Two charities that promised to help homeless veterans but instead misused $13 million have been shut down by Virginia Attorney General Mark Herring.
“It is despicable that there are organizations out there that will deceive kind-hearted Virginians who just want to help homeless veterans in our communities,” Herring said in a press release. “My office will vigorously go after these bad actors who take advantage of the kindness of Virginians to benefit themselves.”
As part of the settlement agreement with the state, retired Army Maj. Brian Arthur Hampton, who founded and operated The Circle of Friends for American Veterans and the Center for American Homeless Veterans, has been permanently banned from soliciting donations and from serving in any financial role for other non-profit organizations.
In the release, Herring explained that Hampton raised funds across the country through telemarketers which were ostensibly to provide education and assistance to homeless vets. Instead, a majority actually went towards paying telemarketers as well as the salaries of Hampton and his staff, the release states.
“Appallingly, the cost of the organization’s telemarketing campaigns with the problematic solicitation scripts was misleadingly characterized in the charities’ financial disclosures as program expenses to inflate those numbers and lead prospective donors to believe that the organization was providing more support to homeless veterans than it actually was,” the release continues. “Moreover, the organization allegedly also had a host of troubling internal processes and business practices with no real board oversight.”
Hampton was also ordered to split $100,000 to three charities which “provide real support” to homeless veterans – Virginia Supportive Housing, the Bob Woodruff Family Foundation and Homes for our Troops. If he does not comply with the order, Hampton will have to pay more than $3.7 million for charities that help homeless veterans. The settlement is in the form of a consent judgment, which has been filed for approval with the Falls Church Circuit Court.
The New York Attorney General’s office, which has begun its own investigation into Hampton’s organizations has reached a “substantially similar” agreement with Hampton.
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