State Sues Charity, Seeks Ban on Future Activities;
Donation Canisters Yielded Little or No Money for Charity
NEWARK – The Attorney General’s Office and Division of Consumer Affairs have filed suit against a Union Township charity and its principal for allegedly misleading consumers about how their donations would be used, Attorney General Zulima V. Farber and Consumer Affairs Director Kimberly Ricketts announced.
The complaint, filed in State Superior Court in Union County, seeks to assess civil monetary penalties and to enjoin National Animal Welfare Foundation Inc. (NAWF) and its principal, Patrick G. Jemas, from any future charitable activities in New Jersey. The State is asking the Court to permanently bar NAWF and Jemas from registering and operating as a charitable organization, independent paid fund-raiser or solicitor in New Jersey.
"This organization and its principal took advantage of the generosity of our citizens and broke the law," said Attorney General Farber. "We will not tolerate individuals who cheat New Jerseyans out of their hard-earned money. It is all the more egregious when it involves charitable giving, because it has the potential to hinder other charities in the state, the vast majority of which are legitimate and comply with our charities laws."
Between fiscal years 2002 and 2005, NAWF collected $70,795 in canister donations but spent $75,891 on expenses that included fund-raising, payroll, meals, automobiles, printing and other undefined areas. In only one of these five fiscal years did the reported canister donations exceed the organization’s reported expenses.
"Everyone who made a donation thinking they were helping animals in need should be appalled by Jemas’ alleged actions," said Consumer Affairs Director Ricketts. "The people’s trust has been violated and we are taking strong action to provide a fair environment for donors as well as the charitable organizations and paid fund-raisers who follow our laws and regulations."
The State’s Complaint alleges that NAWF and Jemas failed to comply with the Charitable Registration and Investigation Act and related regulations by:
• Failing to register as independent fund-raisers;
• Making untruthful statements and misrepresentations;
• Failing to pay late registration fees;
• Failing to file fund-raising contracts;
• Failing to file a bond and a financial report;
• Contracting with an unregistered independent paid-fund raiser;
• Failing to exercise control over fund-raising activities;
• Failing to include a required statement on canisters;
• Failing to maintain complete and accurate records;
• Failing to comply with the Attorney General’s investigation; and
• Failing to register as a Solicitor.
Jemas previously was barred from employment as a paid fund-raiser for another charity, Associated Humane Societies Inc. (AHS), following the State’s investigation into AHS and its fund-raising activities. In June 2005, AHS, a non-profit animal shelter operator, agreed to pay Consumer Affairs $138,057 and implement more than two dozen reforms to settle allegations that AHS violated the State’s Consumer Fraud Act and Charitable Registration and Investigation Act.
In addition to fund raising on NAWF’s behalf, NAWF and Jemas allegedly operated as a paid fund-raiser for other charitable organizations without being registered to do so. NAWF and Jemas also are alleged to have contracted with an unregistered independent paid fund-raiser but failed to direct, manage and control that fund-raiser’s activities to ensure canister donations were accounted for and provided to NAWF.
Deputy Attorney General Brian M. Brennan is representing the State in this matter.
The public can obtain information about charitable organizations and paid fund-raisers who are registered to operate in New Jersey by contacting Consumer Affairs’ Charitable Registration Unit at 973-504-6215 or by going to the unit’s web site,
www.njconsumeraffairs.gov/ocp.htm#charity.
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