From: "nigel allen" <nigel.allen@canrem.com>
Subject: "drug education" scam
Reply-To: "nigel allen" <nigel.allen@canrem.com>
Organization: Canada Remote Systems
Distribution: k12
Date: 5 Nov 92 21:51:17 EST

Here is a press release from the Attorney General of Virginia.

 Terry Applauds Ruling in Case of Deceptive Funds Solicitation
 To: City Desk
 Contact: David A. Parsons of the Office of the Attorney General of
          Virginia, 804-786-3518

   RICHMOND, Va., Nov. 4  -- Attorney General Mary Sue Terry 
today applauded a Henrico County Circuit Court's ruling that a
Florida company used deceptive tactics when it solicited money in
Virginia for children to visit a traveling "museum" to learn about
the dangers of drugs.
   In his ruling, Circuit Judge L.A. Harris ordered the company --
Community Benefit Services Inc. (CBS) -- to pay $20,000 to Virginia
for distribution to legitimate charities.
   The attorney general filed suit against CBS and its owners on May
8, 1991.  CBS is a for-profit corporation that owned a
tractor-trailer that housed an exhibit to discourage drug abuse.
The trailer traveled around the country and made half-day stops in
parking lots where the public could walk through the exhibit.
It visited about a half-dozen locations across the state, including
Henrico, in 1990.  A two-day trial was held in September 1992.
  "Obviously, the public is very interested in programs that educate
children about drugs," Terry said.  "These people took advantage of
that in order to try and make a fast buck."
   The attorney general's suit alleged that CBS telephoned Virginians
from its Florida office and led them to believe that it was a local
Virginia charity.  It also used local, Virginia return addresses that
it rented from private mail box services.  CBS asked donors to send
money so it could invite deserving local children to tour the
trailer, which it called the Children's Traveling Museum.
   The suit alleged that many Virginians assumed that CBS was a
not-for-profit organization and that their payments were tax
deductible.  CBS did not disclose during much of its operation in
Virginia that it was, in fact, a for-profit corporation and that
donations to it were not tax deductible.
   The suit also alleged that CBS did not effectively distribute
tickets to local children.  In the Richmond area, only one school
received any tickets, and its tickets arrived after the school year
ended.  Other tickets were sent to a Roanoke for-profit company,
which left them on its retail customer counter to be ignored or taken
by anyone, regardless of age or need.
   In its ruling, the court held that: "Defendants did employ in the
solicitation or collection of contributions devices, schemes, or
artifices which allowed them to obtain monetary contributions through
material misrepresentations and misleading information."
   The court ruled that CBS and its owners should pay back $20,000,
which is the majority of the company's take from Virginia.  When
collected, the state will distribute the money to legitimate
charities under the supervision of the court.
   The court also ruled that, in any future solicitations, CBS must
first register with the Virginia Division of Consumer Affairs,
disclose its location and that of its telephone solicitors, and
disclose that it is a for-profit business.
   The case was investigated by the Virginia Division of Consumer
Affairs.
 -30-
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