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The Honolulu Advertiser
Posted on: Wednesday, May 20, 2009

AG's office joins in federal settlement against telemarketing firm


By Rick Daysog
Advertiser Staff Writer

The Attorney General’s office has joined the Federal Trade Commission and charity regulators in 35 states in a settlement against a Milwaukee-based telemarketing firm that solicited money from local donors.

The AG’s office said the firm, Community Support Inc., claimed to be raising money to help law enforcement groups but wound up keeping 83 percent or more of the collections.
“Donors want to be sure their contributions benefit the causes they support, but unfortunately some false charities and telemarketers try to take advantage of consumers’ goodwill and generosity,” said Attorney General Mark Bennett.
The AG's office accused CSI of “consistently violating Hawaiçi laws over many years.” The offenses included:
-- Misrepresenting how much of any donations would go to a charity,
-- Misrepresenting how much money would end up being spent in the local community,
-- Making harassing calls to potential donors, and
-- Using callers who falsely claimed to be law enforcement officials or veterans.
Under the settlement, CSI agreed to cease the illegal acts, provide regular reports to state law enforcement officials and be more responsible for employees’ training and conduct.
Violations of these terms could results in fines of up to $10,000 for each case.
The settlement is part of “Operation False Charity, a joint FTC and multi-state crack down on fraudulent charities that claim to help police, firefighters and veterans.