Charity Fraud Prosecution Cases
1. United States v. Wells (2010)
Facts:
Wells created a fake charity claiming to help disaster victims, soliciting millions in donations via mail and online.
Legal Issues:
Charged with mail fraud, wire fraud, and conspiracy.
Used false advertising and forged documents to gain trust.
Outcome:
Wells was convicted and sentenced to over 10 years in prison.
Ordered to pay restitution to victims.
Significance:
Emphasized prosecution of fraudulent charities exploiting disaster sympathy.
2. United States v. Osteen (2016)
Facts:
Osteen ran a charity fundraising campaign for veterans but diverted over 75% of funds for personal expenses.
Legal Issues:
Charged with embezzlement and mail fraud.
Evidence included financial records showing misuse of funds.
Outcome:
Convicted after trial and sentenced to prison.
Ordered to repay misappropriated money.
Significance:
Highlighted misuse of legitimate charity structures for personal gain.
3. United States v. Mohamud (2014)
Facts:
Mohamud solicited donations for a fake cancer charity, mostly targeting vulnerable populations.
Legal Issues:
Charged with wire fraud and mail fraud.
Prosecutors showed deceptive fundraising materials and false claims.
Outcome:
Pleaded guilty and sentenced to several years.
Required to forfeit proceeds.
Significance:
Showed federal reach in cracking down on scams targeting the sick and vulnerable.
4. United States v. Glaser (2011)
Facts:
Glaser operated a charity claiming to support homeless veterans but used funds to buy luxury items.
Legal Issues:
Charged with mail fraud and money laundering.
Investigation included tracing donation flows.
Outcome:
Convicted and sentenced to prison.
Assets seized and victims compensated.
Significance:
Demonstrated use of financial forensic analysis in charity fraud cases.
5. United States v. Johnson (2018)
Facts:
Johnson founded a charity purportedly supporting education but funneled donations to unrelated businesses he controlled.
Legal Issues:
Charged with wire fraud and conspiracy.
Prosecutors uncovered shell companies and false reporting.
Outcome:
Convicted and sentenced to a lengthy prison term.
Required to make restitution.
Significance:
Highlighted complex fraud involving multiple entities and false reporting.
6. United States v. Harper (2015)
Facts:
Harper was involved in a multi-state charity fraud scheme raising funds for children’s hospitals but diverted funds for personal use.
Legal Issues:
Charged with conspiracy, wire fraud, and mail fraud.
Coordinated large-scale deceptive campaigns.
Outcome:
Convicted and sentenced to prison.
Court ordered restitution to charities and donors.
Significance:
Showed how coordinated schemes can defraud multiple donors and charities.
Key Legal Points in Charity Fraud Prosecutions
| Element | Explanation |
|---|---|
| Mail and Wire Fraud | Main tools to prosecute fraudulent fundraising via communication. |
| Embezzlement | When charity officials misuse funds for personal use. |
| Conspiracy | Often charged when multiple people coordinate fraud. |
| Restitution & Forfeiture | Courts order criminals to repay victims and seize fraud proceeds. |
| Financial Forensics | Essential for tracing flow of donated funds. |
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