PENNSYLVANIA – Attorney General Josh Shapiro Announces Legal Action Against UPMC for Violating Pennsylvania’s Charities Laws

Attorney General Josh Shapiro Announces Legal Action Against UPMC for Violating Pennsylvania’s Charities Laws – PA Office of Attorney General

Petition to modify Consent Decrees aims to restore fairness and promote the public interest in western Pennsylvania’s healthcare system

PITTSBURGH — Attorney General Josh Shapiro today filed a petition in Commonwealth Court to modify the consent decrees governing the relationship between UPMC and Highmark, two of the largest health care providers and insurers in the western Pennsylvania market.  The petition requests that the Court impose modifications to protect and promote the public interest by ensuring that UPMC abides by its charitable obligations to the Commonwealth of Pennsylvania.

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CALIFORNIA – Attorney General Becerra Announces $410,000 Settlement with Giving Children Hope, After the Charity Engaged in a Misleading Reporting Scheme

The California Department of Justice consummated an Assurance of Voluntary Compliance to remedy fundraising problems. Specifically the organization used an accounting gimmick involving gifts-in-kind (GIK) to manipulate its books and, thus, hide poor “program service” percentages (i.e. how much of a donation goes to charitable program as opposed to fundraising and salaries). It is a primer on the problems of GIK and ensures that the directors and accountant responsible resign and/or not perform services of charities going forward.

SACRAMENTO – California Attorney General Xavier Becerra today announced a settlement with charitable organization Giving Children Hope (GCH) for filing misleading documents to increase the charity’s ranking and generate more donations.  The settlement comes after an investigation by the Attorney General’s office found the charity engaged in a misleading reporting scheme to purposefully increase its Gift-in-Kind donations to mislead the public. Gift-in-Kind donations are noncash donations made to charities, such as clothing, pharmaceutical drugs, food, and medical supplies.  As part of the settlement, the charity will pay $400,000 and stop providing misleading reports. The directors and officers of GCH – John Ditty, Sean Lawrence, V. William Barta and accountant Suzanne Bryant – will pay an additional $10,000. The additional money will be used for charitable law enforcement investigations.

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MICHIGAN – Maryland Charity Agrees to Dissolve Following Schuette Allegations of Deceptive Solicitations


LANSING 
– Michigan Attorney General Bill Schuette today announced a settlement with National Emergency Medicine Association (NEMA), a Maryland-based charity that solicits nationwide.  As part of the settlement the charity will cease operations and dissolve in response to the Attorney General’s allegations of deceptive solicitations. NEMA was claiming to raise funds for the National Heart Council, National Alzheimer’s Council and the National Heart Disease Council, which were supposed to be fighting these diseases.

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U.S. DEPT. OF JUSTICE – Former Charity CEO Pleads Guilty To Multi-Million-Dollar Political Corruption Scheme

The former CEO of a charity headquartered in Springfield, Missouri has pleaded guilty to her role in a multi-million-dollar political corruption scheme that involved bribes and campaign contributions for elected public officials in Missouri and Arkansas, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Tim Garrison of the Western District of Missouri.

Marilyn Luann Nolan, 68, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush on Friday, Nov. 9, to one count of conspiracy to embezzle and misapply the funds of a charitable organization that received federal funds. Continue reading “U.S. DEPT. OF JUSTICE – Former Charity CEO Pleads Guilty To Multi-Million-Dollar Political Corruption Scheme”

WASHINGTON – Court rules Washington family broke law by using charities to deceive donors

Haueter family operated four sham charities, keeping more than $1M from Washington donors for themselves

SEATTLE — A King County Superior Court judge today ruled that the Haueter family used their four charities as an elaborate, deceptive scheme to solicit donations from Washingtonians for seemingly worthy causes, while pocketing much of the money for themselves. Attorney General Bob Ferguson filed a lawsuit in December 2017 asserting that the Haueters’ charities were a sham that the family used to enrich themselves by more than $1 million.

“Instead of helping cancer patients and vulnerable children, this family took advantage of the generosity of Washingtonians,” said Ferguson. “That is wrong – and illegal.” Continue reading “WASHINGTON – Court rules Washington family broke law by using charities to deceive donors”