Record Multi-Million Dollar Fine Vs. Telefundraisers

by admin

The operators of a New Jersey-based telemarketing organization will pay a record $18.8 million and leave the charitable donation business to settle charges that they violated a Federal Trade Commission (FTC) order by allegedly misleading consumers to believe that they were donating directly to legitimate charities serving police, firefighters, and veterans, when in fact only a small slice of the donations actually went to charities.

The civil penalty against Civic Development Group, LLC; CDG Management LLC; and owners Scott Pasch and David Keezer is the largest ever in an FTC consumer protection case. The case was filed on the FTC’s behalf by the U.S. Department of Justice.

The stipulated final orders are for settlement purposes only and do not constitute an admission by the defendants of a law violation. Stipulated orders have the full force of law when signed by the judge. Pasch and Keezer could not be reached for comment. Read More

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