[Hpn] Three admit charity scam

Dave and Deb Ward dlwdaw@bellatlantic.net
Fri, 23 Nov 2001 15:04:18 -0500

<html><div style='background-color:'><DIV>
<P>It is assholes like this that makes it hard for social service agenies.</P>
<P>Dave Ward<BR><BR></P></DIV>
<DIV></DIV>&gt;From: "wtinker" <WTINKER@METROCAST.NET>
<DIV></DIV>&gt;Subject: [Hpn] Three admit charity scam 
<DIV></DIV>&gt;Date: Thu, 22 Nov 2001 21:37:06 -0500 
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<DIV></DIV>&gt;From hpn-admin@lists.is.asu.edu Thu, 22 Nov 2001 18:37:34 -0800 
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<DIV></DIV>&gt; Nov. 22, 2001 
<DIV></DIV>&gt; Three admit charity scam 
<DIV></DIV>&gt; Gail Swainson 
<DIV></DIV>&gt; York Region Bureau 
<DIV></DIV>&gt; Three men have pleaded guilty in Newmarket court to a complex 
<DIV></DIV>&gt; food bank scam where food donated by unwitting corporations to aid the 
<DIV></DIV>&gt; was actually sold to wholesalers. 
<DIV></DIV>&gt; David Penney pleaded guilty in the Ontario Court of Justice to 
<DIV></DIV>&gt; an offence under the Competition Act. He was sentenced by Mr. Justice 
<DIV></DIV>&gt; William Gorewich to two years less a day, to be served in the community. 
<DIV></DIV>&gt; Under the terms of his sentence, Penney will be allowed to 
<DIV></DIV>&gt; operate a food bank called Canadian Fair Share, said Crown Attorney Harold 
<DIV></DIV>&gt; Dale. 
<DIV></DIV>&gt; Peter McAfee and Randy Crane both pleaded guilty to conspiracy 
<DIV></DIV>&gt; to commit a fraud on the public. They are to be sentenced Nov. 28. 
<DIV></DIV>&gt; An agreed statement of fact says the three worked for St. 
<DIV></DIV>&gt; Francis Food Bank of the Missionary Church of Saint Francis of Assisi, 
<DIV></DIV>&gt; portrayed itself as a charitable organization distributing donated food to 
<DIV></DIV>&gt; the needy and homeless. 
<DIV></DIV>&gt; Documents show food donations were solicited from major 
<DIV></DIV>&gt; corporations, but much of the product was instead wholesaled to 
<DIV></DIV>&gt; neighbourhood stores without the corporations' knowledge. 
<DIV></DIV>&gt; Scammed corporations included Nabisco Ltd., General Mills Ltd., 
<DIV></DIV>&gt; Campbell Soup, Coca-Cola Ltd., Longo Brothers Fruit Market Inc., Quaker 
<DIV></DIV>&gt; Company of Canada, Pillsbury Canada Ltd., Yoplait, Kellogg's and Kraft 
<DIV></DIV>&gt; Canada. 
<DIV></DIV>&gt; The market value of the donations from 56 corporate donors was 
<DIV></DIV>&gt; about $3 million, said the court documents. 
<DIV></DIV>&gt; The men knew that officials with St. Francis were falsely 
<DIV></DIV>&gt; stating that the Toronto-based organization was a member of the Canadian 
<DIV></DIV>&gt; Association of Food Banks and was registered with Revenue Canada as a 
<DIV></DIV>&gt; recognized charity. In fact, Revenue Canada rejected an application made by 
<DIV></DIV>&gt; St. Francis for charitable status, said court documents. 
<DIV></DIV>&gt; The trio also knew corporations were falsely told that all 
<DIV></DIV>&gt; donated products were passed on to the needy and that St. Francis operated 
<DIV></DIV>&gt; bus service for seniors and a winter night patrol program for street 
<DIV></DIV>&gt; The statement said products judged unsuitable for wholesale to 
<DIV></DIV>&gt; neighbourhood stores were sold to the public at a thrift shop operated by 
<DIV></DIV>&gt; St. Francis or were traded or given to legitimate food banks. 
<DIV></DIV>&gt; The thrift store, which operated under the name Angels of Mercy 
<DIV></DIV>&gt; on Danforth Ave., charged shoppers a fee of $12 a year, though in fact 
<DIV></DIV>&gt; anyone could shop there without paying the fee. 
<DIV></DIV>&gt; The three men either made or were aware of misrepresentations 
<DIV></DIV>&gt; made to the corporations about how the food was distributed, the statement 
<DIV></DIV>&gt; said. 
<DIV></DIV>&gt; Court documents said the three also knew most of the food 
<DIV></DIV>&gt; donated in good faith by corporations would not be handed out to the needy. 
<DIV></DIV>&gt; While food traded to food banks by St. Francis was often 
<DIV></DIV>&gt; inedible or unusable, quality food products that came from legitimate food 
<DIV></DIV>&gt; banks were sold to wholesalers. Most of the cash proceeds went to Penney 
<DIV></DIV>&gt; another man, the documents said. 
<DIV></DIV>&gt; A fourth man, Robert MacKenzie, has pleaded not guilty to 
<DIV></DIV>&gt; charges of conspiracy to commit fraud and fraud in relation to the food 
<DIV></DIV>&gt; operation. His trial is scheduled to resume Monday.