A.G. Schneiderman Report Finds Many Professional Fundraisers Keep Significant Portion Of Charity Dollars They Raise

Professional Fundraisers Retain More Than One-Third of Donations to Campaigns They Conduct

This Year’s Expanded "Pennies for Charity" Report Details Costs Of Fundraising Campaigns Conducted By Professional Fundraisers; Covers Telemarketing, Direct Mail, E-Mail And Other Fundraising Mechanisms 

A.G. Also Offers Key Tips For Donors

Schneiderman: Be Careful With Your Charitable Giving; Not All Fundraisers Are Created Equal

   Attorney General Eric T. Schneiderman today released his “Pennies for Charity: Where Your Money Goes; Fundraising by Professional Fundraisers” report, which found that fully one-third of charitable donations ended up in the pocket of the professional fundraisers. 

This year’s report expanded its focus beyond telemarketers to include a broader range of solicitation methods conducted by professional fundraisers, including direct mail, email, and internet fundraising campaigns.

New York has a robust charitable sector, supported by generous giving by New Yorkers.  In fact, New Yorkers gave a total of $17.2 billion in reported donations in 2015—the year covered by the report—the second highest giving level in the nation, after California.  Of this total, more than $1 billion was raised through 1,143 fundraising campaigns conducted by professional fundraisers on behalf of charities.  These campaigns are the focus of this report. The report and the searchable Pennies for Charity database that contains the data underlying it can be found at www.CharitiesNYS.com.

Of the nearly $1.1 billion raised through campaigns conducted by professional fundraisers, charities netted just over $718 million, or 65.5% of the proceeds, while professional fundraisers kept $379 million, or 34.5%.

“New Yorkers should know how their charitable dollars are being spent,” Attorney General Schneiderman said. “Our Pennies for Charity report shines a light on the portion of charitable dollars that is pocketed by outside fundraisers, and our Charities Bureau will hold unscrupulous or fraudulent fundraisers accountable.”

This year’s report included a much bigger data set than previous years’ reports, as it focused on various mechanisms for fundraising in addition to telemarketing, which was the sole focus of prior Pennies for Charities reports and which was found to be the costliest fundraising mechanism. This year’s report finds that professional fundraisers overall retain a high percentage of charitable dollars.

The "Pennies for Charity" report aggregates information from fundraising reports filed with the Attorney General’s Charities Bureau for campaigns conducted by professional fundraisers on behalf of charities in the previous year.  Professional fundraisers must register with the Office of the Attorney General and provide closing statements that break down the revenue raised and the expenses generated by the campaign. 

Other significant findings from analyzing the 1,143 fundraising campaigns covered by this report include:

• In 239 campaigns, or approximately 20% of the campaigns covered in the report, the charities retained 70% or more of the funds raised, with 30% or less going to cover the costs of the professional fundraiser.

• In 622 campaigns, or approximately 54% of the total, charities retained less than half of the funds raised.

• In 192 campaigns, or nearly 17% of the total, fundraising expenses exceeded revenue, for a total loss of $16.7 million.

The Office of the Attorney General actively investigates suspect fundraising practices.  In 2015, Attorney General Schneiderman secured a $100,000 penalty against the founder of the National Vietnam Veterans Foundation and barred him from ever again serving as a director, officer, or trustee of any non-profit or charitable organization after finding that nearly 90% of revenue was spent on fundraisers and supporting his lavish lifestyle.  And in the largest multi-state charity fraud action to date, the Attorney General, 49 other states, and the Federal Trade Commission secured a $75 million settlement ($3 million of which came to New York) against two affiliated sham cancer charities, and forced the dissolution of two other affiliates, which allocated only 3% of proceeds for their intended charitable purposes. The president was banned from profiting from any charity fundraising in the future.

To assist charities in navigating the world of professional fundraisers, the report includes A Note to Charitable Organizations. 

The report also includes Tips for Donors, including specific guidance for responding to phone, direct mail, or online solicitations. Key tips include:

• Research the Charity.
  • Check out the charity’s website.
  • Consult the Office of the Attorney General’s Charities Bureau website to review an organization’s tax returns and its financial report.
  • Consult the Office of the Attorney General’s Pennies for Charities database to see its fundraising costs and results.

