Fraudulent military care-package charity settles with Colorado AG
DENVER (KDVR) — The Colorado Attorney General’s Office announced that an investigation into a fraudulent, unregistered charity has resulted in a settlement and the end of the charity’s operations.
First Choice Processing, its owner Durand Kelby Tovar, Tovar’s associate companies and the Colorado Attorney General’s Office announced a settlement on Thursday that was spurred by an investigation into Tovar’s alleged operation of an unregistered charity that purported to benefit active-duty service members, veterans and their families. The charity was in operation since at least 2013, according to the AG’s Office.
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“Fake charities of any kind are wrong and illegal, but it’s especially despicable for someone to take advantage of those who want to support our active-duty service members, veterans, and their families,” Weiser said in a release. “We owe those who serve our country a deep debt of gratitude, and we will hold accountable fraudsters who defraud service members and veterans for personal gain.”
Tovar, a Summit County resident, allegedly solicited door-to-door donations, asking residents for money to buy care packages that he claimed would be mailed to military members. Instead, investigators say that Tovar sent very few of the promised care packages and instead pocketed the cash.
The office’s investigators found that marketing materials for the purported charity claimed a third-party distributor “annually sends 10,000 plus care packages filled with snacks, entertainment, hygiene and hand-made items, plus personal letter of appreciation to Veterans, New Recruits, and individually named U.S. services members deployed overseas.”
Investigators say they couldn’t confirm if Tovar sent even one package since at least 2021, despite Tovar continuing to solicit donations. Tovar also told investigators that his companies had not used the distributor named in marketing materials since 2017 and had not sent anywhere close to 10,000 care packages annually.
Tovar also did not register his charity with the Colorado Secretary of State’s Office, or register himself as a paid solicitor.
Under the settlement, Tovar is barred from “engaging in any direct or indirect charitable activities,” and faces a $20,000 fine to the AG’s Office. If Tovar fails to comply, he will be required to pay $50,000.
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Weiser warned consumers that they should be skeptical of anyone going door-to-door to solicit charitable contributions.
“Legitimate charities rarely use door-to-door solicitation, but scammers posing as charities often do so,” Weiser’s office wrote in a release.
For more information on how to spot scams and report fraud, consumers can visit stopfraudColorado.gov.
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