FTC cracks down on charities claiming to help veterans, service members
WASHINGTON (CNN) – The Federal Trade Commission on Thursday announced a major crackdown on fake charities claiming to help veterans and members of the armed services.
The crackdown involved more than 100 law enforcement actions in the 50 states, the District of Columbia, Guam, Puerto Rico and American Samoa. The coalition of law enforcement included state attorneys general.
Joe Simons, chairman of the Federal Trade Commission, presented an example on one action. “Help the Vets collected more than $20 million by claiming the donations would help veterans.”
But, the FTC said, 95 percent of that money went to Help the Vets’ expenses, its fundraisers and its founder.
Other groups targeted in the crackdown also had credible names such as National Vietnam Veterans Foundation. Art Taylor, president and CEO of the BBB Wise Giving Alliance, said, “When veterans came to them asking for support, instead of supporting them — funded the needs of their friends and family members.”
Another group, Veterans of America, made illegal robo-calls asking for cars, boats and real estate, but, the FTC said, those donations were resold for the founder’s profit.
John C. Wobensmith, the Maryland secretary of state, said, “I’m here to warn scam artists, watch out. We’re investigating complaints, we will track you down.”
Jai Caron Lenoir, a Army and Navy veteran, said, “This is something that’s going to affect the life of you and your family. And someone wants to play games for their own personal gain.”
The FTC made a video to help American donate to worthy organizations. The agency said you should always ask for the full name of the group. Check that name with your state’s secretary of state, the Better Business Bureau and other charity-rating websites. Don’t donate using wire transfers or prepaid cards. People can learn more at FTC.gov/charity.
Andrew Smith with the Bureau of Consumer Protections in the Federal Trade Commission, asid “Consumers shouldn’t be discouraged from giving. I think the message here today is that there are effective cops on the beat.”