Posts Tagged ‘fraud’

Car Donation Charity Founder Admits to Fraud

Monday, August 16th, 2010

After pocketing over $2 million from car donations, Shoba Bakhsh, founder of “Hope for the Disabled Kids, Inc.,” has plead guilty on the charges placed against her. This is in line with the State Attorney General’s efforts to crack down on fraudulent car donation charities.

Bakhsh was charged with lying to donors and misusing the funds for her own family and uses. Since the lawsuit, her company has been shut down. In the time it was operating, it accepted thousands of cars generating over 2 million dollars. The company operated eight years, and not a penny was spent on the charitable organizations it claimed to represent for the last two. Although, because Bakhsh destroyed all the records from the previous years, there is no telling if anything ever went to the charities.

As Attorney General Cuomo stated, “This individual manipulated donors and exploited children with serious medical needs in order to enrich herself and her family. As a result of her actions, millions of dollars that should have gone to help disabled children were instead spent on department store bills and real estate. As our investigation continues, my office encourages New Yorkers to be generous and informed donors.”

When you donate a car to charity, do yourself a favor and do the research. You want to make sure your money goes to good use, and the one sure way to do that is to pick a great company to complete the transaction for you.

State Attorney General Cracks Down on Fraudulent Car Donation Charities

Thursday, July 15th, 2010

New York State Attorney General Andrew Cuomo recently announced on Tuesday June 22nd that he has subpoenaed 16 different car donation charities and fundraisers that could be scams. This is all part of an ongoing investigation that Cuomo hopes will halt fraudulent activity that takes advantage of trusting citizens.

One organization, Feed the Hungry (FTH) is charged with raising $430,000 with car donations between 2002 and 2009 but only donating 1.8 percent of that towards its said cause of feeding homeless New Yorkers. The rest of the money, was allegedly spent on personal purchases by the director of the charity, Nicholas Cascone Jr.

When you decide to donate a car, it cannot be expressed enough that you need to carefully consider your options. While you might believe you are making a charitable contribution, you might just be taken for a ride instead.

“We remain concerned that similar practices may prevail in other organizations and will diligently work to root out any other sham charities. As we continue working to clean up this industry, we encourage generous New Yorkers to stay informed and to keep donating to worthy charities,” said Cuomo.

Other charities that are under the microscope include Kars 4 Kids, Bless the Kids and Lechaim for Life. While you can still receive your car donation tax deduction if you were to donate to such charities, you might not be donating to a worthy cause and these companies are still taking advantage of their nonprofit status.