A man from Las Vegas has pleaded guilty to a federal charge of conspiracy to commit wire fraud in New York City on Tuesday. Richard Zeitlin, 54, admitted to deceiving individuals into donating millions of dollars to what they believed were charitable organizations, but instead were political action committees or his own enterprises. His sentencing is scheduled for December 10, with a recommended prison term of 10 to 13 years as per the plea agreement he reached with prosecutors.
Zeitlin is required to forfeit $8.9 million linked to the fraudulent activities, in addition to any potential fines or restitution ordered by the judge during sentencing. The scheme, conducted between 2017 and 2020, involved the utilization of call centers operated by Zeitlin since 1994 to raise substantial funds for charities and political action committees, per court documents.
During this period, Zeitlin misled donors through the call centers by providing false information regarding how their donations would be utilized and the intended beneficiaries. While contributors were led to believe they were supporting causes like veterans, law enforcement personnel, and breast cancer patients, a significant portion of the funds raised actually went to Zeitlin’s companies.
Zeitlin reportedly encouraged certain clients to establish political action committees over charities to circumvent specific regulations and obligations associated with charitable organizations. He instructed staff to alter phone scripts to mislead donors into believing they were contributing to charities rather than political causes, as this approach generated more substantial donations.
In one scenario described in the indictment, a call center employee misrepresented a donation as assisting handicapped and disabled veterans in obtaining medical necessities they couldn’t receive through the Veterans Administration. Moreover, Zeitlin allegedly rerouted funds meant for political action committees to his companies, depriving the intended causes of financial support.
U.S. Attorney Damian Williams commented that Zeitlin’s fraudulent behavior not only exploited the generosity of donors but also eroded the trust placed in these charitable endeavors for personal profit.