• Never Donate by Cash Or Wire Transfer. It's best to donate by credit card.

• Donate Via Secure Web Addresses: When donating online, make sure the website is secure: the web address should begin with “https.”

• Resist Pressure To Give On The Spot. If you receive a call from a telemarketer, do not feel pressured to give over the phone. You can ask to receive information about the cause and a solicitation by mail.

• Ask How Your Donation Will Be Used. Ask specifically how the charity plans to use your donation, including the services and organizations your donation will support. Avoid charities that make emotional appeals and are vague in answering your questions.

• Report Suspicious Organizations. If you believe an organization is misrepresenting its work, or that a scam is taking place, please contact the Attorney General’s Charities Bureau at charities.bureau@ag.NY.gov or (212) 416-8401.

BRONX MAN CONVICTED OF MANSLAUGHTER FOR KILLING ROOMMATE

Defendant Bludgeoned 63-Year-Old Man With Shovel 

  Bronx District Attorney Darcel D. Clark today announced that a Bronx man has been convicted of first-degree Manslaughter for the 2014 killing of his 63-year-old roommate, whom he fatally struck multiple times with a shovel following a dispute. 

  District Attorney Clark said, “The defendant brutally beat to death an elderly man who suffered from poor health and had welcomed him into his home. After striking the victim with a shovel, the defendant left him to die on the floor. Now he faces many years in prison for this callous crime.”   

  District Attorney Clark said the defendant, Armando Sanchez, 21, who was living at 2185 Grand Concourse, was found guilty today of first-degree Manslaughter by Acting Bronx Supreme Court Justice Margaret Clancy after a bench trial that lasted about four weeks. Sanchez faces up to 25 years in prison when he is sentenced on January 24, 2017. 

  According to trial testimony, on November 12, 2014, Sanchez argued with his roommate, Elvin Ramirez, 63, with whom he had been living for the past month in Ramirez’s 2185 Grand Concourse apartment. The following day, Ramirez was found dead in his apartment. Sanchez was arrested on December 14, 2014 after surveillance video from the building showed him attempting to cover his face as he fled the residence.

Comptroller Stringer Releases Alarming New Numbers on “High Priority” ACS Investigations

Following the Zymere Perkins Tragedy, New Initial Findings Released To ACS

ACS Failed to Follow Its Own Protocols in Nearly 3,700 “High Priority” Investigations 

   New York City Comptroller Scott M. Stringer today released disturbing new data in the initial findings of his office’s investigation into the Administration for Children’s Services begun after the tragic death of Zymere Perkins. The new numbers demonstrate how dysfunction occurs at ACS – and shed light on how children can slip through the cracks.

The Comptroller’s Office reviewed nearly 3,700 “high priority” investigations ACS conducted on complaints received during a three-month period between July and September 2016. Those investigations involved either a child’s death or at least four prior complaints of abuse or neglect in a child’s household, or both. The Comptroller’s Office found the following violations of ACS protocols:

• 73 percent – or 2,360 cases – of the closed ACS investigations lacked the required minimum number of manager’s reviews, and 32 percent lacked the required number of supervisor’s reviews.
• In 68 percent – or 2,516 cases – of both open and closed high-priority ACS investigations, a “Risk Assessment Profile” was not completed within 40 days.
• 53 investigations were closed without ACS investigators ever meeting with the child who was allegedly abused.
• In 22 percent of the investigations, ACS investigators did not meet with the child within 24 hours of an abuse allegation.
• In 26 percent of investigations, ACS investigators did not meet with the child the required number of times.

“Behind these percentages are vulnerable children who desperately need help. Behind these numbers, there are lives at stake. Right now, the City is failing them. We must continue to demand change. This is too important,” New York City Comptroller Scott M. Stringer said. “The takeaway from these numbers is simple. Regulations are in place to save lives, but ACS is failing because it’s not following its own protocols. We need to see real, long-term change at this agency.”

In June 2016, Comptroller Stringer released an audit of ACS, which found that incomplete and poorly supervised investigations put abused children at risk. This follow-up investigation was announced following the death of Zymere Perkins. The Comptroller’s Office will continue to look into ACS’s performance of its child-protective investigative responsibilities in the coming months.

