The New York State attorney general's office filed court papers Monday seeking to shut down a Brooklyn-based nonprofit that authorities accuse of drawing millions of dollars from donors with exaggerated claims about serving young leukemia patients, reports The New York Times.
Officials said more than 80 percent of the $9.7 million raised by the National Children's Leukemia Foundation from mid-2009 to mid-2013 was plowed back into telemarketing and direct-mail campaigns. During that period, the charity gave less than $58,000 in "direct cash assistance" to patients while paying its founder, Zvi Shor, nearly $1.2 million in salary and deferred compensation, according to the court petition.
The attorney general's office alleged that fundraising pitches touting the foundation's bone-marrow registry and research building in Israel were largely false. Mr. Shor, who started the charity in 1991 after losing a son to leukemia, has denied any wrongdoing and ran the organization "with the best of intentions," said his lawyer, Douglas Gross.