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Alexander Lau

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Feb 11, 2015
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New Jersey-Based Telephone Fundraisers Banned from Soliciting Donations; Will Pay $18.8 Million for Violating FTC Order


The operators of a New Jersey-based telemarketing scheme will pay a record $18.8 million and leave the charitable donation business to settle charges that they violated a Federal Trade Commission order by 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 these 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 penalty should deter others from violating Commission orders and from deceiving consumers and harming legitimate charities. The case was filed on the FTC’s behalf by the U.S. Department of Justice.