U.S. Attorney Files Civil Rights Suit Against Bronx Developer To Remedy Pattern And Practice Of Inaccessible Design And Construction Of Apartment Buildings

  Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has filed a federal civil rights lawsuit against ABRAHAM STRULOVITCH to require him to remedy conditions at two rental complexes in the Bronx and in Orange County to make them accessible to people with disabilities and to ensure that two rental complexes currently under construction by STRULOVITCH in the Bronx will be accessible.  

Manhattan U.S. Attorney Preet Bharara said: “The Fair Housing Act’s accessibility provisions were enacted to ensure that people with disabilities have the same access to housing as everyone else.  With today’s lawsuit, we seek to ensure that Strulovitch fixes the current inaccessible conditions at Riverdale Parc and Bluestone Commons as well as at his ongoing construction projects.  This Office will continue to use all available tools to enforce the FHA’s promise of accessibility for people with disabilities.” 

The Fair Housing Act’s (“FHA”) accessible design and construction provisions require multifamily housing complexes constructed after January 1993 to have basic features accessible to persons with disabilities.  According to the allegations in the Complaint, STRULOVITCH has engaged in a pattern and practice of discriminatory conduct, as evidenced by the numerous inaccessible conditions at Riverdale Parc, a 54-unit rental complex in the Riverdale section of the Bronx designed and constructed in 2014, and Bluestone Commons, a 70-unit rental complex for senior residents in Maybrook, New York, designed and constructed in 2015.  The inaccessible conditions alleged include, for example, an excessively high threshold at the main entrance to Riverdale Parc, as well as insufficiently wide doorways within the rental units at both Riverdale Parc and Bluestone Commons.  Other inaccessible conditions include excessively high thresholds to balconies within the rental units at Bluestone Commons and inaccessible locations of thermostats or other environmental controls in the rental units at Riverdale Parc and Bluestone Commons.

The Complaint further alleges that STRULOVITCH currently is actively involved in designing and constructing two other rental complexes in the Bronx – 640 West 238th Street and 3707 Blackstone Avenue – that will contain a total of more than 90 rental units.  In the Complaint, the United States also seeks a court order requiring STRULOVITCH to take steps necessary to ensure that both 640 West 238thStreet and 3707 Blackstone Avenue will be constructed in compliance with the Fair Housing Act’s accessibility requirements.

The case is being handled by the Office’s Civil Rights Unit.  Assistant U.S. Attorneys Li Yu, Jacob Lillywhite, Jessica Jean Hu, and Natasha Teleanu are in charge of the case.

EDITOR'S NOTE:

This blog has been chronicling the building of the 640 West 238th Street since the demolition of the one story house on the lot. The developer has had nothing but a lack of respect and no concern to the community, and now we know why. The developer during the building of 640 West 238th Street has been caught on camera not abiding by rules of New York City permits which were issued, and has ruined West 238th Street and the formerly nice island that is in the middle of the street in front of West 238th Street. Just check the archive section of this blog for the many reports and photos of the building of 640 West 238th street.

Manhattan U.S. Attorney Announces $30 Million Settlement With Total Call Mobile For Defrauding Government Program Offering Discounted Mobile Phone Services To Low-Income Consumers

Total Call Mobile Admits to Seeking and Receiving Reimbursement for Tens of Thousands of Ineligible Consumers and Agrees to Cease Participating in the Government Program

   Preet Bharara, the United States Attorney for the Southern District of New York, and Travis LeBlanc, Federal Communications Commission (“FCC”) Enforcement Bureau Chief, announced today a $30 million settlement of a civil fraud lawsuit against TOTAL CALL MOBILE, LLC (“TOTAL CALL”), for defrauding the Lifeline Program, a federal government subsidy program that offers discounted mobile phone services to eligible low-income consumers.  TOTAL CALL, based in Gardena, California, has enrolled Lifeline subscribers in 19 states and territories.  The United States’ Complaint alleges that Total Call, with the knowledge and involvement of its affiliate, co-defendant LOCUS TELECOMMUNICATIONS, LLC, and their shared corporate parent, co-defendant KDDI AMERICA, INC., knowingly submitted false claims for federal payments by seeking reimbursement for consumers who did not meet Lifeline eligibility requirements.  As part of the settlement, TOTAL CALL admitted and accepted responsibility for conduct alleged in the Complaint, including seeking reimbursement for tens of thousands of ineligible consumers, and agreed to no longer participate in the Lifeline Program.  The payment also resolves an administrative investigation conducted by the FCC, and the FCC has entered into a separate administrative agreement with TOTAL CALL as part of this global settlement.

