This article is part of the Arthritis Archives.
Dateline: March 19, 2005
Sound-Alike Charity Scam Artist "Strykes" Out
Kent Ray Stryker, was finally found quilty of 12 counts of mail fraud for setting up more than a thousand bogus charities with names very similar to nationally recognized charities. Stryker was sentenced on 3/16/2005 to 51 months in federal prison for pocketing hundreds of thousands of dollars that victims thought were going to legitimate charities. In addition to his prison term, Stryker was ordered to pay a $10,000 fine.
How Did The Sound-Alike Scam Work?
We first wrote about Stryker after Diane Sawyer and Arnold Diaz reported on his sound-alike charity scam on the "20/20" television program. The report focused on Stryker who obtained numerous fictitious business names (FBNs) that sounded like legitimate charities. He then obtained more than 1,100 toll-free, 1-800 phone numbers for the FBNs. For example, The Arthritis Foundation is a nationally recognized organization helping those with arthritis for over 50 years. However, one of his "strykingly" similar sound-alike charities was called the "National Arthritis Association". Donors from all over the country wanting to contribute to The Arthritis Foundation or another legitimate charity would call the toll-free directory assistance and sometimes, either through operator error or because the donor did not know the true name of the charity, they would be directed to one of Stryker's 1-800 numbers.
It was later learned at trial that Stryker directed his telemarketers to conceal from donors that they were being instructed to send their money to mail drops in California and Washington, DC. If a suspicious donor asked questions about the purported charity, Stryker instructed telemarketers to explain that the bogus charity was an umbrella organization or was somehow related to or affiliated with the legitimate charity. In some cases, the telemarketers told donors that the bogus charity focused on prevention of a disease.
When interviewed by 20/20 Stryker insisted that he was not trying to mislead, misrepresent, or deceive people. Stryker claimed the mission of his business was to expand awareness about alternative medicine and portrayed his organization to be "The National Association For Advancement In Medicine", which by-the-way did not have a toll-free number. He also said that money collected from donations was used to send out brochures about the use of magnets to treat various illnesses.
The Sound-Alike Scammer Goes To Trial
Stryker went to trial with a case investigated by the United States Postal Inspection Service and the Federal Bureau of Investigation.During Stryker's trial, a series of victims testified that they sought out a nationally recognized charity after a relative or associate had been affected by a disease such as arthritis. They believed that their donations would be used for research to find a cure for the disease. Instead, the donations to Stryker's "charities" were used for Stryker's personal benefit.
One of the telemarketers, Patrick Ralph Kretschmer, who used the alias "Doug White," was convicted at trial along with Stryker. The jury convicted him of 10 counts of mail fraud. Kretschemer is scheduled to be sentenced later this year.
The American Cancer Society, The American Heart Association, and The Arthritis Foundation also sued Stryker for "willfully, knowingly, and maliciously" using "confusingly similar names" and for diverting donations from them. The diverted donations where estimated to be around $500,000 a year. According to a report in the North County Times, this case ended in a settlement.
How Can You Better Protect Yourself?
When thinking about donating to a charity, consider these tips:
- Before offering donations, make absolutely certain you are dealing with the desired, legitimate charity.
- Be wary of appeals that tug at your heart strings, especially pleas involving patriotism and current events.
- Be aware of Phishing or Spoofing scams.
- Do not reply to unsolicited ("SPAM") incoming emails.
- Ask for the name of the charity if a telemarketer does not provide it promptly.
- Ask what percentage of your donation will actually be used for causes, versus administrative costs.
- Go directly to recognized charities websites.
- Contact the charity to verify solicitations and/or that they have authorized the use of its name.
- Discuss the donation with family or a trusted friend before sending funds.
- Never provide any credit card or bank account information until you have reviewed all information and made your decision to donate.
- Ask for a receipt showing the amount of the contribution also stating that it is tax deductible.
- Understand that contributions made to a tax exempt organization are not necessarily tax deductible.
- Avoid cash gifts.
Related Resources
Sources:
The Name Game, 20/20, ABCNEWS.com, 9/27/98 transcript; News Briefs, North Co Times, 10/13/04; USAO,CDCA, Release No. 05-048 <http://www.usdoj.gov/usao/cac/pr2005/048.html>; FTC Charity Checklist <http://www.ftc.gov/bcp/conline/pubs/misc/charitycheck.htm>
First published: 10/27/1998, Second update: 03/19/2005
