46°
Although the sham Hurricane Sandy Relief Foundation claims all donations provide “immediate” relief to Sandy victims, the group has only given out $1,650 in gift cards during the three and a half months of its existence – an amount representing less than one percent of the $631,000 HSRF has raised in donations, state authorities said in a lawsuit filed today in Superior Court in Hackensack.
Purported relief fund name posted on a website and Facebook
Financial records show that John Sandberg and Christina Terraccino used the money to pay off credit cards, to have dinner at Vivo Tapas in Newark (among other restaurants), to buy a Christmas tree, to shop at the Apple online store and for other personal uses, state Attorney General Jeffrey S. Chiesa said this afternoon.
Terracino, 27, formerly of South Hackensack, posted the photo above on her personal Facebook page yesterday (the page was taken down late today).
UPDATE (12:30 p.m. Friday): In a comment emailed to CLIFFVIEW PILOT this morning, Christina Terracino said the photo “is from my sister’s wedding of which took place this weekend!! “How dare you insinuate that photo of me is associated with HSRF! This is dirty and low!” Asked to respond to the state’s allegations, she said to call her attorney.
Terracino and Sandberg listed the HSRF on Facebook as based in the borough, with an 800 phone number. Records show the couple, who live together in Sparta, used the Wyckoff address of Sandberg’s parents to file their application as a state charity.
On it, they claimed that the HSRF didn’t provide any compensation to its officers, directors, trustees, or executive staff, court papers allege.
However, the two “transferred more than $3,000 from the ‘Hurricane Sandy Relief Foundation ’s PayPal account to ‘Jezel Yepez,’ an alias for Anthony Yepez, despite the defendants’ representations to the Division [of Consumer Affairs] that he was a ‘volunteer’ for the organization,” Chiesa said.
Their application also under-reported the amount HSRF had raised by approximately $39,000, he said.
The HSRF hasn’t obtained 501(c)(3) status from the IRS, despite indicating on HSRF’s website, Facebook, and/or Twitter pages that it did, “thus misleading the public by stating donations to HSRF are tax-deductible,” the complaint says.
John Sandberg, Christina Terraccino
The “Donations” portion of the HSRF website includes a page titled “Hurricane Sandy New Jersey Relief Fund,” which states that “Hurricane Sandy New Jersey Relief Fund donations go towards cleanup efforts, and the future rebuilding of communities and lives destroyed by Hurricane Sandy.”
However, the Hurricane Sandy New Jersey Relief Fund, Inc. is the name of a separate, unaffiliated charitable organization — the one headed by Gov. Christie’s wife.
Unlike HSRF, “the actual Hurricane Sandy New Jersey Relief Fund is duly registered with the Division of Consumer Affairs to solicit charitable donations in New Jersey, and is registered with the IRS as a 501(c)(3) charitable organization,” Chiesa said.
The couple’s website included photos taken from the governor’s website, as well as personal stories posted by victims of Sandy. It also incorporated the familiar red, swirling hurricane icon.
Sandberg and Terracino also claimed in a newspaper article that the organization donated winter clothing to Sandy victims when it didn’t, the state suit adds.
“That same ‘Donations’ page on the HSRF website includes a PayPal link that encourages donors to make monetary contributions online,” Chiesa noted. “However, all contributions made via the PayPal link go to HSRF, not the Hurricane Sandy New Jersey Relief Fund.”
It also identifies “sponsors,” such as Hanes Brands and CSX Corporation. Contacted by the DCA, both denied any relationship or authorizing use of their corporate names or logos.
After learning of the couple’s dealings in December, “we reached out to this group, told them to provide extensive documentation about their fundraising and activities, and met with HSRF’s operators at our headquarters in Newark to address the myriad concerns we had about their activities,” said Eric Kanefsky, the DCA’s acting director.
“After a thorough investigation revealed multiple and ongoing violations of state law, we are now taking action to ensure that all of the money donated is used properly, in a manner consistent with the representations made to the public,” Kanefsky said.
State authorities have asked a judge in Hackensack to order that they cease soliciting donations, shut down their website, repay all the donations acquired by violating the law and pay civil penalties for each offense, among other relief.
“New Jersey’s law keeps charities honest by requiring them to register with the state and provide clear, truthful information when soliciting donations from the public,” Chiesa said. “This organization told the state it does not pay its executives, but our investigators found a paper trail reflecting thousands of dollars being transferred into the individual defendants’ personal bank accounts.
“Meanwhile, less than one percent of the money they raised has allegedly been paid out to help victims of Sandy.”
HSRF’s continuing solicitation of funds “constitutes an ongoing violation of the Charitable Registration and Investigation (CRI) Act and Charities Regulations, and prevents potential donors from being able to obtain clear and accurate information about the organization’s activities,” the state lawsuit filed today in Hackensack contends.
The alleged actions also violate New Jersey’s Consumer Fraud and Nonprofit Corporation Acts, the suit says.
Under the CRI and Consumer Fraud Acts, a first violation is subject to a civil penalty of up to $10,000. Subsequent violations are subject to penalties of up to $20,000.
Every solicitation of donations made while HSRF isn’t registered, and/or made through false or misleading statements, is considered a separate violation, Chiesa noted.
Chief Investigator Laurie Goodman, of the DCA’s Office of Consumer Protection, conducted the investigation. Deputy Attorney General Lorraine Rak, Chief of the Consumer Fraud Prosecution Section, and Deputy Attorney General Kourtney J. A. Knop are representing the state.
Click here to follow Daily Voice Hackensack and receive free news updates.