Manhattan U.S. Attorney Preet Bharara said:  “By routinely looking the other way while its sales agents repeatedly engaged in obvious fraud, Total Call Mobile undermined the goals and depleted the resources of a federal subsidy program designed to provide discounted phone services to low-income individuals.  While it certified its compliance with FCC rules, Total Call enrolled and claimed federal payments for tens of thousands of consumers who did not qualify for the program.”

FCC Enforcement Bureau Chief Travis LeBlanc said:  “We have no toleration for fraud.  This unprecedented $30 million settlement along with a permanent ban from the Lifeline Program affirms our commitment to pursue the strongest sanctions for those who defraud or abuse the Universal Service program.  We thank our partners at the Department of Justice for working with us to make sure that companies that commit fraud are held accountable to the fullest extent of the law.”

To be eligible for the Lifeline Program, a consumer must have income that is at or below 135% of the Federal Poverty Guidelines or participate in one of a number of specified federal, state, or Tribal assistance programs.  Eligible Telecommunications Carriers (“ETCs”), such as TOTAL CALL, receive monthly federal payments for providing discounted phone services to qualified consumers.  As a condition of receiving these payments, an ETC must comply with regulations established by the FCC, which, among other things, require the implementation of policies and procedures for ensuring that enrolled subscribers are eligible for the program and that households do not receive more than one Lifeline phone.  ETCs must certify their compliance with Lifeline rules as part of an annual reporting requirement and with each monthly request for payment.

As alleged in the Complaint filed in Manhattan federal court:

TOTAL CALL relied primarily on in-person sales events to enroll consumers in the Lifeline Program.  The company contracted with “master agents,” who in turn hired “field agents” to engage in face-to-face marketing at public events and spaces.  These field agents were expected to enter electronically a consumer’s demographic information and capture images of the consumer’s proof of identification and proof of eligibility for the Lifeline Program (e.g., Medicaid card, food stamp card).  TOTAL CALL had access to the information entered by the field agents. 

TOTAL CALL, with the knowledge and involvement of the other defendants, engaged in a widespread practice of seeking federal reimbursement for consumers who did not meet Lifeline’s eligibility requirements.  TOTAL CALL field agents employed a range of fraudulent enrollment practices, including repeatedly using the same eligibility proof to enroll multiple consumers, tampering with identification or eligibility proof documentation, intentionally altering the way consumer information was input so as to avoid the detection of duplicate subscriber enrollments, and submitting false consumer addresses and social security numbers.  Although TOTAL CALL’s managers were notified that high volume field agents were engaging in blatantly fraudulent enrollment practices, TOTAL CALL continued to approve and seek federal reimbursement for consumers enrolled by these agents.

In addition, defendants failed to implement effective procedures and systems for preventing the enrollment of duplicate or otherwise ineligible Lifeline subscribers.  In many instances, even a cursory review of the submitted information and documentation or a straightforward search of the existing customer database would have shown that an application was faulty and should be denied.  However, to maximize enrollments and meet its aggressive sales targets, TOTAL CALL approved applications with little or no scrutiny, and then submitted grossly inflated reimbursement requests with false certifications of compliance with Lifeline rules.

Today, U.S. District Court Judge Jed S. Rakoff approved a settlement stipulation to resolve the Government’s claims against the defendants.  Under the settlement, defendants are required to pay approximately $22.54 million to the United States, and to forego payment of approximately $7.46 million in Lifeline reimbursements claimed by TOTAL CALL but held by the Government pursuant to a prior FCC Order.  Further, TOTAL CALL has agreed to cease providing Lifeline services by December 31, 2016, and not to participate in the Lifeline Program in the future. 

As part of the settlement, TOTAL CALL admits, acknowledges, and accepts responsibility for the following conduct:

• TOTAL CALL failed to implement effective policies and procedures to ensure the eligibility of the subscribers for whom TOTAL CALL requested reimbursement for Lifeline discounts, as required by Lifeline rules.
   

