Telemarketing fraud of homeless Vietnam Veterans:
Here is the CNN report, which should enrage ALL Americans:
Supreme Court agrees to review
telemarketing case
Monday, November 4, 2002 Posted: 12:20 PM EST (1720 GMT)
WASHINGTON (AP) -- In a case with
implications for nearly every family
in America, the Supreme Court will
consider when charity
telemarketing calls go beyond
irritating -- to fraudulent.
The court said Monday it will decide
whether telemarketers can be pursued
for fraud for asking for cash for a
worthwhile charity, when much of the
money is being kept by the telemarketer.
The case stems from a fraud action that
Illinois brought against a company that
raised money for Vietnam
veterans.
The charity, VietNow, had an agreement
with Telemarketing Associates Inc. in
which the charity got 15 percent of the
money and the fund-raiser kept the rest
for salaries, expenses and profit.
VietNow had no problem with the
arrangement, and the state's complaint
was dismissed on free-speech grounds.
The Illinois Supreme Court "transformed
the First Amendment into a license for
unscrupulous fund-raisers to defraud the
public in the name of raising money for
charity," Illinois Attorney General James
Ryan told the nation's high court in a
filing.
State prosecutors want to prove that
telemarketers intentionally misled
donors.
Michael Ficaro, an attorney for the
telemarketing company, said to allow the
lawsuit "would place all charitable
fund-raisers at the mercy (of) the attorney
general's whims. Potentially any gross
fee can be called too high. Potentially any contractor arrangement can be called
unreasonable."
He said the company raised money for Vietnow, and educated the public about the
needs of veterans.
Ryan said people were told that their donations would be used for food and shelter
for hungry and homeless veterans. In reality, just 3 percent was used for that, he
said.
Charity solicitors bring in more than $200 billion a year and many are handled by
for-profit fund-raising companies, according to Ryan.
In a series of decisions in the 1980s, the Supreme Court repeatedly ruled against
states in disputes over charitable solicitations. In 1988, the court barred states from
placing strict regulations on professional, for-profit organizations that solicit
contributions for charities.
Other states that asked the Supreme Court to hear this case were Alabama, Alaska,
Delaware, Florida, Indiana, Kansas, Maine, Maryland, Michigan, Mississippi,
Missouri, Nevada, Ohio, South Dakota, Tennessee, Utah, West Virginia, and
Wyoming.
Florida Attorney General Robert Butterworth said states are getting more complaints
about solicitors, including some who falsely claim to be raising money for victims of
the terrorist attacks.
The case is People of the State of Illinois v. Telemarketing Associates, 01-1806.
Copyright 2002 The Associated Press. All rights reserved. This material may not be
published, broadcast, rewritten, or redistributed.
* JasonLeigh.org is a registered member of CNN's news posting service.
(Jason Leigh is an active member in good standing with The American Legion).
Social Security Disability Law (Sherry Abrams, attorney-at-law. She knows her stuff!).
Write to your State's Senator's Office click here
