Giving Children Hope (GCH) agreed to pay $400,000 to settle the investigation of the California Attorney General’s office into its alleged misleading reporting scheme.
In addition, GHV directors and officers including John Ditty, Sean Lawrence, V. William Barta, and Suzanne Bryant will pay additional $10,000.
Furthermore, the charitable organization agreed to stop providing misleading reports and eliminate its pharmaceutical Gift-in-Kind program.
Attorney General Xavier Becerra announced the settlement agreement with the charitable organization on Tuesday.
In a statement, Becerra said, “Today’s settlement should serve as a stern reminder to charities that lack transparency. My office is committed to protecting California donors and honest charities from the harm caused by accounting gimmicks used to mislead the public.”
Last year, the Attorney General’s office participated in the nationwide crackdown against fake veterans charities. The Federal Trade Commission (FTC) led the enforcement actions and consumer education initiative called Operation Donate with Honor.
California Attorney General’s office found evidence against GHC
The Attorney General’s office found evidence that GCH filed misleading documents to increase its ranking and obtain more Gift-in-Kind donations such as clothing, food, medicines, and medical supplies.