New Jersey Youth Club, Inc. has been ordered to temporarily stop soliciting for charitable donations and has had its assets frozen, Acting Attorney General John J. Hoffman announced on Wednesday.
The court order came following allegations that the organization violated the state's Consumer Fraud Act and the Charitable Registration and Investigation Act by going door-to-door to solicit donations although it is not registered as a charitable organization. The club's representatives also allegedly made misleading and untruthful statements while seeking donations.
“This organization solicited donations from the public by saying contributions would help fund constructive programs for at-risk New Jersey youths,” Hoffman said. “Instead, Newark teenagers allegedly were directed to make door-to-door solicitations for contributions, the majority of which were transferred to a for-profit business in New York.”
The club markets itself as an organization that helps at-risk children by offering recreational activities, such as trips to sporting events, and mentoring. Allegedly only a small amount of solicited donations have gone toward these efforts.
“New Jersey law requires charities and their representatives to be truthful and honest when seeking donations,” Division of Consumer Affairs Acting Director Steve C. Lee said. “Those who attempt to unlawfully take advantage of the generosity of New Jerseyans will be held accountable.”
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