Charity Fraud Scams Explained by a New York City Defense Attorney
Charities exist to provide for the public good. Under the Internal Revenue Code section 501(c)(3), charitable organizations may be exempt from federal income taxes due to the important service these organizations provide. Donations to qualifying non-profit or charitable organizations may also be considered tax deductible.
While charities serve a very important societal purpose, there is also a real potential for fraud in connection with these organizations. If you are accused of any involvement with a charity fraud scheme, you need to understand the crimes you are charged with, develop a strategic approach to responding to charges, and fight to avoid conviction.
A New York City defense lawyer at Bukh Law Firm, PLLC can provide you with aggressive and knowledgeable legal representation. Our legal team has defended individuals and charitable organizations accused of criminal activities and we provide advice and advocacy for all legal troubles you are facing. Call now to learn more.
Types of Charities Fraud
There are many different kinds of charity scams that exist, which are designed to mislead donors or to mislead government authorities. Examples of charity fraud scams include:
- Creating a fake charity for purposes of obtaining donations under false pretenses.
- Embezzling or taking money from a charitable organization for anything other than the charitable purpose the organization was created to fulfill.
- Making false statements on tax forms to qualify for non-profit or charitable status.
Charities fraud scams are often perpetrated via the Internet, although some charities scams are telemarketing scams that involve calling people to solicit donations for fake charities or false causes. Any time misleading statements or false statements about charitable purposes are used to unjustly enrich the scammer at the expense of victims, the fraud crime may be considered a charity scam.
The Federal Trade Commission, the Consumer Financial Protection Bureau (CFPB), the Federal Bureau of Investigation (FBI), the Department of Justice, the Internal Revenue Service (IRS), and the New York Attorney General may all become involved in investigating reported scams related to charities. Arkady Bukh has a long track record of representing clients accused of serious federal and state crimes in NYC TOP RATED ON: SUPER LAWYERS, AVVO, NATIONAL TRIAL LAWYERS
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Arkady Bukh has a long track record of representing clients accused of serious federal and state crimes in NYC
TOP RATED ON: SUPER LAWYERS, AVVO, NATIONAL TRIAL LAWYERS
Penalties for Charity Scams
Penalties for charity scams vary depending upon the methods used to improperly obtain funds, whether money was laundered or false statements were made on tax returns, and the amount of money that was embezzled or stolen. Defendants accused of involvement with charity scams could be charged with Internet crimes, mail fraud, wire fraud, embezzlement, tax fraud, and theft. Many of these crimes carry lengthy prison terms.
It is also likely that a defendant convicted of a charity scam could be forced to make restitution or to pay back money obtained improperly through the scam. Defendants can find their accounts frozen, and can face civil or criminal asset forfeiture as a result of accusations that they improperly obtained funds by pretending to be a charitable organization or by misappropriating assets from a charity.
Bukh Law Firm, PLLC understands that cases involving charitable fraud are complicated, because there are often many different financial transactions involved that have taken place over a period of years. We understand tax laws, criminal laws, and civil laws related to the operation of charitable organizations and we are very familiar with the regulations related to criminal charges for alleged fraud offenses. We can help you to evaluate the case against you, investigate possible defenses, or make informed choices about whether to negotiate and acceptable a favorable plea agreement.
To learn more and to get personalized one-on-one legal services from a top New York defense attorney, call Bukh Law Firm, PLLC today.