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ATTORNEY GENERAL CUOMO SUES “UNITED HOMELESS ORGANIZATION” FOR DECEIVING THE PUBLIC AND STEALING CHARITABLE DONATIONS

UHO Duped the Public into Making Donations for Homeless Services while Principals and Workers Pocketed Donations for Personal Expenses

NEW YORK, NY (November 24, 2009) - Attorney General Andrew M. Cuomo today announced that his office has filed a lawsuit against the not-for-profit group United Homeless Organization, Inc. (“UHO”), its founder and president Stephen Riley, and its director Myra Walker, alleging that Riley and Walker used the organization to dupe the public into donating cash to fund services for the homeless, when the money was instead used for personal expenses.

According to the lawsuit filed in New York Supreme Court, New York County, Riley and Walker had UHO workers set up tables across the city with plastic jugs to collect cash donations, telling sympathetic passersby that donated funds would be used for services for the homeless. However, Cuomo’s investigation revealed that all the money collected went directly to Riley and Walker, or was kept by the people working for UHO, instead of funding charitable programs or services. The lawsuit charges Riley, Walker, and UHO with engaging in a scheme to defraud and violating New York State’s not-for-profit and charitable solicitation laws.

“UHO exploits the good intentions of people who thought that their charitable donations were helping to fund services for the homeless,” said Attorney General Cuomo. “Instead, their donations go directly to UHO’s principals and workers, who abused the organization’s tax-exempt status to line their own pockets. The greater tragedy in this is that bad actors like UHO undermine the public’s willingness to give to legitimate charities across the state. My office will continue to uncover these unscrupulous organizations and ensure that they don’t threaten the generosity of hard-working New Yorkers.”................................>>>>.....................>>>>...................http://www.oag.state.ny.us/media_center/2009/nov/nov24a_09.html