Cuomo Audit Reveals Variety of Misleading Practices; Subpoenas Issued to 16 Charities, Fundraisers, and Individuals Involved in the Car Donation Industry
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.