Attorney General: Telemarketer misled public about fundraiser

An Elk Grove Village-based telemarketer and professional fundraiser is being sued by Illinois Attorney General Lisa Madigan, who charges it with misleading the donating public, officials said Thursday.

Madigan's three-count complaint charges Safety Publications Inc. and owners Adam Herdman and Arthur Olivera with:

• Not telling donors who was making the solicitation and how the donations would be used.

• Acting on behalf of a charity without maintaining the required registration and failing to disclose or account for fundraising activities.

• Violating consent decrees previously entered into with Madigan's office.

Records show only a fraction of the contributions the company collected actually went to pay for charitable programs, Madigan's office said.

"These fundraisers are brazen con artists who refuse to follow the law and continue to fundraise illegally in spite of a previous court order," Madigan said in a statement. "I am filing this lawsuit to put an end to their serial fraud. When people donate their money to a worthy cause, their money should be used to further the mission of the charity."

Neither Herdman or Olivera could be immediately reached, but someone who answered the phone at Safety Publications said they would be given the message.

The lawsuit alleges Safety Publications failed to disclose it was a for-profit fundraising firm when soliciting on behalf of Rockford-based VietNow National Headquarters, which pledges to help veterans overcome joblessness and post-traumatic stress disorder.

The company also failed to account for its paid fundraising activities in annual financial reports, and Olivera didn't disclose a previous felony conviction on registration documents, according to Madigan's office.

The suit seeks to prohibit the owners from soliciting for Illinois charities any more.