• For much of the period from September 2012 to May 2016, defendants allocated insufficient staff and resources to verifying the eligibility of Lifeline subscribers, and failed to adequately screen and train the field agents. 
  
  
•  Hundreds of TOTAL CALL field agents engaged in fraudulent practices to enroll consumers who were duplicate subscribers or who were otherwise not eligible for the Lifeline Program.  TOTAL CALL failed to put in place effective mechanisms to oversee the conduct of field agents and detect and prevent field agent abuses. 
  • Certain field agents repeatedly used the same benefit program eligibility proof to enroll multiple consumers.  Agents frequently enrolled several different individuals by submitting an image of the same improperly obtained program eligibility card or, in some instances, a fake program eligibility card. 
  • Certain field agents slightly altered the way in which a subscriber’s demographic information was input to avoid having TOTAL CALL identify the application as a duplicate. 
  • Certain field agents tampered with identification or program eligibility cards, and intentionally transmitted blurry or partial images of the documentation, to try to conceal the fact that the information on the documentation did not match the subscriber’s actual name or the other information on the Lifeline application. 
  • Certain field agents provided their own signature, printed their own name, or wrote a straight or curvy line where the prospective subscriber’s signature was supposed to appear on Lifeline applications. 
  • Certain field agents submitted false consumer addresses and social security numbers to enroll duplicate or otherwise ineligible subscribers.  

• At the time that TOTAL CALL submitted many of its monthly remittance requests, TOTAL CALL knew that its policies and procedures for reviewing Lifeline applications, verifying consumer eligibility, conducting duplicate checks, and detecting duplicate subscribers were deficient.  
• TOTAL CALL sought and received reimbursement for tens of thousands of consumers who did not meet the Lifeline eligibility requirements.

In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had previously been filed under seal pursuant to the False Claims Act.

Mr. Bharara thanks the FCC’s Office of Inspector General and the FCC’s Enforcement Bureau for their investigative efforts and assistance with the case.

Annual Bronx Chanukah Menorah Lighting

  While this event takes place at the Bronx County Courthouse, due to construction the Annual Chanukah lighting was moved this year to the Riverdale This year Chanukah falls on Saturday night which happens to be the same day as Christmas Eve. Rabbi Greenberg of the Bronx Jewish Community Council said that the Bronx tradition dates back to 1987 with then Bronx Borough President Freddy Ferrer. The photos should tell the rest of the story.

Above - The SAR Academy Elementary School Choir anxiously awaits their chance to sing.

Below - The Choir sang several songs including both national anthems of the United States and the State of Israel.

Above - You can see the smiles on the students as they sing.

Below - Ms. Arlene Salmon of the BJCC was the Mistress of Ceremonies.

Above - Bronx Borough President Ruben Diaz Jr.

Below - Congressman Eliot Engel.

Above - Rabbi Greenberg says the Chanukah prayer.

Below - Rabbi Greenberg helps Bronx BP Diaz light the first candle.

Above - Congressman Engel lights one of the candles.

Below - Assemblyman Jeffrey Dinowitz lights another candle.

Senator Diaz Welcomes All to Participate in the Christmas Eve Humanitarian Relief Effort To Be Held In Bronx County

Senator Reverend Ruben Diaz  welcomes individuals, community organizations and companies to participate in the  “Christmas Eve Humanitarian Relief Effort” to help flood victims in the Dominican Republic on Saturday, December 24, 2016 from 12PM–4PM on Southern Boulevard and Aldus Street in Bronx County.

Leaders for the "Christmas Eve Humanitarian Relief Effort" hope to receive donations such as non-perishable food, clothing, medical supplies and financial contribution to send to flood victims in the Dominican Republic.

This effort has been coordinated by Senator Rev Ruben Diaz, the New York Hispanic Clergy Organization, Radio Vision Cristiana International, the Dominican Republic Presidential Liaison Committee for USA Ministers presided by Bishop Nicolas Angustia, Livery Taxi Industry Committee, Salcedo Cargo Express, Super Canal Caribe Television, Radio Cantico Nuevo, Inc., NYPD 41^st  Precinct, and elected officials.