SHAM CHARITIES SCAMMED CONSUMERS OUT OF MILLIONS - English

October 2020

 SHAM CHARITIES SCAMMED
CONSUMERS OUT OF MILLIONS
A sprawling fundraising operation that allegedly scammed consumers out of millions of dollars will be
permanently banned from charitable fundraising along with its owner and others involved in its operation
as a result of a lawsuit brought by the Federal Trade Commission and Attorneys General of several states.

The operation is made up of multiple companies all under the control of owner Mark Gelvan, along with
his associates Thomas Berkenbush, William English, and Damian Muziani. The complaint filed by the FTC
and the states alleges that the defendants served as the primary fundraisers for a number of sham charities
that were the subject of numerous law enforcement actions.

The complaint alleges that the sham charities claimed to use consumers’ donations to help homeless veterans,
retired and disabled law enforcement officers, breast cancer survivors, and others in need. In fact, these
organizations spent almost none of the donations on the promised activities.

The complaint alleges that as much as 90 percent of the money raised by
                                        the defendants for these sham charities went to the defendants themselves
                                        as payment for their fundraising services. What little money the charities
                                        did receive was rarely spent on any of their supposedly charitable missions,
                                        sometimes less than two percent.

                                        According to the complaint, the defendants orchestrated the sham charities’
                                        fundraising operations by soliciting donations, writing fundraising materials,
                                        and providing other key support to the sham charities. Defendants placed
                                        calls misrepresenting how donations would be used, and in many instances,
                                        the calls violated consumers’ do-not-call requests.

Under proposed settlements, all of the defendants will be permanently prohibited from participating in any charity
fundraising, and from deceiving consumers in any other fundraising effort, including for political action committees
(PACs). The defendants will be required to clearly inform consumers at the time they ask for money that any
donations are not charitable and not eligible for tax deductions. In addition, the defendants will be subject to
significant monetary judgments and required to surrender assets.

The Florida Department of Agriculture and Consumer Services regulates the
solicitation of contributions in Florida. Charitable organizations, sponsors,
professional solicitors, and professional fundraising consultants are required
to register with the department and are required to provide documentation
to show how contributions are used. Visit www.FloridaConsumerHelp.com
and click on Charities for more information and tools on how to safely make
charitable contributions in Florida.

$147 MILLION IN SECOND
  GROUP OF WESTERN
    UNION REFUNDS
                    by Bridget Small, Division of Consumer & Business Education

Refund checks worth about $147 million are going out to almost
33,000 people who sent money to scammers through Western
Union wire transfers. The $147 million is a portion of the money
Western Union paid when it reached settlements with the
FTC and Department of Justice, and agreed to create a strong
anti-fraud program. Western Union also admitted to criminal
violations in its settlement with the Department of Justice.

These refunds are going to people in the US and other countries, including many older adults who lost money to
grandparent, lottery, sweepstakes, or romance scams. They will get compensation for 100 percent of their verified
losses. This is the second round of payments related to the Western Union settlement. In March 2020, refund
checks worth about $153 million went out to more than 109,000 people.

The US Department of Justice (DOJ) expects to approve more refunds in the coming months. DOJ also plans
to provide a way for people to apply for refunds for the first time, and to provide additional documentation to
support claims that haven’t been approved yet. When there is information about how to apply for the first time or
provide additional documentation, DOJ will post it on the Western Union Remission site.

The refund checks will come from “United States v. The Western Union Company.” If you’re in the US, you have
to cash or deposit the check within 90 days. If you got a check but don’t agree with the amount, you can cash the
check and contact DOJ’s administrator, Gilardi & Co. at 844-319-2124 and WesternUnionRemission.com. Learn
more at Western Union Refunds.

“WAITING PACKAGE”
 PHISHING SCAM
The Federal Trade Commission has reported complaints from people who
have received text messages saying that there is a package waiting for them
and asking them to click a link to learn more. Some cases have targeted
college students with a message that the package has been waiting since
last spring when many students had to leave school suddenly due to the
pandemic.

Scammers commonly use unsolicited emails and texts to commit fraud. They can easily copy the logo or even
the entire website of a legitimate organization in an attempt to lure you into providing personal information or
downloading malicious software. This is called phishing.

Phishing scams typically occur when scammers falsify their identity, usually by claiming to represent a legitimate
corporation or government agency. They try to entice you into revealing your personal information such as your
bank account numbers, Social Security number, passwords or other sensitive data.

No matter what the message is, if an unexpected text or email is requesting that you select a link to “learn more”
or to “update” or “confirm” your account information, be skeptical and contact the organization directly to verify
the legitimacy of the request. Don’t use a provided link or any contact information included in the message.
Selecting a link contained in an unsolicited email can install malware and spyware onto your computer and can
allow scammers to gain access to files stored on your computer, as well as to personal information and account
passwords.

Here are some basic recommendations to help protect you from getting hooked by a phishing scam:
 • Don’t open the link. If you receive an email or pop-up message requesting sensitive information, do not reply or click
   on any links. Legitimate companies do not ask for personal or financial information via email.

 • Check the spelling and grammar. Phishing emails may look legitimate at first glance but will often include misspellings
   of common business names or grammatical errors. This could be a warning sign that the message is a fraud.

