Posts Tagged ‘bogus charities’

Recent Federal Trade Commission Consumer Warnings


Rogues tap holiday spirit, disaster relief to steal in the name of charity


Posted Dec. 26, 2016, at 9:11 a.m.
Your free directory of IRS-recognized charities and nonprofits: 9127 organizations. Search Maine or your town

Your free directory of IRS-recognized charities and nonprofits: 9127 organizations found in Maine.

When soliciting donations from 2008 to 2012, fundraisers for four now-defunct “charities” said they spent 100 percent of their money on services including taking patients to chemotherapy sessions, buying pain meds for children and hospice care.

Instead, the money went for meals, rides on jet skis and cruises to the Caribbean.

In a lawsuit, the Federal Trade Commission called all four groups “sham charities.” Officials from all 50 states and the District of Columbia joined in the suit, which accused charity officials of spending most of the $187 million they raised on themselves and their fundraisers.

The legal action led to the shutdown of the Cancer Fund of America, Cancer Support Services, Children’s Cancer Fund of America and the Breast Cancer Society. Only a fraction of the millions of dollars the groups took from consumers was recovered.

The amount of money fundraisers were able to garner shows how willing consumers are to donate to causes they believe are genuine. Scammers know this, and for that very reason they create names for their fake groups that sound like real charities.

At this time of year, when many of us make donations to our favorite causes, let’s make sure we’ve done our due diligence. Be skeptical of cold calls or bulk mailings that you may receive, seeking donations that supposedly will benefit veterans and military families, sick children or police and firefighters.

Scam artists follow the news closely, and they look for items that will make readers respond emotionally. In June, crooks reacted quickly following a shooting rampage that killed 49 people and injured 53 others in Orlando, Florida. They set up phony charities pretending to help the victims and their families; in fact, the money they scammed lined their own pockets.

Pretending to help victims of floods, earthquakes and other disasters is a multibillion-dollar criminal enterprise. Before you decide to donate, ask questions to find out how your money will be used.

If you’re responding to an online appeal and preparing to click to “donate,” look at the name of the organization in your browser window. If the domain name is hidden, is not familiar or is different from the one in the text, think twice about clicking.

Treat all pleas for your money with a healthy dose of skepticism. Real charities welcome the chance to send you literature by mail. They know that informed consumers will support them and tell others about worthwhile causes. Scammers want a decision right away, and some ask for payment through gift cards or wire transfers — these clearly are scams.

Maine Attorney General Janet Mills has tips on giving to charities and avoiding getting ripped off in the process. Visit for those suggestions.

The Federal Trade Commission has additional information at

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer, ME 04412, visit or email

Check on Unknown Charities, Especially Following Tragedies

Maine’s Department of Professional and Financial Regulation Encourages Check on Unknown Charities, Especially Following Tragedies 

Phony Charities Reported following Hurricane Sandy and School Shooting in Newtown

GARDINER  –  Citing reports of bogus charities springing up in the aftermath of Hurricane Sandy and the school shooting in Connecticut, Commissioner Anne Head from the Department of Professional and Financial Regulation is encouraging Maine residents to check the legitimacy of unknown charities, particularly those that seem to quickly appear following a tragedy.  She urges potential donors to always research charitable organizations before making a donation.  A quick check with the Department will provide essential information, such as whether the charity is authorized to raise money in Maine and whether disciplinary action has ever been taken against the organization.

Under Maine law, charitable entities and those who solicit money for charities, are required to become licensed with the Department’s Office of Professional and Occupational Regulation before soliciting contributions.  The agency collects information about charitable activity in Maine and makes it available to the public.  The Office also receives, and acts upon, complaints related to charitable solicitation.

“Charitable solicitation scams aren’t new, but those attempting to take advantage of people’s generosity in the aftermath of natural disasters and other tragedies seem especially reprehensible,” Commissioner Head commented.  “Because the victims of scams might never know they’ve been taken advantage of, or may be reluctant to report their loss of money, it’s important for government agencies to be proactive and alert the public about the very real potential for fraud.”

Commissioner Head advises individuals to ask questions and seek printed information about unknown charities if solicited for a donation; to confirm their legitimacy with regulators; to never send cash or wire money when requested to do so; to always keep receipts of donations; and to report concerns or complaints about questionable solicitations with the Department and law enforcement.

Information about charities can be obtained through the Department’s website, specifically at Links allow for the search of licensed charitable organizations, as well as disciplinary actions.  Questions and complaints can also be made by calling the Charitable Solicitations Program at 207-624-8525.

Additionally, the website includes a News Alert with further guidance for avoiding scams.  Information and other resources are also available from the Federal Trade Commission (

The Department of Professional and Financial Regulation protects the citizens of Maine through the regulation of State-chartered financial institutions, the insurance industry, grantors of consumer credit, the securities industry, and numerous professions and occupations providing services to the public.  In order to encourage the development of sound ethical businesses which serve the needs of Maine citizens, the Department fosters a healthy business environment through competent, impartial and efficient regulation.

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