NEWARK
– The Attorney General’s Office
and the Division of Consumer Affairs have
filed suit against a Bergen County charity
for allegedly mishandling donations and
misleading consumers about how their donations
would be used, Attorney General Zulima V.
Farber and Consumer Affairs Director Kimberly
Ricketts announced today.
The complaint, filed in State Superior Court
in Bergen County, alleges multiple violations
of the Charitable Registration and Investigation
Act of 1994 and the state’s Charities
Regulations by Lovers of Animals Organization
(LOAO), a non-profit corporation based in
Ridgefield Park.
The state is seeking to assess civil penalties
and to permanently bar LOAO from registering
and operating as, among other things, a
charitable organization, independent paid
fund-raiser or solicitor in New Jersey.
The state also sought the court’s
permission to immediately collect and hold
all LOAO canisters and their proceeds pending
the final outcome of this matter.
In an Order to Show Cause with Temporary
Restraints, the Court found that emergency
relief in this situation was both warranted
and in the public interest. The Order, issued
by Judge Peter Doyne on August 1, authorizes
the state to immediately collect and impound
LOAO collection canisters and their proceeds
and orders LOAO to cooperate fully in and
not interfere with that effort. All proceeds
that are collected will be held in an interest-bearing
escrow account pending further order of
the court.
“We
have an organization that tugs at the heartstrings
of honest consumers to solicit donations
but then spends these monies on things that
do not benefit or help the animals,“
Attorney General Farber said. “We
seek swift action to ensure that no additional
consumers are cheated out of their hard-earned
money under false pretenses.”
For
the fiscal year ending 2005, LOAO’s
accounting records indicate $7,535.45 in
income and $7,432.41 in expenses. According
to IRS records, LOAO reported $7,094.80
in income and $7,054.80 in expenses for
the fiscal year ending 2005. These expenses,
paid for from the same petty cash account
where contributions were deposited, included
gasoline, tolls, motor vehicle repairs and
office supplies.
“Unfortunately,
disreputable organizations make every well-intentioned
consumer second guess their decision to
contribute to a charitable cause,”
said Consumer Affairs Director Ricketts.
“It is our intention, through this
case and others, to take strong and immediate
action against such bad actors to reassure
consumer confidence and provide a level
playing field for organizations that do
the right thing for the right reasons.”
The state’s complaint alleges that
LOAO failed to comply with the Charitable
Registration and Investigation Act and the
state’s Charities Regulations by:
- Failing
to exercise control over fund-raising
activities;
-
Making untruthful statements and misrepresentations;
-
Failing to include a required statement
on canisters;
-
Failing to maintain complete and accurate
records;
-
Failing to include required information
in a professional fund raising contract;
and
-
Failing to comply with the Attorney
General’s investigation.
Russell
Frontera, who is among the individuals responsible
for the collection of LOAO’s canisters,
entered into a Consent Order in June 1993
with the Division for violations of the
Charities Act and Charities Regulations.
The Consent Order barred Frontera from serving
as an officer, trustee, director or employee
of a charity for five years and required
him to notify the Division if he become
involved with a charitable organization
at any time thereafter. To date, Frontera
has never notified the Division of his involvement
with LOAO.
To facilitate the collection of LOAO canisters,
the Division asks that store owners who
are in possession of LOAO canisters pull
them off the counters and store them in
a secure location . Store owners should
then call the Division at (973)
504-6299 and an investigator with
the appropriate credentials will pick up
the canister. The Division should be notified
immediately if anyone other than a credentialed
investigator attempts to remove the canister.
Consumers are also encouraged to call the
hotline with information about the location
of canisters so that they can be collected.
Deputy Attorney General Brian M. Brennan
is representing the State in this matter.
In June, the Attorney General’s Office
and Consumer Affairs successfully obtained
a judgment and order barring the National
Animal Welfare Foundation (NAWF) and its
principal, Patrick G. Gemas, from future
charitable activities in New Jersey after
filing a lawsuit that, among other things,
alleged misuse of public donations.
The public can obtain information about
charitable organizations and paid fund-raisers
who are registered to operate in New Jersey
by contacting Consumer Affairs’ Charitable
Registration Unit at 973-504-6215
or by going to the unit’s
web site, www.NJConsumerAffairs.gov/ocp.htm#charity.
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