Sham Fundraiser Bilked Maryland Donors Out Of $1M: State Official

BALTIMORE, MD — Two top Maryland officials announced last week that a cease-and-desist order has been issued against a Burtonsville man and several fake charities that scammed the public out of more than $1 million. Attorney General Brian Frosh and Secretary of State John Wobensmith said Friday that the order was issued against Stephen D. Everhart and three charity groups — Lion Fundraising, Police Journal and Fire Yearbook, and Lion Fraternal Order of Police Assistance Fund LLC.

The move followed a state investigation that found that since 2012, Everhart sought donations for fake law enforcement, firefighter and veterans' charities, receiving more than $1 million in violation of the Maryland Solicitations Act. He solicited by telephone and collected donations from unsuspecting donors by using a cash-on-delivery service, according to a statement from Frosh's office.

Sham charities "steal from consumers and violate the trust of those who donate," Frosh said in the statement. "Fake charities also hurt legitimate charitable organizations by siphoning off support from their good work. We are committed to putting these fraudsters out of business.”

Everhart failed to register with Maryland's Office of the Secretary of State as either a charity or fundraiser before soliciting and collecting donations, the statement added.

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As part of the scam, Frosh and Wobensmith said that Everhart sent fake thank-you notes to donors from a number of police, fire and veterans groups, including McKimmie-Catterton Maryland Police Post 2979, Anne Arundel Police Post 2979, Maryland Fire Post, D.C. Police Assistance Funding, D.C. Lion Fraternal Order of Police, Police Fire Veterans Assistance Fund 2979 and Veterans of Foreign Wars Post 2979.

In the cease-and-desist order, Wobensmith, the secretary of state, says that Everhart can request a hearing with his office by Oct. 29. Wobensmith also says his office reserves the right under state law "to refer this matter to the Attorney General for civil enforcement and to the State's Attorney for criminal prosecution."

State officials are asking anyone who may have been solicited by Everhart, Lion Fundraising, Police Journal and Fire Yearbook or Lion Fraternal Order of Police Assistance Fund LLC to call the Office of the Secretary of State's Charities and Legal Services Division at 410-260-3859.

To check if a charity or a professional solicitor is registered or to report other suspected violations of charitable giving law, call 410-260-3879 or 1-800-825-4510.

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