Illinois nonprofit to dissolve to settle fraud lawsuit - KSBY.com | San Luis Obispo and Santa Barbara Area News

Illinois nonprofit to dissolve to settle fraud lawsuit

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ROCKFORD, Ill. (AP) - The Illinois attorney general has announced a settlement by the state and more than 20 other states in a lawsuit accusing a Rockford-based veterans nonprofit of scamming donations.

The Rockford Register Star reports that Attorney General Lisa Madigan sued VietNow National Headquarters after an investigation found the nonprofit had spent 80 percent of its donations on payments to for-profit telemarketers.

Madigan agreed to an order Monday that dissolves the agency's board of directors and bans its four controlling officers from any fundraising, charity management or oversight of any charitable assets in Illinois. The nonprofit's assets will be split between two legitimate organizations that assist Vietnam veterans.

The 23 other states investigating VietNow will enter into a state-specific settlement agreement with the nonprofit that's similar to those in the Illinois order.

Information from: Rockford Register Star, http://www.rrstar.com

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