Telemarketing Scam Swindled $190,000 Through Fake Veterans Charities
After an investigation into fraudulent charities as part of “Operation Bottomfeeder,” Attorney General Eric Schneiderman has dissolved a Brooklyn telemarketing firm that bilked unsuspecting donors for nearly $190,000 that would allegedly go to assist Vietnam Veterans, the AG’s office announced this week.
The Brooklyn-based firm, Menacola Marketing Inc., claimed to be raising funds for the National Vietnam Veterans Foundation (NVVF), which was a fake charity previously shut down by the Attorney General. From 2010-2016, telemarketers working out of call rooms in the borough told their callers that donations would go towards help for veterans, including “personal care packages, guide books of essential services, donations to food pantries, and transportation to and from medical appointments.”
At any given time, between 20 and 50 callers solicited donations for the fake charity, using scripts given to the company by Mark Gelvan, a New Jersey-based fundraiser who is banned from fundraising in New York, according to the statement.
Instead of helping out veterans in need, roughly 84% of the donations were funneled back to Menacola Marketing, run by Joseph and Katherine DeGregorio. According to the Attorney General, a 4% kickback went to Gelvan—who the DeGregorios knew was banned in New York—and the rest was “squandered by abuse and mismanagement.”
As part of their plea deal, the Joseph and Katherine DeGregorio will have to dissolve Menacola Marketing and are banned from soliciting for charity ever again. Additionally, they’ll have to pay out $100,000 in restitution, spread among actual, reputable veteran’s charities.
“We have zero tolerance for shell charities that shamelessly exploit our veterans and other New Yorkers in need in order to line fundraisers’ pockets. New Yorkers should be able to donate with confidence and know that their money will actually support the causes advertised,” said Attorney General Eric Schneiderman. “Through our Operation Bottomfeeder, we’ll continue to aggressively pursue both bogus charities and the professional fundraisers who take advantage of New Yorkers’ good will.”
