New York Paralegal Blog

When the leaders of a charity like VDARE use its money to benefit themselves or their families, it's a serious violation of the public trust and the law. This practice is known as self-dealing. What is Self-Dealing? Self-dealing occurs when a person in a position of authority at a nonprofit organization—like a director, officer, or trustee—uses the charity's assets or influence for their own personal gain. In the case of VDARE, New York Attorney General Letitia James has alleged that its leaders, Peter Brimelow and his wife, Lydia Brimelow, used charitable funds for their own benefit. This can include: Selling property to the charity at an inflated price. Renting property to the charity at a rate that's higher than the market value. Giving themselves excessive salaries or "consulting fees." Transferring the charity's assets to companies they own. The core issue is that the individual is putting their personal financial interests ahead of the charit...

NEW YORK, NY (June 15, 2010) - Attorney General Andrew Cuomo today announced an industry-wide investigation into car donation charities after a review found fraudulent practices that deceived donors and diverted funds from those in need. As a result of the investigation, the Attorney General’s office filed a lawsuit seeking to shut down one charity for misusing money meant for the homeless, and subpoenaed 16 charities, fundraisers, and individuals. The lawsuit charges that Nicholas Cascone, Jr., the director of “Feed the Hungry, Inc.” (“FTH”), solicited vehicle donations that were supposed to fund humanitarian causes and then kept the proceeds to enrich himself. Of the more than $430,000 that FTH received in donations between 2002 and 2009, the investigation found that less than $7,900 - 1.8% - was used for charitable purposes.