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Ten fraudulent organizations dissolved after posing as charitable nonprofits

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Posted at 11:32 AM, Jul 01, 2021
and last updated 2021-07-01 11:32:57-04

LANSING, MI — Ten organizations posing as nonprofits were dissolved last week after Michigan Attorney General Dana Nessel and Orlene Hawks the director of the Michigan Department of Licensing and Regulatory Affairs (LARA) found no evidence of donations being made to any of these organizations.

The 10 organizations had names similar to legitimate nonprofits, like the American Cancer Society, American Cancer Foundation, and United Way. According to the attorney general, they appear to serve no charitable or commercial purpose.

Last year, the Department of Attorney General identified Ian Richard Hosang, Claudia Stephen, and Lincoln Palsey as involved with the fraudulent entities American Cancer Foundation (ACF) of Detroit, ACF of Grand Rapids, ACF of Lansing and ACF of Michigan; American Cancer Society (ACS) of Detroit and ACS of Michigan; American Red Cross (ARC) of Detroit and ARC of Michigan; United Way of Detroit and United Way of Michigan.

In January 2020, LARA’s Corporations Division discovered these organizations were not part of the national entity.

Last week, Ingham County Circuit Court Judge Clinton Canady III sided with the state and in an order that would dissolve the 10 fraudulent entities identified in the complaint.

“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.”

Elle Meyers

Elle Meyers

6:12 PM, Apr 12, 2021

State Capitol

Neighborhood Reporter

Elle Meyers

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