New Jersey-Based Telephone Fundraisers Banned from Soliciting Donations; Will Pay $18.8 Million for Violating FTC Order
April 3rd, 2010. Published under Fraud, Scams. No Comments.
Defendants Deceived Consumers into Believing All Donations Would Help Local Police, Firefighters, Veterans The operators of a New Jersey-based telemarketing scheme will pay a record $18.8 million and leave the charitable donation business to settle charges that they violated a Federal Trade Commission order by misleading consumers to believe that they were donating directly to legitimate charities serving police, firefighters, and veterans, when in fact only a small slice of the donations actually went to these charities. The civil penalty against Civic Development Group, LLC; CDG Management LLC; and owners Scott Pasch and David Keezer is the largest ever in an FTC consumer protection case.