 • Be aware. Review credit card and bank account statements as soon as you receive them to determine whether there are
   any unauthorized charges.

 • Be protected. Use anti-virus software and keep it up to date. Look for anti-virus software that recognizes current viruses
   as well as older ones, that can effectively reverse the damage, and that updates automatically.

If you think you have been the victim of a phishing scam, report it to the Florida Department of Agriculture and
Consumer Services at 1-800-HELP-FLA (435-7352) or 1-800-FL-AYUDA (352-9832) for Spanish speakers.

FREE TRIALS
  CAN BE COSTLY
    by Lisa Lake, Consumer Education Specialist, FTC

Getting free stuff is cool…until it isn’t free. It is decidedly uncool
when, after luring you in with “free trials” for products you might like,
a company hits you with surprise charges during the supposedly “free”
trial period.

In a complaint filed in federal court, the FTC alleges that NutraClick, which marketed dietary supplements and
beauty products through paid subscription programs, broke the law by not making it clear exactly when its free
trials ended and the billing began. NutraClick offered samples of its products as part of an 18- or 34-day free trial
period to get people to enroll in its subscription programs. But the trial periods included negative option terms,
in which sellers can automatically charge people’s cards or bank accounts if they don’t cancel their subscriptions.

According to the FTC, NutraClick broke telemarketing rules, violated online sales laws, and ignored a federal
court order, when it failed to properly tell people they had to cancel at least one day before the end of the trial
to avoid charges for the monthly subscription. People lost more than a million dollars because of NutraClick’s
conduct, the FTC says.

Considering free offers? Keep this in mind:
 • Do some research. Search the product and company name online with words like “review,” “complaint,” or “scam” to see
   what others are saying.

 • Find the terms and conditions for the offer. If you can’t find them
   or can’t understand exactly what you’re agreeing to and when you’ll
   be charged — including what you’ll be charged for and the date by
   which you have to act to avoid a charge – don’t sign up.

 • Monitor your credit and debit card statements. If you’re charged
   for something you didn’t order, dispute those charges as soon as
   you spot them.

 • Read your credit and debit account statements. That way, you’ll
   know right away if you’re being charged for something you didn’t
   order.

And if a company didn’t make it clear when they’ll bill you after your free trial, tell the FTC.

CELEBRATE GLOBAL
   HANDWASHING DAY
October 15 is Global Handwashing Day, a day to increase our
awareness of proper handwashing techniques and to understand
the importance of handwashing to prevent illness. Did you know
you can help prevent foodborne illness with the same practices
you use to help prevent COVID-19?

Proper handwashing is critical to prevent illness and it only takes
20 seconds! Wash your hands by following five easy steps—wet,
lather, scrub, rinse, and dry.

1. Wet your hands with clean, running water (and then turn off the
   tap to save water).

2. Lather your hands completely by rubbing them together with the
   soap, including the backs of your hands, between your fingers, and
   under your nails.

3. Scrub your hands for at least 20 seconds. Need a timer?
   Hum the “Happy Birthday” song from beginning to end twice.

4. Rinse your hands well under clean, running water.

5. Dry your hands using a clean towel or air dry them.

To celebrate Global Handwashing Day and help prevent
foodborne illness, learn more about handwashing and view and
share fun handwashing resources by accessing the Division of
Food Safety’s new Consumer Resources and Outreach website
here. This website offers a fun handwashing coloring page,
handwashing science experiment and guidance video, and other
handwashing materials.

You may also access the Florida Department of Agriculture and
Consumer Services’ COVID-19 Information website here and
learn more about Global Handwashing Day from the Centers for
Disease Control website here.

CONSUMER PROTECTION
     SPEAKER REQUEST
 Do you need a guest speaker for your organization’s next virtual event or meeting?

  We have the latest information on scams and fraudulent schemes that bilk people
 out of millions of dollars annually. At your next virtual event or meeting, let one of
our consumer protection representatives join in and educate your group on the latest
   consumer issues. Maybe we can’t be there in person, but we’re still here for you.

            Call us at 1-800-HELP-FLA or visit www.FloridaConsumerHelp.com
                      for more information on how to request a speaker!

The Division of Food Safety monitors food from the point          The Consumer Product Safety Commission provides
of manufacturing and distribution through wholesale and            consumer product recall information as part of the
retail sales to ensure the public of safe, wholesome and        agency’s mission to protect consumers and families from
           properly represented food products.                                    hazardous products.
   CLICK THE ICON ABOVE TO SEE THE LATEST RECALLS,                 CLICK THE ICON ABOVE TO SEE THE LATEST RECALLS,
       MARKET WITHDRAWALS, & SAFETY ALERTS.                            MARKET WITHDRAWALS, & SAFETY ALERTS.
The Florida Department of Agriculture and Consumer Services is the state’s clearinghouse for consumer complaints,
protection and information. Consumers who would like information about filing a complaint against a business or
who believe fraud has taken place can visit us online at FloridaConsumerHelp.com or contact the department’s
consumer protection and information hotline by calling 1-800-HELP-FLA (435-7352) or 1-800-FL-AYUDA (352-9832)
for Spanish speakers.

Follow us on Twitter -- @FDACS and @NikkiFriedFL                                     FDACS-P-00030 Rev. 10/2020