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$10 million in damages from N.Y. charity fraud case earmarked for VA research

July 8, 2014

Disabled Veterans will benefit from a legal settlement that is directing $10 million to VA research. (Photo by Jeff Bowen)

Disabled Veterans will benefit from a legal settlement that is directing $10 million to VA research. (Photo by Jeff Bowen)

In a case officials said involved the "largest amount of financial relief ever obtained...for deceptive charitable fundraising," the New York attorney general ordered Quadriga Art and Convergence Direct Marketing to pay $10 million in damages to help support Veterans. The ruling stems from misleading mailings sent on behalf of the Disabled Veterans National Foundation (DVNF), one of the nation's largest Veterans charities.

Quadriga and Convergence are for-profit direct-mail vendors contracted by DVNF. In addition to the damages, Quadriga must also forgive $13.8 million in debt owed by DVNF and pay the state of New York $800,000 in fees.

The $10 million in damages will go to support VA research on behalf of Veterans. Of that, $4 million will go to VA Health Services Research and Development, with $1.25 million earmarked for research on improving medical services, and another $1.25 million for studies on mental health. The remaining $1.5 million will be split evenly between research on Veteran homelessness and women Veterans' health.

VA's Rehabilitation Research and Development Service will receive $5 million to use at its discretion for research aiding disabled Veterans. The final $1 million will be directed to the James J. Peters VA Medical Center in the Bronx, N.Y., for research into spinal cord injuries.