“While we watch the immense suffering in Nepal, New Jerseyans are rightly moved to do whatever they can to help,” Division of Consumer Affairs Acting Director Steve Lee said. “Superstorm Sandy made it abundantly clear that disasters bring out the best in most of us – but they also bring out opportunities for fraud. Don’t just assume that an attractive-sounding appeal is legitimate. Look closely at any organization or individual who solicits your money.”

The Division is paying close attention to online solicitations related to the earthquake in Nepal, and has noted dozens of new web domain names, mentioning “Nepal” and terms such as “earthquake,” “donate,” “relief,” or similar terms, that were registered during the past few days.

Similarly, during the months of 2012 and 2013 that immediately followed Superstorm Sandy, the Division identified dozens of organizations that had not yet registered with the State as charitable organizations, but that began soliciting donations in New Jersey on behalf of Sandy victims. The Division contacted those organizations to assist them in complying with New Jersey’s charitable registration requirements.

In February 2013, the Division filed suit against an allegedly fraudulent organization, the Hurricane Sandy Relief Foundation (HSRF), and its principals, alleging that they misled the public by diverting donated funds into their personal accounts, falsely claimed donations were tax-deductible when the organization did not have 501(c)(3) status, and operated an unregistered charity, among other violations of New Jersey’s Charitable Registration and Investigations Act, Charities Regulations, and Consumer Fraud Act.

Through a settlement reached in June 2013, a court-appointed Organization Administrator dissolved the organization and distributed its donated funds to registered charities raising money for Sandy victims in New Jersey and New York.

The Division offers the following tips for New Jerseyans who seek to donate for victims of the earthquake that struck Nepal:

Consumers may obtain information about a charity in several ways. They can ask the charity itself (reputable charities encourage you to do so), or visit the charity`s website.
Consumers can also obtain this information from the New Jersey Division of Consumer Affairs. Visit the Division`s Charities Registration page; call the Division`s Charities Hotline at 973-504-6215 during regular business hours; or use the Division`s free "New Jersey Charity Search" smartphone app.

Consumers who believe they have been cheated or scammed by a business, or suspect any other form of consumer abuse, can file an online complaint with the State Division of Consumer Affairs by visiting its website or by calling 1-800-242-5846 (toll free within New Jersey) or 973-504- 6200.

####