years. ever since we found out these two groups, one a company, one a charity, have been taking your generous donations to our nation s disabled veterans and pocketing almost all of the money. we are doing a story on quadriga arts and we re with cnn. the investigation covered she had almost total control over the charity. in effect, a charity was a front for quadriga s profit driven scheme. they got folks up to get the charity going and used their counsel to advise the charity and entered into a contract to lute qquadrigga and she had control of the funds going in. reporter: out of a total of $116 million raised by the charity over the years $104 million went to the direct mail fund-raiser according to new york state. and most of the donations that
money your donated money q uadriga will take for itself. they were taking money to feed your overhead and pay your executives off as quadriga did here is despicable. the family company who announced an uncle who helped run the company tommy shuloff has ha resigned and his son mark is running the company and released this statement saying we have taken responsibility for the mistakes made and deeply apologize for our actions and have taken actions to ensure that this situation will never occur again. as for the disabled veterans national foundation, there are their four founding members have been separated from that organization and now they have released a statement as well saying this is very significant and positive step for the disabled veterans national
it made called gifts in kind like those coconut m&ms were useless to veterans. the abuses here really span the whole gamut of abuses you can see in a charitable organization and why this is such an interesting case because they were falsifying the value of the gifts in kind. they were sending things that no disabled veteran needed like m&ms and chef s hats. reporter: as a result of the settlement the dvmf founding board members including hits founder priscilla wilcox is being removed from the charity. its executive director has already left and the charity is banned from doing any business with quadriga art for three years and in addition to its huge fine and forgiven debt art and itself and president mark shuloff must disclose its fund-raising costs up front so would-be charities understand just how much of the donated
agreed to page huge fines and change the way it does business and possibly set a new and transmitent course for charities across the nation. attorney general eric snyderman calls it despicable and how it has deceived the mostly old and gullible out of hundreds of millions of dollars. some of these pleas put out brrrr quadriga were heart wrenching they were helping a poor veteran get a car and better life and we have now learned through our investigation in some cases the stories were totally fabricated that the foundation had never helped the veshterans that they used in their ads. reporter: quadriga pays $9.7 million dollars and forgive $13 million in debt still owed it by the national veterans disabled foundation. you re getting back to me. is there an interview? we have been chasing her for