A broad coalition of charities and trade groups have submitted briefs to the U.S. Supreme Court in a case that will determine whether telemarketers can be pursued for fraud when they keep a large portion of they money they solicit for charities.
The case stems from a fraud action filed more than a decade ago by the state of Illinois against Telemarketing Associates Inc. According to that complaint, the firm misrepresented how contributions it solicited on behalf VietNow, a charity for Vietnam veterans, would be used.
Illinois argued that charities should be compelled to use a percentage, or ratio, when determining the amount of each donation spent on fundraising expenses. Roughly $7 million was collected for VietNow during the period covered in the state
