The District Attorney said a North Hollywood car donation charity is accused of deceiving donors regarding their legitimacy as a charity. They are facing a $3 million lawsuit. The suit was a consumer protection lawsuit about the amount of money actually allocated for charity.

An injunction is sought in addition to the damages.

The organization was not available for comment.

It was said that the organization spent the money on administrative costs, advertising, towing and car repairs. This is compared to their claim that 100% of the money was given to charities. It appears that the claims of the organization were false. This is the basis of the lawsuit.

Audits revealed that of $700,000 that the organization claimed it donated, only $185,000 was actually donated.

The organization also claimed that towing services were free and that repairs could be done at a low cost when in actuality charges were made for towing and there  was no staff available to do repairs.

In addition, the organization gave money for donated cars, making it an unlicensed used car business.

This is a violation of California law.

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Source: LA Watts Weekly

[caption id="" align="aligncenter" width="670" class="zemanta-img"] A Mazda MPV minivan being donated to a charitable organization. The flatbed of the tow tuck is being brought back to a 90 degree position. (Photo credit: Wikipedia)[/caption]