Thursday, June 13, 2013

The Lowest of the Low, Fundraiser Order To Make Whole

by Gary Snyder

A fundraising company that duped people into giving money to a sham breast cancer charity will have to pay $3.1 million in restitution, a state judge has ordered. Nearly all of that money will be given to legitimate breast cancer charities through a fund set up by New York State Attorney General Eric Schneiderman, who brought the case against Lindenhurst-based Campaign Center Inc. and its principal, Garrett Morgan of West Islip.

A decision by Supreme Court Judge Emily Pines in Suffolk, calling charitable fundraising scams "among the lowest of the low." "This decision proves that New York fundraisers will be held accountable when they defraud the public and line their own pockets," he said in a statement.

Last month Pines issued a summary judgment in civil court against the company and Morgan. She ordered the company to close and permanently barred it from doing charitable fundraising in New York. They had been charged with violating state laws in a scheme in which telemarketers solicited donations for the charity Coalition Against Breast Cancer. 

Pines' decision said that from 2005 to 2011 the Campaign Center raised $4.9 million on behalf of the charity but kept $3.9 million for itself. The charity played on people's emotions to get them to donate money in the hopes of fighting breast cancer, but little of the money ever went to research or medical services, Schneiderman said

As previously noted in Nonprofit Imperative, the Coalition Against Breast Cancer was shut down and its former directors -- treasurer Andrew Smith, director of development Debra Koppleman and president Patricia Scott -- in April agreed to pay $1.6 million in restitution and to never again run a charity in the state. (Newsday)

Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics,, Responsive Philanthropy Magazine, New York Times...and many more Nonprofits: On the Brink (2006) Silence: The Impending Threat to the Charitable Sector (2011)
Post a Comment