Friday, December 18, 2015

Child Leukemia Charity Closed After Millions Lost

by Gary Snyder

New York State attorney general reached a settlement to permanently close a child leukemia charity accused of fraud.

The attorney general will also recover $380,000 dollars from the foundation, most of which will be directed to charities helping children with leukemia. The founder forfeited claims to an additional $612,844 in back pay, in addition to a claim to a lifetime pension and other benefits.

The foundation collected $9.7 million from 2009 to 2013. Some 80 percent of the money went to telemarketing and direct-mail fundraising campaigns, and only $57,451 was paid out in direct cash assistance to leukemia patients.

The foundation also fraudulently claimed to have a bone marrow registry and cancer research building in Israel.

The president of the foundation, until his resignation in 2010, had been convicted of bank fraud in 1999. The foundation’s accountant took over as president, but the original founder and president continued to run things. He established the foundation in 1991 after losing a son to leukemia. He paid himself $595,000 in salary and $600,000 in deferred compensation from 2009 to 2013, and a lifetime pension of more than $100,000 a year.







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, Newsweek.com, 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, MichiganNonprofit.com, CORP! Magazine, Crain’s Michigan Nonprofit, ncrp.org, PhilanTopic, Nashville Free Press, Nonprofit Law Blog, Seniors World Chronicle, Carnegie Reporter, Assoc. of Certified Fraud Examiners Examiner, msnbc.com, Worchester (MA) Telegram and Gazette, Carnegie Corporation of America, EO Tax Journal, Wikipedia: Non-profit Organizations; Parent: Wise Austin, Accountants News, Veterans Today, Answers.com, Far-roundtable, #Nonprofit Report, nonprofithelpnews, nonprofit news; National Enquirer, Northwest Herald, The HelpWise Daily, The #Nonprofit Report, Wikipedia (Nonprofit Organization), Answers.com, Nonprofits: On the Brink (2006) Silence: The Impending Threat to the Charitable Sector (2011)
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