Sting Against Charity Fraudsters Allegedly Helping Veterans

Back in 2015, the Federal Trade Commission and all 50 state attorneys general joined in a coordinated lawsuit to take down a group of four sham charities and the people running them. These scam artists collected some $187 million over a four-year-period from unsuspecting donors around the U.S. who thought they were giving money to help cancer patients.  Instead, the “overwhelming majority of” the money was spent Read More

Charities in the Courtroom15: NY Goes After “Bottomfeeders”

The New York State Attorney General, Eric Schneiderman, has emerged as a key leader of state officials committed to going after fraud and abuse in charities. Doing so has been a big favor to New York’s nonprofits, as it draws a high-profile distinction for the public between legitimate and illegitimate activity in the sector.... He has named his office’s attempt to pursue scam artists that make use of 'shell' Read More

Charity Fraud: State AGs Crack Down

Attorneys general around the nation are - now more than ever - high profile and newsworthy as they take on matters ranging from defying presidential executive orders to cracking down on criminal business conspiracies. They continue to work together as well to root out charity fraud and malfeasance, particularly if these activities cross state lines. Last year, all 50 state attorneys general cooperated in halting a Read More

Charity Fraud: Secret Billing Schemes

Charities are “tempting targets” for fraudsters. “[F]raud cannot occur unless an opportunity is present.” While embezzlement is a flashier crime, improper billing practices seem to pop up more often than other common schemes for stealing from 501(c)(3) organizations and other nonprofits. “Billing schemes” take a variety of forms, but “often involve - the creation of a shell company. In such a fraud, a dishonest Read More

Charity Fraud: Embezzlement, But Much More

According to a recent study by the Association of Certified Fraud Examiners, “the typical nonprofit organization loses an estimated 5 percent of its annual revenue to fraud.” While fraud in nonprofit organizations resulted, on average, in a smaller net loss than fraud in commercial enterprises, the nonprofits in the study reported a median loss of $100,000—an 11 percent increase from the previous study and a Read More