NEW YORK (Legal Newsline) – New York Attorney General Eric T. Schneiderman announced a settlement agreement between his office and the National Children’s Leukemia Foundation (NCLF) over claims of misconduct.
The Attorney General’s office alleged that NCLF, including its founder and leader Zvi Shor, its president Yehuda Gutwein, the founder’s son, Shlomo Shor, and its auditor, Schlomo Donn, conned New Yorkers through various methods.
The defendants in the
suit admitted to the charity’s misconduct, including the fact that it
did not operate a bone marrow registry, did not bank umbilical cord
blood and did not operate a cancer research center, despite claiming
medical expertise in providing services to sick and terminally ill
“My office will continue to go after so-called charities that cynically assume a sympathetic name and then deceive generous New Yorkers into making generous donations for persons in need,” Scheiderman said. “We are committed to ensuring that funds contributed by donors reach their intended recipients.”
As a result of the settlement, NCLF will be permanently closed and its officers barred from heading any charities in New York. The attorney general will also recover $380,000. These funds will be directed back into leukemia charities.