Misleading Practices By Car Donation Charities? Cuomo Says Yes

Although he is on track to be New York’s next Governor, the state’s Attorney General, Andrew Cuomo, is still taking his role as N.Y.’s AG seriously. Today, he announced an industry-wide investigation into car donation charities after he said he found fraudulent practices that deceived donors and diverted funds from those in need. Cuomo’s office filed a lawsuit seeking to shut down one charity for allegedly misusing money meant for the homeless, and subpoenaed 16 charities, fundraisers, and individuals. 

Cuomo’s 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, Cuomo says, less than $7,900 – 1.8% –  was used for charitable purposes.
 
The lawsuit charges that: Cascone and FTH intentionally made false representations about FTH to trick people into donating their vehicles. For example, the charity’s own Web site included false claims about the number of meals for the hungry that FTH had funded. The Web site, www.feedthehungryinc.org, was taken down when FTH learned of the Attorney General’s investigation.
 
The lawsuit also charges that Cascone failed to provide even the most basic corporate and financial oversight of charitable assets.
 
The lawsuit seeks to:
·         Freeze FTH’s assets and permanently bar any further charitable solicitations by FTH;
·         Obtain a full accounting of FTH’s and Cascone’s current and former assets and hold Cascone liable for restitution and damages;
·         Prevent Cascone from serving as an officer or director of any not-for-profit in the future;
·         Permanently dissolve FTH and dedicate any remaining assets to charitable uses that are actually consistent with the stated mission of FTH.
 
In addition, Cuomo has sent subpoenas to 16 charities, fundraisers, and individuals involved in the charitable car donation industry. The subpoenas seek materials relating to the revenues that charities and for-profit fundraisers have collected through car donation programs, and how those revenues were used by the charities. The subpoenas also seek evidence to support the representations made in solicitations to potential vehicle donors.
 
The charities, fundraisers, and individuals that have received subpoenas are: Bless the Kids, Inc.; Breast Cancer Society; Cars that Help, Inc.; Louis Cardillo; Children in Crises; Children’s Cancer Fund of America; Children’s Literacy Fund; Feed the Hungry, Inc.; Arthur Glass; Heritage for the Blind; Hope for the Disabled Kids, Inc.; J.O.Y. for our Youth, Inc. d/b/a Kars 4 Kids; Lechaim for Life; Neo Presearch Energy Foundation, Inc.; Tree of Life; and We Buy Cars, Inc.