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- From: "nigel allen" <nigel.allen@canrem.com>
- Subject: "drug education" scam
- Message-ID: <1992Nov5.4911.4546@dosgate>
- Reply-To: "nigel allen" <nigel.allen@canrem.com>
- Organization: Canada Remote Systems
- Distribution: misc
- Date: 5 Nov 92 22:02:22 EST
- Lines: 60
-
- Here is a press release from the Attorney General of Virginia.
-
- Terry Applauds Ruling in Case of Deceptive Funds Solicitation
- To: City Desk
- Contact: David A. Parsons of the Office of the Attorney General of
- Virginia, 804-786-3518
-
- RICHMOND, Va., Nov. 4 -- Attorney General Mary Sue Terry
- today applauded a Henrico County Circuit Court's ruling that a
- Florida company used deceptive tactics when it solicited money in
- Virginia for children to visit a traveling "museum" to learn about
- the dangers of drugs.
- In his ruling, Circuit Judge L.A. Harris ordered the company --
- Community Benefit Services Inc. (CBS) -- to pay $20,000 to Virginia
- for distribution to legitimate charities.
- The attorney general filed suit against CBS and its owners on May
- 8, 1991. CBS is a for-profit corporation that owned a
- tractor-trailer that housed an exhibit to discourage drug abuse.
- The trailer traveled around the country and made half-day stops in
- parking lots where the public could walk through the exhibit.
- It visited about a half-dozen locations across the state, including
- Henrico, in 1990. A two-day trial was held in September 1992.
- "Obviously, the public is very interested in programs that educate
- children about drugs," Terry said. "These people took advantage of
- that in order to try and make a fast buck."
- The attorney general's suit alleged that CBS telephoned Virginians
- from its Florida office and led them to believe that it was a local
- Virginia charity. It also used local, Virginia return addresses that
- it rented from private mail box services. CBS asked donors to send
- money so it could invite deserving local children to tour the
- trailer, which it called the Children's Traveling Museum.
- The suit alleged that many Virginians assumed that CBS was a
- not-for-profit organization and that their payments were tax
- deductible. CBS did not disclose during much of its operation in
- Virginia that it was, in fact, a for-profit corporation and that
- donations to it were not tax deductible.
- The suit also alleged that CBS did not effectively distribute
- tickets to local children. In the Richmond area, only one school
- received any tickets, and its tickets arrived after the school year
- ended. Other tickets were sent to a Roanoke for-profit company,
- which left them on its retail customer counter to be ignored or taken
- by anyone, regardless of age or need.
- In its ruling, the court held that: "Defendants did employ in the
- solicitation or collection of contributions devices, schemes, or
- artifices which allowed them to obtain monetary contributions through
- material misrepresentations and misleading information."
- The court ruled that CBS and its owners should pay back $20,000,
- which is the majority of the company's take from Virginia. When
- collected, the state will distribute the money to legitimate
- charities under the supervision of the court.
- The court also ruled that, in any future solicitations, CBS must
- first register with the Virginia Division of Consumer Affairs,
- disclose its location and that of its telephone solicitors, and
- disclose that it is a for-profit business.
- The case was investigated by the Virginia Division of Consumer
- Affairs.
- -30-
- --
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