Two individuals have been arrested by federal officials for defrauding donors who gave money to political nonprofit groups. Richard Zeitlin, who operated telemarketing call centers, and Robert Piaro, a treasurer of political nonprofit groups, targeted small donors who wanted to support causes like aid for military veterans and breast cancer research. According to the U.S. attorney for the Southern District of New York, Damian Williams, these men took advantage of the goodwill of everyday citizens and exploited important causes.
The charges against Mr. Zeitlin, 53, from Las Vegas, include fraud, obstruction of justice, and conspiracy. Mr. Piaro, 73, from Fredonia, Wis., is charged with wire fraud and mail fraud. If convicted, both individuals could face significant prison sentences.
Although the indictments do not explicitly state that Zeitlin and Piaro were collaborating on the same scheme, it has been reported that Zeitlin’s company raised money for Piaro’s groups. Mr. Zeitlin allegedly directed his call center employees to deceive donors by making them believe they were contributing to charities instead of political groups.
The indictment against Mr. Piaro reveals that he made fraudulent claims about how donations to political action committees (PACs) would be used, resulting in approximately $28 million being raised through false statements and misrepresentations. However, the majority of these funds, about $22 million, ended up in the hands of a single individual who provided telemarketing services for the nonprofit groups.
Additionally, Mr. Piaro paid himself around $526,000 from the funds raised by the PACs he controlled. Some of the groups listed in his indictment, such as the Standing by Veterans PAC and Americans for the Cure of Breast Cancer PAC, have since ceased operations. The Association for Emergency Responders and Firefighters PAC and the U.S. Veterans Assistance Foundation PAC are currently seeking permission from the Federal Election Commission to close. Attempts to reach Mr. Piaro through his nonprofits have been unsuccessful.
A previous investigation by the nonprofit Center for Public Integrity found that Mr. Zeitlin’s companies had been paid over $133 million by nonprofits and PACs since 2006, keeping the majority of the funds raised for themselves. Mr. Zeitlin defended his work, stating that fundraising is an expensive endeavor and emphasizing his clean record. Similarly, Mr. Piaro cited high fundraising costs during the early stages of his groups’ formation but faced criticism for raising millions of dollars without allocating any of it to candidates.
In light of these revelations, it is crucial to be cautious when donating to political nonprofit groups and to conduct thorough research to ensure the legitimacy of the cause and its management of funds.
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