New York prosecutors have slapped a fake not-for-profit with a $700,000 settlement for scamming people into thinking their donated clothes were benefiting the needy.
Thrift Land USA of Yonkers, Yew York sold the clothes it collected and lined its pockets with at least $10 million, according to New York Attorney General Eric Schneiderman
He says the company placed more than 1,300 clothing bins throughout New York and Connecticut and then paid $100 to $200 to non-profits to use their logo on the bins.
The company made a “huge profit,” while “duping members of the public into thinking that they are making a charitable donation, when in fact, they are enriching a for-profit corporation.
Schneiderman called the practice both deceptive and illegal.”
“When a for-profit company masquerades as a charity, my office will hold it and its owners accountable,” he added.
Thrift Land USA owner Carl Vella and his lawyer have refused to talk about the settlement.
The settlement paid by Thrift Land includes $50,000 in penalties and a payment of $650,000 to two non-profits, the New York Community Trust and the Westchester Community Foundation.
Money from the settlement will be used to ensure that the charitable actions of those who have clothes to the needs are fulfilled.