Judge orders Girard company to pay nearly $1 million for fraudulent fundraising

Staff report

WARREN

A judge in Trumbull County Common Pleas Court has ordered PJG Enterprises, 206 N. State St., Girard, to pay $977,628 in damages, restitution and other costs for soliciting and receiving donations on behalf of two fraudulent charitable organizations.

The American Breast Cancer Federation and The American Veterans Federation promised to help breast-cancer patients or veterans, but helped no veterans and contributed only $600 to breast-cancer patients. The organizations solicited donations across the United States.

Three North Brockway Avenue, Youngstown, men who solicited funds on behalf of PJG and the two organizations were ordered to close the organizations and never again work in the charitable-donation field.

One of the men, Brandon P. Malone, also was ordered to pay $46,000 over 19 years as part of the resolution of the case. Paul Grossi, who owned PJG Enterprises, was ordered to pay $3,000 over five years. The third participant was Amaury C. Serrano. He received no specific payment order.

PJG Enterprises has agreed to pay $350,000 to the Ohio Attorney General’s Office, which filed the civil action that resulted in the settlement. The payments will be used to support organizations that serve breast-cancer patients and veterans.

Judge Andrew Logan’s order also ordered PJG Enterprises to pay restitution of $73,272, civil penalties of $110,000 and investigative costs and attorney fees of $366,359.

Attorney General Mike DeWine said The American Breast Cancer Federation, created in March 2010, stated its goal as increasing public awareness of breast cancer, counseling patients and giving financial assistance to patients.

The American Breast Cancer Federation raised at least $366,000 in donations but gave only $600 in direct aid to breast-cancer patients, DeWine said.

The American Veterans Federation, created in April 2011, claimed to assist veterans but never did, DeWine said.

“It’s infuriating when scammers dupe generous Americans into donating to sham charities by confusing them with legitimate-sounding names,” DeWine said. “I am pleased that the money donated will now go to charities for breast cancer and veterans as intended.”

DeWine reminds potential donors to ask for written information before making a contribution and to avoid sharing bank or credit-card information when responding to unexpected calls.

Warning signs of a scam include overly aggressive or pushy tactics and callers who are unable or unwilling to answer questions.

Consumers should report suspicious charitable activity to the Ohio Attorney General’s Office at www.OhioAttorneyGeneral.gov.