Scamming Vets? Ohio Suing "Sham" Charity

COLUMBUS, OH — Help the Vets, a nonprofit based in Florida, reportedly ripped off Ohio donors for nearly three years, Ohio Attorney General Mike DeWine said. The charity is the target of a multi-state action accusing the organization of misleading donors across the U.S.

“There are many organizations in Ohio and across the U.S. that do great work to help veterans and service members,” DeWine said in a statement. “Unfortunately there are some groups that only pretend to do this kind of work. We want people to know the difference. Sham charities drain away money and resources that could be used by honest, legitimate organizations.”

Help the Vets reportedly collected more than $11 million from donors in Ohio and other states between 2014 and 2016. Less than five percent of its collections were used on charitable programming, DeWine said. Most of the funds went to the founder and paid fundraisers.

Ohio is joining an action that includes California, Florida, Maryland, Minnesota, Oregon and the FTC against Help the Vets. Under the action, the organization would be barred from soliciting donations, release its remaining funds to other charities and its founder, Neil Paulson Sr., would pay $1.75 million to be used for charitable contributions.

Help the Vets also worked under the names "American Disabled Veterans Foundation" and "Military Families of America." DeWine said investigators found that any benefits given to veterans by the nonprofit was "merely incidental."

The action against Help the Vets is part of a nationwide sweep against fraudulent charities. The sweep is being led by the FTC and is called "Operation Donate with Honor."

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