NEWARK
– An unregistered charitable organization
that solicited donations to supposedly save
horses from being killed and processed into
pet food will cease operations and pay up
to $581,000 to resolve a lawsuit filed against
it by the State Division of Consumer Affairs
last December.
Defendants
NJ Horse Angels and its two trustees, Sharon
Catalano-Crumb, 54, and Frank Wikoff, 55,
who live in Phillipsburg, N.J., will repay
$57,129 in misused donations to the Division
of Consumer Affairs. The Division in turn
will donate the funds to registered non-profit
horse rescue organizations.
An
investigation by the Charities Registration
and Investigation Section within the Division
of Consumer Affairs found that $57,129 in
donations were misappropriated by Catalano-Crumb
and used by her for trips to Atlantic City
casinos, personal shopping, meals, pre-paid
phone cards. Monies were also diverted in
the form of cash withdrawals. Some donations
were used for horse rescues.
Both
Catalano-Crumb and Wikoff are permanently
barred from soliciting charitable donations
in New Jersey. NJ Horse Angels will cease
operations and take down its online web
pages that were used for soliciting donations,
under the terms of the Final Judgment and
Consent Order between the defendants and
the Division of Consumer Affairs.
“This
settlement requires repayment of misused
donations and puts the monies to the rescue
and care of horses, as donors intended,”
Attorney General Paula T. Dow said. “Just
as important, the defendants are permanently
enjoined from soliciting charitable donations.”
In
addition to repaying misappropriated donations,
the defendants are required to pay $23,299
in costs attributed to the investigation.
A
total of $500,625 in suspended civil penalties
also was assessed. The civil penalties will
be vacated after five years if the defendants
do not violate the settlement terms, repay
the misused donations, and reimburse the
investigative costs.
“Using
sympathetic stories of horses on the brink
of demise, these defendants preyed on human
compassion for their personal enrichment,”
said Thomas R. Calcagni, Acting Director
of the Division of Consumer Affairs. “This
resolution puts an end to their scheme,
and provides punitive measures to ensure
compliance.”
NJ
Horse Angels operated under several different
names, including NJ Horse Angels Rescue,
NJ Killpen Horses…Horse Angels of
Facebook, Camelot Auction Horse Angels,
and The Forgotten Angels. NJ Horse Angels
had more than 4,900 registered friends on
one social networking website.
A
searchable database that lists the approximately
20,000 charitable organizations registered
by the N.J. Division of Consumer Affairs
can be found online at www.njconsumeraffairs.gov/charity/chardir.htm.
A financial synopsis is posted online for
each registered organization. Additional
information and copies of complete financial
filings can be obtained by calling the Charities
Registration Unit at 973-504-6215.
Calcagni
noted that registered charitable organizations
are required to file annual financial disclosures
with the Division of Consumer Affairs. A
listing of the Top Ten most inquired about
charities in the State, and information
on how those and other charitable organizations
spend donations, can be found at www.njconsumeraffairs.gov/charity/inquired.
Deputy
Attorneys General Anna M. Lascurain, Chief
of the Securities Fraud Prosecution Section,
and Elizabeth R. Lash, represented the state
in this matter. Volunteer attorney Aris
Dutka assisted. Investigator Patrick Mullan
in the Division’s Office of Consumer
Protection conducted the investigation.
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