Gotcha on Tape: Fundraising Fraud

Nov. 3, 2003 — -- Americans give about $250 billion a year to charity and with all that money, there's plenty of room for fraud.

They're called "badge scams," charities that play on our desire to help the people who help us -- police organizations, fire departments and rescue companies.

What most people don't realize is that there is no law requiring any particular percentage of your donation to be used for the good cause you want to support and often, much of it isn't.

When fundraisers for the American Deputy Sheriffs Association phoned Lisa Heddens and Bob Brammer, they called the wrong people.

"Some sort of gut instinct said something just wasn't right," Heddens, an Iowa state legislator, said.

"I don't think they knew who they were calling," said Brammer, who is a spokesman for the Iowa attorney general.

Brammer recorded one of the recruiting calls and let ABC News hear it.

"There's no emergencies. You can put your hands down, too," the fundraiser is heard, laughing.

The telemarketer might not have been laughing if he'd known the identity of Brammer and Heddens.

"I kept pushing to say now I want some more information, and he was not willing to provide that," Heddens said.

When Heddens asked where the organization was located, the fundraiser told her that donations were mailed to Des Moines, but she persisted.

"We do all of the calling from Wisconsin," the fundraiser finally admitted.

Brammer asked at least nine times how much of his donation would go toward the charity.

"I recall asking repeatedly what share of my donation is going to be used for the charitable purpose," Brammer said. "And you really can't get a straight answer to that question."