INDIANAPOLIS (WISH) – An Indianapolis man will spend four years in federal prison and pay $365,750 in restitution after soliciting money for veterans organizations and keeping most of it.
Scott M. Gruber, 40, was sentenced after being convicted of two counts of mail fraud and one count of structuring to evade reporting requirements.
Gruber set up two fundraising organizations and hired people to collect money at retail outlets and Monument Circle, according to the U.S. attorney’s office. People were told 100 percent of proceeds would go to charities. Of $550,000 collected for the Purple Hearts Veterans Foundation, only 8 percent was given to the charity. Of $575,000 collected for Service Connected Disabled Veterans of America (SDVA), less than 1 percent was given to the charity.
Gruber paid the people he hired 40 percent of what they collected.