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Source: The State AG Report
State: District of Columbia, Maryland, Virginia
Industry: Charities and Nonprofits
Area of Law: Consumer Protection
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- D.C. AG Brian Schwalb, Maryland AG Anthony Brown, and former Virginia AG Jason Miyares settled with two fraudulent youth club nonprofits and their founder to resolve allegations that they misrepresented the nature of what donations would be used for, in violation of consumer protection laws and laws governing nonprofits in D.C., Maryland, and Virginia.
- According to the settlements, Maryland Youth Club of America, Inc. and Virginia Youth Club of America, Inc. (collectively, "Youth Clubs") allegedly recruited school-aged children from low-income neighborhoods to sell candy for donations supposedly in support of scholarships and enrichment activities for at-risk youth, when the Youth Clubs' founder actually used donations for his personal gain.
- Under the terms of the settlements, the Youth Clubs will permanently shut down, and their founder, officers, and directors are banned from doing business or soliciting charitable donations in D.C., Maryland, and Virginia, among other relief.
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