PA Fines Alleged Charity Phone Marketers $4 Million
Three allegedly fraudulent charity telemarketers have been ordered to pay more than $4 million in fines, civil penalties and restitution as the result of a lawsuit over deceptive fundraising activities, according to Pennsylvania Attorney General Tom Corbett.
Named as defendants were: The Publishing Group, Inc., of Charlotte, NC, doing business as The Law Enforcement Times, The Drug Prevention News, The Volunteer Fireman, The Rescue Squad and The United Veterans’ Report, according to Corbett.
Also named were several telemarketers who sold advertisements for these publications, including Richard Lazar, of Bucks County,PA; David Feldman, of Las Vegas and Barry Kopstein, of Boca Raton, FL,noted the AG.
Corbett said that the Commonwealth Court issued a judgment order on Sept. 2nd, following a trial earlier this year, ordering the payment of $4,060,839.50 in fines, penalties and restitution. Feldman was personally ordered to pay $3,342,006.95 for his alleged role in the scheme; Lazar was ordered to pay $660,712.20 and Kopstein was ordered to pay $58,120.35.
The lawsuit accused the defendants of orchestrating a statewide scheme to mislead state businesses by falsely claiming that money raised by advertising sales for these magazines would to benefit law enforcement, firefighters, public safety personnel or drug prevention organizations in their local communities, when that typically was not true, according to Corbett.
Corbett noted that the award issued by Commonwealth Court Senior Judge Barry F. Feudale includes a requirement that the defendants pay $402,884.60 in restitution. By court order, that money will be distributed to police, fire and emergency service organizations across Pennsylvania- in keeping with the intent of the contributions that were made by businesses that purchased advertisements in these publications.
The defendants were also accused of failing to register as a charitable organization by failing to file corporate documents and financial reports; failing to register as professional fundraisers; falsely claiming to be law enforcement officers, firemen or other public safety personnel when attempting to sell advertising; along with other violations of Pennsylvania’s Charities Act, according to Corbett.
Corbett said that the court order bans Feldman, Lazar and Kopstein from any type of charitable solicitation involving state residents until all of the fines, penalties and restitution have been paid in-full.
