FTC Cracks Down On Fake Charities For Veterans

The Federal Trade Commission announced two major actions against allegedly fraudulent charities for veterans Thursday.

One alleged scam known as Help the Vets, took in $20 million in donations intended for wounded and disabled veterans and Another solicited cars, boats and timeshares for several made-up veterans’ charities.

In both cases, heartwarming pleas were made but most of the donations were never passed along to veterans, according to the FTC. In fact, 95% of the money donated to the group was spent on fundraising, administrative expenses, or paid to the “Help the Vets” founder, Neil Paulson Sr., according to the FTC complaint, which was filed with cooperation of six other states on Wednesday.

“Sadly, some con artists prey on that gratitude, using lies and deception to line their own pockets. In the process, they harm not only well-meaning donors, but also the many legitimate charities that actually do great work on behalf of veterans and service members.”

The FTC suggests on its website that people research charities before making donations and recommends checking out reports and ratings from BBB Wise Giving Alliance, Charity Navigator, CharityWatch, or GuideStar.