Another Deceptive Veterans' Charity Dissolved: NY AG

Yet another charity that pretended to help America's veterans will be shut down after a multi-state investigation. VietNow National Headquarters, Inc., a nonprofit corporation that used deceptive telemarketing solicitations falsely claiming that the charity was funding veterans services, medical facilities, and treatment in donors’ states, including New York, will be dissolved, and its officers will cooperate in investigations against the professional fundraisers they hired.

In fact, less than five percent of funds raised by the Illinois-based "charity" went to any charitable programs, New York Attorney General Eric Schneiderman said.

New York joined the case as part of Schneiderman’s Operation Bottomfeeder, an ongoing effort that targets a business model of shell charities that exploit popular causes, the professional fundraisers who take the lion’s share of donations and make misrepresentations, and other entities who facilitate the abuses. Prior Operation Bottomfeeder investigations and settlements include the National Vietnam Veterans Foundation (whose president and founder was sentenced to jail last month) and the Breast Cancer Survivors Foundation.

“With so many New York veterans in real need, it’s galling that a so-called charity would pretend to help them in an effort to line their own pockets,” Schneiderman said in the announcement. “Operation Bottomfeeder should serve as a warning to the scammers who seek to exploit veterans, cancer patients, and other causes to make a quick buck: we will stop you. I urge all New Yorkers to give, but give wisely, by following our tips.”

Specially with Veterans Day coming up and the "giving season" right on its heels, Schneiderman encourages all New Yorkers to follow his Tips for Charitable Giving, available here.

Want to know how your favorite charity rates? Want to learn about one that's asking you for money?

The AG's Charities Bureau releases an annual “Pennies for Charities” report, revealing how charitable donations obtained by many professional fundraisers are largely spent on fundraising and administrative expenses, with only a small fraction left for charitable work. The latest Pennies for Charities report may be accessed here.

The settlement against VietNow, joined by 24 states, requires the appointment of a receiver to dissolve the shell charity. The settlement also obtains injunctive relief against VietNow’s directors and officers and requires their cooperation in investigations of VietNow’s professional fundraisers. Upon dissolution, VietNow’s remaining funds will be paid to two national and well-respected veterans charities, Fisher House Foundation and Operation Homefront, Attorney General Schneiderman said.

VietNow and its officers and directors are permanently removed from controlling VietNow and a receiver is appointed to administer and dissolve VietNow.

• VietNow is permanently enjoined from soliciting contributions from the public.
• Defendants are required to cooperate with the receiver, and with all interested states in any present or future investigation of any professional fundraisers for VietNow during the period in question.
• VietNow’s controlling officers or directors are permanently enjoined from serving as charitable fiduciaries or acting as professional fundraisers.
• Upon dissolution of VietNow, the receiver will pay remaining funds to two highly-rated national veterans charities, Fisher House Foundation and Operation Homefront. VietNow’s assets as of May 2017 totaled approximately $545,000.