Attorney General Phil Weiser has announced a settlement with First Choice Processing, its owner Durand Kelby Tovar, and his associated companies following an investigation into fraudulent activities. The investigation revealed that Tovar was operating an unregistered charity that falsely claimed to support active-duty service members, veterans, and their families.
The illegal operation began around 2013 when Tovar started soliciting donations door-to-door in Summit County. He asked consumers for money to purchase care packages intended for military personnel. However, investigators discovered that Tovar had been deceiving donors for years, delivering very few of the promised care packages. Furthermore, he failed to register his charity with the Colorado Secretary of State or himself as a paid solicitor as required by state law.
Weiser condemned such fraudulent activities saying, “Fake charities of any kind are wrong and illegal, but it’s especially despicable for someone to take advantage of those who want to support our active-duty service members, veterans, and their families.” He added that they would hold accountable those who defraud service members and veterans for personal gain.
Tovar lured potential donors with misleading promises. His marketing materials claimed a third-party distributor annually sent over 10,000 care packages filled with snacks, entertainment items, hygiene products and handmade items along with personal letters of appreciation to Veterans, New Recruits and U.S. services members deployed overseas.
However, according to Tovar's own admission to investigators, his companies stopped using the distributor since at least 2017 and did not send anywhere near 10,000 care packages annually to military members or veterans. Despite continuing to solicit donations since at least 2021, investigators could not confirm if Tovar had sent even a single care package.
Under the settlement terms, Tovar is permanently prohibited from engaging in any direct or indirect charitable activities. He will also pay a $20,000 fine that may be used at the attorney general’s discretion for restitution, consumer education, enforcement, or to advance public welfare. If Tovar fails to comply with the settlement terms, he will be required to pay $50,000.
The attorney general advises consumers to be wary of anyone soliciting charitable contributions door-to-door as legitimate charities rarely use this method while fraudsters often do. Consumers can find more information on how to identify and avoid charity scams and report fraud at StopFraudColorado.gov.