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Attorney general: 10 fake charities operating in Michigan dissolved

An Ingham County judge ruled that three people engaged in fraud with the organizations
(WJRT)
Published: Jul. 1, 2021 at 11:58 AM EDT
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LANSING, Mich. (WJRT) - Ten charities operating in Michigan under the names of recognizable national organizations have been dissolved.

Michigan Attorney General Dana Nessel said the 10 nonprofits were not affiliated well established national organizations they were named after and appeared to serve no charitable purpose. They used names like the American Cancer Society, American Red Cross and United Way.

An Ingham County judge ruled last week that three people involved with the 10 organizations engaged in fraud and dissolved all 10 nonprofits. The three suspects were banned from getting involved with the management of any other charities in Michigan.

“I’m pleased by this outcome, which goes to ensuring Michiganders looking to support important causes don’t have to worry about fraudulent entities that take advantage of generous individuals,” Nessel said. “We remain committed to protecting charitable interests in this great state and I encourage people to research charities through our website to determine legitimacy before donating.”

She announced legal proceedings against the 10 allegedly fake charities in September. Nessel said Ian Richard Hosang incorporated charities under the following names in 2018:

  • American Cancer Foundation of Detroit, Grand Rapids, Lansing and Michigan.
  • American Cancer Society of Detroit and Michigan.
  • American Red Cross of Detroit and Michigan.
  • United Way of Detroit and Michigan.

Claudia Stephen and Lincoln Palsey both are named as officers and directors of some entities. They and Hosang all have legal addresses in New York and none of them registered with the Attorney General’s Office Charitable Trust Division as required, Nessel said.

The 10 charities all have the same listed address in the Grand Rapids suburb of Grandville, according to court documents.

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