Settlement Reached in 'Misleading' NY Veterans Charity Case

Photo Credit: ReutersA direct-mail fundraising company that sent solicitations on behalf of a disabled veterans’ charity but took in most of the money raised will pay $9.7 million in damages and the charity will re-organize its board and reform its practices as part of a $24.6 million settlement, the state attorney general’s office said.

Attorney General Eric Schneiderman was expected to discuss the agreement among his office, the Disabled Veterans National Foundation charity, the Quadriga Art direct-mail company and another company, Convergence Direct Marketing, on Tuesday.

Besides the damages, the settlement calls for Quadriga to forgive $13.8 million still owed to it by the charity and pay $800,000 to the state for costs and fees. Convergence, which Schneiderman’s office said also played a role in the fundraising, will pay $300,000 in damages. The $10 million in damages from the two direct-mail vendors is slated to go to efforts to help disabled veterans including spinal cord research.