of Kentucky $10,000 and to refund $9,927.50, the entire amount raised in Kentucky, as restitution.
“Given the tremendous sacrifice made by the thousands of Kentucky soldiers who are serving or who have served in places of great danger, I welcome any charity that seeks to assist our veterans and their families,” General Conway said. “However, organizations that defraud consumers and deny much needed assistance to our military men and women will not be tolerated in the Commonwealth of Kentucky.”
The Office of the Attorney General alleges that the American Veterans Coalition violated the Consumer Protection Act by making false and misleading statements to donors about how contributions would be used. Investigators report that the Coalition misled donors into believing that a substantial amount of their donations would be spent on providing financial assistance to veterans. Of the $1,239,812.00 raised nationally in 2006, the Coalition only spent $7,400 in financial assistance to veterans. The American Veterans Coalition and its operators dispute the allegations. The Assurance of Voluntary Compliance is not an admission or finding of a violation.
Since taking office, General Conway has filed five other settlements and recovered $46,827.50 for the Commonwealth and consumers from charities or solicitors that have allegedly violated Consumer Protection laws.
“There are many reputable charities and responsible solicitors that do a great deal of good in our communities, but there are also fraudulent organizations that deprive those in need. Particularly during this holiday season, I encourage Kentuckians to give generously, but wisely, to the causes and organizations of their choice,” said General Conway.
Questions to ask before making a charitable donation:
•What is the full name, address and phone number of the charity? •Do you work for the charity or are you a paid fund-raiser? •How much of my contribution will go to the charity and how much to the solicitor? •What will the charity use my contribution for? •Is my contribution tax deductible? •Is the charity registered with the Office of Attorney General?•Is the solicitor registered with the Office of Attorney General? •What percentage of its total income does the charity spend on its charitable purpose? •Can I obtain a copy of the charity’s IRS Form 990 or other financial statement showing the percentage of donations spent on fundraising and administrative expenses?
Red FlagsSome charitable solicitations send messages or "red flags" that might lead a person to question whether this is an organization worthy of support or even whether it really is a charity:
•The solicitor pressures you to make a donation. Hang up on aggressive or pushy solicitors. •The person refuses to send you written material or financial information. •The charity sends you an invoice or statement that indicates a payment due for a contribution you never pledged. •The organization's name and logo closely resemble another charity with a similar charitable purpose. •If solicited by mail, the full name, address and phone number of the entity soliciting is not disclosed in the material.
Tips to prevent fraud: •Never give your credit card number to someone soliciting by phone.•Never give cash. Always make the check payable to the charity and ask for a receipt. •Never respond to emails requesting personal information, including your name, address, date of birth, place of birth, social security number or your mother’s maiden name. •Never agree to meet with a solicitor in your home or accept an offer for a courier to come to your home to pick up your donation.
If the solicitor claims to be raising funds on behalf of a local charity, contact the charity yourself to verify that it is conducting a fundraising event. It is not uncommon for fraudulent solicitors to falsely associate themselves with local charities just to collect money and leave town.
If you have been a victim of a fraudulent charitable solicitation, contact the Attorney General’s Consumer Protection Hotline at 1-888-432-9257 or visit http://ag.ky.gov/civil/consumerprotection/charity/
The agreement, filed today in Franklin Circuit Court, bars the charity, American Veterans Coalition, and its principal operators, Robert Friend, Jr. and Shao Mei Wang, from soliciting contributions in Kentucky for 10 years.
In the settlement, Friend and Wang, who are husband and wife, also agreed that no other charity operated by them will solicit contributions in the Commonwealth of Kentucky for 10 years. The settlement requires the charity to pay the Commonwealth of Kentucky $10,000 and to refund $9,927.50, the entire amount raised in Kentucky, as restitution.
“Given the tremendous sacrifice made by the thousands of Kentucky soldiers who are serving or who have served in places of great danger, I welcome any charity that seeks to assist our veterans and their families,” General Conway said. “However, organizations that defraud consumers and deny much needed assistance to our military men and women will not be tolerated in the Commonwealth of Kentucky.”
The Office of the Attorney General alleges that the American Veterans Coalition violated the Consumer Protection Act by making false and misleading statements to donors about how contributions would be used. Investigators report that the Coalition misled donors into believing that a substantial amount of their donations would be spent on providing financial assistance to veterans. Of the $1,239,812.00 raised nationally in 2006, the Coalition only spent $7,400 in financial assistance to veterans. The American Veterans Coalition and its operators dispute the allegations. The Assurance of Voluntary Compliance is not an admission or finding of a violation.
Since taking office, General Conway has filed five other settlements and recovered $46,827.50 for the Commonwealth and consumers from charities or solicitors that have allegedly violated Consumer Protection laws.
“There are many reputable charities and responsible solicitors that do a great deal of good in our communities, but there are also fraudulent organizations that deprive those in need. Particularly during this holiday season, I encourage Kentuckians to give generously, but wisely, to the causes and organizations of their choice,” said General Conway.
Questions to ask before making a charitable donation:
•What is the full name, address and phone number of the charity? •Do you work for the charity or are you a paid fund-raiser? •How much of my contribution will go to the charity and how much to the solicitor? •What will the charity use my contribution for? •Is my contribution tax deductible? •Is the charity registered with the Office of Attorney General?•Is the solicitor registered with the Office of Attorney General? •What percentage of its total income does the charity spend on its charitable purpose? •Can I obtain a copy of the charity’s IRS Form 990 or other financial statement showing the percentage of donations spent on fundraising and administrative expenses?
Red FlagsSome charitable solicitations send messages or "red flags" that might lead a person to question whether this is an organization worthy of support or even whether it really is a charity:
•The solicitor pressures you to make a donation. Hang up on aggressive or pushy solicitors. •The person refuses to send you written material or financial information. •The charity sends you an invoice or statement that indicates a payment due for a contribution you never pledged. •The organization's name and logo closely resemble another charity with a similar charitable purpose. •If solicited by mail, the full name, address and phone number of the entity soliciting is not disclosed in the material.
Tips to prevent fraud: •Never give your credit card number to someone soliciting by phone.•Never give cash. Always make the check payable to the charity and ask for a receipt. •Never respond to emails requesting personal information, including your name, address, date of birth, place of birth, social security number or your mother’s maiden name. •Never agree to meet with a solicitor in your home or accept an offer for a courier to come to your home to pick up your donation.
If the solicitor claims to be raising funds on behalf of a local charity, contact the charity yourself to verify that it is conducting a fundraising event. It is not uncommon for fraudulent solicitors to falsely associate themselves with local charities just to collect money and leave town.
If you have been a victim of a fraudulent charitable solicitation, contact the Attorney General’s Consumer Protection Hotline at 1-888-432-9257 or visit http://ag.ky.gov/civil/consumerprotection/charity/
# posted by Joe Kinzer @ 4:19 PM 
