Outreach Calling, Inc.
Also known as: Outsource 3000, Inc., Production Consulting Corp..
The FTC and four states alleged that this fundraising operation was the primary fundraiser for sham charities, keeping as much as 90 percent of what it raised, while the charities sometimes spent less than two percent on their stated missions.
Resolved. Refunded, settled, ceased operating, or the claim did not hold up. Kept for the record.
Identity
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- Registrations
- FTC and the States of New York, Virginia, Minnesota and New Jersey v. Outreach Calling, Inc., et al. (FTC case 182-3058, S.D.N.Y., 2020)
- Jurisdictions
- United States (federal) · New York · Virginia · Minnesota · New Jersey
Ninety percent to the fundraiser
A group of companies controlled by Mark Gelvan, working with associates Thomas Berkenbush, William English and Damian Muziani, served as the primary fundraisers for a number of sham charities that had themselves been the subject of law enforcement actions.
Those charities told donors their money would help homeless veterans, retired and disabled law enforcement officers, breast cancer survivors and others in need. In fact they spent almost none of it on those activities.
The complaint alleges that as much as 90 percent of the money raised went to the defendants as payment for fundraising services. Of the little the charities did receive, sometimes less than two percent went to their stated missions.
What the fundraisers actually did
They solicited the donations, wrote the fundraising materials and provided other key support to the sham charities. The calls misrepresented how donations would be used, and in many instances violated consumers’ do-not-call requests.
The defendants had worked together for as long as 30 years and had been subject to numerous law enforcement actions dating back to 1996.
The settlements
All defendants are permanently barred from any charity fundraising, and from deceiving consumers in any other fundraising effort including for political action committees. When asking for money they must state clearly that donations are not charitable and not tax deductible.
Gelvan and the corporate defendants face a judgment of $56,023,481, partially suspended for inability to pay. The companies surrender $45,386; Gelvan surrenders $800,000 plus the net proceeds of two New Jersey properties. Separately, Muziani faces $484,172 and surrenders $12,369; Berkenbush faces $1,132,155 and surrenders $5,000; English faces $873,293, surrenders $30,000, and is barred from fundraising of any kind.
The surrendered funds go to the State of New York, which will pass them to legitimate charities doing the work the sham charities had promised.
What is not established
Stipulated final orders resolve the allegations without any admission or finding of wrongdoing.
Sources
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- Enforcement action September 16, 2020
- Enforcement action October 26, 2020
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First recorded September 16, 2020 · Last updated October 26, 2020