Today, the Washington State Attorney General’s Office
announced a lawsuit against Ian Richard Hosang who created six nonprofit entities
in Washington: American Cancer Society of Seattle, American Cancer Society of
Washington, American Red Cross of Seattle, American Red Cross of Washington,
United Way of Seattle and United Way of Washington.
None of the nonprofits are related to their namesakes. The
Attorney General’s Office alleges that neither the nonprofits nor Hosang or his
associates reside in the state of Washington. Each nonprofit used an address at
a UPS Store in Seattle. Hosang instructed the store to forward any mail to a
P.O. Box in Brooklyn, New York. The nonprofits did not perform any activities
listed in their mission statements not did they give any money or other
assistance to the real organizations claimed to be beneficiaries.
Hosang is a former stockbroker who has ties to the mafia. He
spent 12 years in federal prison after pleading guilty to money laundering and
conspiracy charges because of his ties to the Gambino crime family in New York.
While the Attorney General’s Office did not find that the
organizations solicited donations, it did find at least one check made out to The
American Cancer Society of Washington. The Office is concerned that there may
be more “contributions. The Office requests that if you donated to any of the
above nonprofits, that you contact it at https://www.atg.wa.gov/file-complaint.
This lawsuit highlights the problem of charity scams. The names
of these fake nonprofits show how a scammer can manipulate an organization’s
name to sound like a legitimate charity. If you want to give to a charity, consider
the following:
·
Ask for detailed information about the
organization, including an address, phone number and name
·
Ask the organization what percentage of
donations benefit the actual cause
·
Check if the charity is registered with the
Washington Secretary of State: https://www.sos.wa.gov/charities/
Washington State Attorney General’s Office:
Federal Trade Commission:
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