Two men have been arrested in a sinister scheme to defraud millions out of donors who thought they were giving to charitable causes.
Richard Zeitlin and Robert Piaro were caught in Las Vegas, Nevada and Fredonia, Wisconsin respectively after they allegedly colluded to mislead donors into funding their shady political action committees.
Each man played a critical role in the proposed plot. Zeitlin, 53, was the fundraiser. He ran a multimillion-dollar telemarketing call center business that he used to make calls on behalf of Piaro’s PACs.
But according to his indictment, Zeitlin would often instruct his employees to lie to potential donors, misrepresenting those PACs as a charity or direct-services organization.
He started to receive complaints from donors, the indictment claims, but that didn’t stop him from continuing the scam. Rather, he allegedly had some of his employees “delete electronic messages relating to” the ruse.
In an effort to cleanse his public image, Zeitlin even launched a website to “defend my personal and professional reputation” from the nasty allegations.
Zeitlin’s call center profited big from the donations, raking in about 90 percent of each dollar raised, while the rest was given to the respective PAC.
Those PACs were operated by the other man, 73-year-old Piaro, who served as the treasurer of four Wisconsin-based PACs. Each PAC was noble in name and mission: the Emergency Responders PAC, the Veterans Assistance PAC, the Standing by Veterans PAC and the Breast Cancer PAC.
Each committee had promised to, “advance specific legislation, educate lawmakers, and conduct and fund research,” among other charitable activities, Piaro’s indictment claims. In reality, Piaro apparently had no intentions of doing any of those things.
Instead, Piaro allegedly misled donors blatantly as to how their money would be spent. He overrepresented how much would be given to charitable causes and exaggerated legislative goals, sending most of the money back to Zeitlin’s telemarketing company.
At one point, Piaro allegedly agreed to give 100 percent of the money raised by Zeitlin’s telemarketing business to the company, itself, rather than his PACs. Despite that, Piaro continued instructing telemarketers to hawk his PACs to potential donors, despite knowing full well that none of the money would be headed there, his indictment claims.
All in all, Piaro fraudulently raised $28 million from hundreds of thousands of donors nationwide, a DOJ press release claimed. He’s being charged with one count of wire fraud and one count of mail fraud—each of which carry a 30-year maximum sentence.
Zeitlin has been charged with one count of conspiracy to commit wire fraud and one count of wire fraud, which each carry a 30-year maximum sentence. He’s also being slapped with obstruction of justice charges, which carry a 20-year maximum sentence.
Additionally, Zeitlin’s multimillion-dollar Las Vegas home was reportedly raided by the FBI Thursday morning.