A Las Vegas man pleaded responsible Tuesday to a federal prison cost alleging that he duped individuals into donating tens of hundreds of thousands of {dollars} to what they thought have been charities, however have been actually political motion committees or his personal corporations.
Richard Zeitlin, 54, entered the plea to conspiracy to commit wire fraud in Manhattan federal court docket, the place sentencing was set for Dec. 10. A plea settlement he signed with prosecutors advisable a sentence of 10 to 13 years in jail.
He additionally agreed to forfeit $8.9 million, representing proceeds traceable to the crime, along with any advantageous, restitution or different penalty the decide would possibly impose at sentencing. His lawyer declined remark.
Zeitlin carried out the fraud from 2017 by means of 2020 through the use of “call centers” that he has operated since a minimum of 1994 to boost a whole bunch of hundreds of thousands of {dollars} for charities and political motion committees, in keeping with an indictment.
Since 2017, he used the decision facilities to defraud quite a few donors by offering false and deceptive details about how their cash could be spent and the character of the organizations that will obtain their cash, the indictment stated.
Though donors have been instructed they have been serving to veterans, regulation enforcement officers and breast most cancers sufferers, as much as 90 p.c of the cash raised went to Zeitlin’s corporations, in keeping with court docket papers.
It stated Zeitlin inspired some potential purchasers beginning in 2017 to function political motion committees quite than charities as a result of they may dodge laws and necessities distinctive to charities.
Zeitlin directed employees to alter their telephone solicitation scripts to persuade individuals they have been donating to charities quite than a political trigger as a result of that method attracted more cash, the indictment stated.
For example, it stated, a name middle worker would inform somebody {that a} donation “helps the handicapped and disabled veterans by working on getting them the medical needs” they may not get from the Veterans Administration.
Typically, the indictment stated, Zeitlin cheated the political motion committees of cash too by diverting cash to his corporations quite than to the causes that have been described by name middle employees.
“Zeitlin’s fraudulent actions not only undermined the trust of donors but also exploited their goodwill for personal gain,” U.S. Legal professional Damian Williams stated in a launch.
