Friday, September 27, 2013

Charity Telemarketers Accused Of Truthlessness

by Gary Snyder

The company's telemarketers "explicitly lied" to donors by telling them that all of the donations went to charity when in fact only 10 to 33 percent went to charity, according to the Attorney General's complaint in Ohio.

The Pennsylvania attorney general's office sued Encore Music Productions in Commonwealth Court, accusing the firm of misleading donors.

The Ohio attorney general's office filed a separate suit against Boardman-based Encore, alleging the company engaged in a pattern of racketeering, theft and money-laundering in soliciting for some 30 Ohio organizations since 2006.

The Pennsylvania suit also accuses four Western Pennsylvania fire department unions -- Sharon Local 417, McKeesport Local 10, New Castle Local 160 and Butler Local 114 -- of violating Pennsylvania law by using Encore to solicit funds and not registering as charitable organizations.

The suits also accuse the firms of using telemarketers, at least 22 of whom are convicted felons, who falsely identified themselves as firefighters.

In addition, some 200 telemarketers were not registered as professional solicitors as required by Pennsylvania and Ohio laws governing charitable organizations.

A temporary restraining order against Encore has been granted pending a permanent shutdown requested by attorneys general in both states.

Officials have also asked that any assets Encore received through fraud be liquidated and given to charity.

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: Charity Navigator, Vermont Public Radio, Miami Herald, National Public Radio (NPR), Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), “Betrayal”, (a movie), NBC (on Charity Fraud…TBD), FOX2, ABC Spotlight on the News, WWJ Radio, Marie Claire, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, Charity Navigator, The Chronicle of Philanthropy, St. Petersburg Times, Board Room Insider, USA Today Topics, Accountants News,, Responsive Philanthropy Magazine, New York Times, Portfolio Magazine, The Virgin Islands Daily News, NANKAI (China) BUSINESS REVIEW, National Religious Broadcasters newsletter, The Charity Governance Blog, American Chronicle, Palm Beach Post, Detroit Free Press, Oakland Press, Nonprofit World, Socially Responsible Business Forum, PNNOnline, Ohio Nonprofit Resources, Nonprofit Good Practice Guide, Nonprofit Startup Guide, Nonprofit Blog, National Coalition of Homeless Newsletter, Finance and Administration Roundtable Newsletter,, CORP! Magazine, Crain’s Michigan Nonprofit,, PhilanTopic, Nashville Free Press, Nonprofit Law Blog, Seniors World Chronicle, Carnegie Reporter, Assoc. of Certified Fraud Examiners Examiner,, Worchester (MA) Telegram and Gazette, Carnegie Corporation of America, EO Tax Journal, Wikipedia: Non-profit Organizations; Parent: Wise Austin, Accountants News, Veterans Today,, Far-roundtable, #Nonprofit Report, nonprofithelpnews, nonprofit news; National Enquirer, Northwest Herald, The HelpWise Daily, The #Nonprofit Report, Wikipedia (Nonprofit Organization),, Nonprofits: On the Brink (2006) Silence: The Impending Threat to the Charitable Sector (2011)
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