‘Help the Vets’ just one of many scams, FTC says
Americans get a patriotic feeling when they donate to charities that help military veterans and current service members – a sentiment dozens of charities across the U.S. have exploited to scam millions of dollars in donations, a government watchdog agency says.
A major offender, officials say, was Help the Vets, which had a nationwide operation, soliciting donations for its funding of veterans’ medical care, including breast cancer treatment, a suicide prevention program, retreats for recuperating from stress and veterans fighting breast cancer.
“But for thousands of disabled veterans who served in Iraq and Afghanistan, giving an arm and a leg isn’t simply a figure of speech – it’s a harsh reality,” read one of the Orlando, Floridabased organization’s solicitation let- ters, written by charity founder Neil Paulson. “Your $10 gift will mean so much to a disabled veteran.”
However, Help the Vets, which touted a “Gold” rating from GuideStar, primarily helped itself, using 95 percent of every donation, gathered through mailings and telemarketing calls, to cover fundraising, administrative expenses and Paulson’s salary and benefits, according to the Federal Trade Commis- sion. “The evidence shows ... (the group) in reality, spent more than 95 percent paying its founder, fundraisers and expenses,” FTC chairman Joe Simons said Thursday.
The FTC and attorneys general in Florida, California, Maryland, Minnesota, Ohio and Oregon filed a complaint and reached a settlement with Help the Vets, officials announced Thursday.
The charity, which took in about $20 million from 2014 to 2017, must pay its remaining assets, at least $72,122.36 to one or more court-approved legitimate veterans charities. Help the Vets founder Paulson, identified as a retired U.S. Army captain on the group’s GuideStar page, will also pay $1.75 million to one or more charities.
The FTC and charity regulators and law enforcement officials in every state have teamed up on more than 100 actions against dozens of fake charities,
which have collected tens of millions of dollars in donations of cash and vehicles and other goods, all part of scams that did not directly benefit veterans, officials say.
“Americans are grateful for the sacrifices made by those who serve in the U.S. armed forces,” Simons said in a statement announcing the initiative. “Sadly, some con artists prey on that gratitude, using lies and deception to line their own pockets. In the process, they harm not only well-meaning donors, but also the many legitimate charities that actually do great work on behalf of veterans and service members.”
The FTC announced the “Operation Donate with Honor” initiative Thursday, along with other state officials and the National Association of State Charity Officials. In addition to targeting complaints against fraudulent charities, the FTC has launched an education campaign to help consumers make sure they are donating to legitimate charities.
Peter O’Rourke, acting secretary for the U.S. Department of Veterans Affairs, commended the FTC and officials. “Not only do fraudulent charities steal money from patriotic Americans, they also discourage contributors from donating to real Veterans’ charities,” he said in a statement.
While most charities are trustworthy, patrons must be vigilant, says Art Taylor, president of the Better Business Bureau’s Wise Giving Alliance. “No one wants to say no to a charity that is purportedly supporting veterans. We all want to help these heroes,” he said, speaking at the FTC event. “And yet there are instances in which we have to be careful.”