Veteran Charities – Not All Exist to Benefit Veterans

Matt Worley, Esq.


There are around 1.6 million non-profit organizations in this country.  Of those, upwards of 65,000 include the word “veterans” in their title.  With so many seeking donations, it is more important than ever to be confident that when you give to a veteran charity your donation will actually be used to help our veterans.


Many people assume that if an organization has been granted 501(c)(3) status by the IRS, it went through a stringent application and review process and must therefore be legitimate.  However, the truth is that there is minimal oversight of the process of creating a non-profit organization.  In fact, the IRS recently simplified the application for 501(c)(3) tax exemption from 12 pages (plus schedules) down to only 3 pages.


With almost no ongoing oversight, many of these groups use only a very small portion of donation money to fund products and services for veterans.  Worse still, there are fraudulent organizations that are used only to line the pockets of their creators.


For example, the United States Navy Veterans Association (USNVA) was a registered 501(c)(3) charity.  It had many markings of a legitimate non-profit – a quality website, supposedly in operation since 1927 and dozens of purported chapters across the country with thousands of members nationwide.  In reality, USNVA was run by one man out of his duplex in Florida.  This sham charity bilked donors out of nearly $100 million over a seven-year period.  The ringleader was arrested in 2012 and sentenced to 28 years in prison and $6 million in fines, but sadly most of these donations will never be recovered.


Fortunately, there are resources available to assist potential donors in verifying the legitimacy of a charity before donating.  First off, the charity’s website can provide a first step – most legitimate charities post their financial statements and annual reports on their website so that the public may view them.  Additionally, www.guidestar.org is a non-profit that provides detailed information about 501(c)(3) registered charities.  Further, legitimate charities should be completely transparent.  If an organization is not forthcoming about providing financial/audit statements, copies of their conflict of interest policy, or information about the board of directors and employees, there is cause for concern.


If you have questions about the authenticity of a veteran charity, or believe that you have been taken advantage of by a fraudulent charity, contact the experienced attorneys at Fausone Bohn, LLP.  We can provide you the sound legal advice that you need.  You can reach us at (248) 380-0000 or online at www.fb-firm.com. 

Breach of Honor by National Guard General

A recent report that a one-star general and former commander of the Michigan Air National Guard scammed nearly $200,000 represents a stain on the reputation of military officers in positions of power.

Brigadier General Richard G. Elliot, Michigan’s former Air adjutant general, is reported by the inspector general (IG) to have used his public office for private gain. Once a federal military technician, Elliot received a federal paycheck. However, in December 2005 he was appointed to serve as the Air adjutant general and commander of the Michigan Air National Guard, making him a full-time employee of the state.

In an effort to quality for retirement benefits, Elliot failed to terminate his federal position as required by law and instead continued to approve his own time and attendance records. As a result, he received more than $194,000, the IG found. The IG further found nearly $20,000 of unwarranted temporary duty travel money.

Perhaps more unfortunate, however, is that we are in 2014: almost ten years from when these abuses of power transpired. Not only did Brig. Gen. Elliot break the law and scam taxpayers, but the investigation to uncover it took nearly five years. Adding more fuel to the flame, Elliot’s boss, Maj. Gen. Thomas Cutler, then Michigan’s adjutant general, knew that Elliot was trying to reach his retirement date and helped Elliot remain on the books as a military technician.

This behavior is symptomatic of the “old boys club” present in the military, and the slow walking of the investigation allowed those implicated to retire without facing charges for what they had done. It should be noted, though, that this lapse of integrity by a few is not representative of the good men and women who serve our country, and our state.

Still, the case does represent a strand of military officers who have a, “boys will be boys” mentality. One way to rout out this thinking is to hasten investigations of such abuses of power and take the possibility of fraud more seriously. There are many who serve as appointed officials with great integrity, and many others who deserve high-level appointments. Cases like this provide an example of how the current system is not working.

Those officials who pull their weight and serve with integrity deserve better. More importantly, the people these officials serve deserve better – not only from those who abuse their power, but those who investigate the abuses.

To read more on the IG’s report and finding, read the Free Press article here: http://www.freep.com/apps/pbcs.dll/article?AID=/201401131511/NEWS06/301130142

Worry over Healthcare Leaves Elderly Vulnerable to Medicare Scam

Mark Mandell, Esq.           

Scammers are now targeting the elderly, a population who are increasingly concerned over their health care, especially in light of the Affordable Care Act’s ensuing changes. A Medicare-card related scam has left a trail of elderly victims across at least 15 states, including Michigan, West Virginia, Tennessee, Illinois, New Jersey and California.

Individuals fall prey to such a scam after receiving a phone call informing them of the need to verify information in order to receive a new Medicare card. Despite being warned to never give out personal information over the phone, when the caller on the other end of the line seems legitimate, it is hard to pick out a fraudulent call.

"Medicare is my lifeline,” says Bessie Bell, 72, just one of many senior citizens who has received a fraudulent call within the last year.

When fraudulent callers pick up on these worries and focus on current issues such as Medicare changes and the cost of prescription drugs, it is easy for concerned individuals to believe the newest pitch. Lately, Medicare beneficiaries are being told they must verify their account information by giving out their bank account or Social Security numbers in order to receive a new Medicare card. Others have been lured into believing in a new, “Preferred Medicare” card that would somehow be used alongside the current card.

The public is concerned with how to spot the scammers as they grow more convincing. Before giving out any personal information, individuals are warned to stop and think: would the government call each individual if changes were made to the Medicare program? Senior citizens have been advised to first call their doctor, the drugstore, or the AARP before taking any action. While a call may seem legitimate, it is important to remember that bank routing numbers are public information, and while a caller’s knowledge of such information may make the call seem more legitimate, it is better to be safe than sorry.

 

While this Medicare-card related scam may be one of the newer fraudulent schemes occurring across the nation, these scammers are not alone. Just last year, millions were called to verify their personal information in order to receive diabetic test strips; fraudulent online pharmacies lure in many each year by offering prescription drugs at prices too good to be true.

If you have questions about criminal matters, fraud or other legal issues, please contact Mark Mandell or Tariq Hafeez at 248.380.0000 or online at www.MichiganFraudLawyer.com.

To learn more and visit the original article, please visit: http://www.livingstondaily.com/article/20130210/OPINION01/302100310/Susan-Tompor-Scammers-target-seniors-fake-Medicare-card