Suit alleges deceptive fundraising

BOSTON, MASS. (WPRI) -- A Massachusetts-based charity has been sued by the state for deceptive fundraising practices.

Attorney General Martha Coakley announced the suit against Bay State Vietnam Veterans, located in Somerset, and its Rhode Island-based fundraising partner Dynamic Marketing Solutions, Inc., of Warren.

The state alleges that the companies solicited for donations for veterans but misled donors about how much of their donation was actually going to that purpose.  State officials say the company told donors that all their donations would go towards benefiting veterans, but only 15 percent of the money donated was actually used for that purpose.

Bay State Vietnam Veterans hired Dynamic Marketing Solutions to raise funds via phone, and the lawsuit also alleges that those fundraisers did not disclose that they were paid fundraisers, and in fact some of them represented themselves as veterans returning from Afghanistan.  State officials say 85 percent of the money donated was actually transferred to Dynamic Marketing Solutions as payment for their services.

Attorney General Coakley says the two companies' actions violated charitable solicitation and consumer protection laws, and the state has obtained a temporary restraining order prohibiting the two companies from transferring money or destroying financial records.  The state is also seeking $5000 in civil penalties for each deceptive act.

A hearing has been set for August 23rd.