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News : Arizona Attorney General Shuts Down Telemarketing Operation
Phoenix, AZ, USA, Nov 3, 2015 -- A fake charity claiming to raise money for veterans is now out of business, according to the Arizona Attorney General’s Office.
The businesses sold household products at a markup of 1,800 percent, claiming the excess money was going to support disabled or disadvantaged veterans, according to Attorney General Mark Brnovich. In fact, none of the proceeds were used for charitable purposes, Brnovich said.
The defendants specifically targeted seniors suffering from Alzheimer’s disease or other memory-related disorders.
Three Phoenix telemarketing companies owned by Robert Foster - Happy Hands, Standing Tree and Action Point - have been dissolved under a stipulated consent judgment. Foster is also prohibited from owning, operating, or managing an outbound telemarketing call center for two years.
Telemarketers working for Foster falsely claimed to be veterans who were benefiting from the sales of the household items, according to Brnovich. A box of 30 garbage bags sold for $90.
The defendants will also pay more than $100,000 in restitution for victims who filed complaints with the Attorney General’s Office.
Posted by Veronica Silva Cusi, news correspondent
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More Editorial From Arizona Attorney General’s Office
About Arizona Attorney General’s Office:
The Arizona Attorney General is the chief legal officer of the state of Arizona, in the United States. It is an independent, constitutionally mandated office, elected by the people of the state to a four-year term.
Published: Wednesday, November 4, 2015