Ignoring new law, unregistered ‘faux charities’ keep soliciting in Las Vegas

faux charitiesThe telephone cold-caller to the New To Las Vegas world headquarters identified himself as “John.” He solicited a donation for Back Blue Lives PAC, which he described as a political action committee based in Alexandria, Va., supporting law enforcement.

“Our police officers are being defunded, demoralized and disrespected,” “John” sermonized in an impassioned pitch that sounded very much like it was coming from a charity rather than a political operative. “They put their lives on the line very day without support of many politicians … It’s time to say enough is enough. Can you help protect our police officers’ lives and rights?”

“John” was not a real person but a computer-generated voice using what is known as soundboard technology. That’s why I’m enclosing his name in quotation marks.

When I said I’d consider a contribution, “John” immediately professed his gratitude and switched me to “Mary,” another fake voice, so she could record details, like my name and address, to legally threaten me in the event I committed to a pledge and didn’t pay up. I told “Mary” that a new law in Nevada seemed to require any organization soliciting money for a law-enforcement cause to first register with the state and file a financial statement. I asked if Back Blue Lives PAC was so registered.

“That is a really great question,” Mary replied. “Let me get my supervisor.”

Her supervisor–a real person for once, but probably the person controlling the soundboard voices–came on the line. I repeated my question asking about a Nevada registration. “Okay,” she said.

Then–click. She hung up.

This is yet another example of what I call a “faux charity.” That’sa cause whose pitch on the phone sounds like it is raising money for a meritorious cause like fighting an illness or supporting law enforcement but is just a PAC spending almost all the receipts on fundraising and overhead, with organizers likely getting something on the side.

For some reason, I don’t think Back Blue Lives PAC is registered to solicit in Nevada, especially since the organization did not come up in the Nevada Secretary of State’s online PAC search or business entity search databases. And for some reason, I don’t think that Nevada regulators are going to do much about it.

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Will new law slow ‘faux charity’ pitches in Las Vegas and Nevada?

faux charity pitches in Las VegasSee update at end of story

A new Nevada law that took effect on October 1 might cut down on or even eliminate the large number of “faux charity” cold-calling money solicitations made in the Silver Silver. I say “might” because Nevada regulators don’t have the greatest track record of protecting the donating public by policing dodgy charitable appeals or, as I will point out again, even enforcing existing law in this area.

Regular visitors to this space are quite aware of what I mean by a faux charity. It is a cause whose pitch on the phone sounds like it is raising money for a meritorious cause like fighting an illness or supporting law enforcement. But in fact it’s a political action committee–often conveniently omitting the letters PAC when making the telephone pitch–run by shadowy folks that take in donations very little of which are then spent for campaign contributions, which isn’t a charitable purpose, either. Almost all the donations go to fundraising and overhead, with the organizers raking off undisclosed sums.

Previous Nevada law required most charitable organizations soliciting federally tax-deductible contributions in Nevada to register with the Nevada Secretary of State’s Office and make some disclosures. But contributions to PACs by law aren’t tax-deductible, so faux charity PACs didn’t fall under the charitable solicitation laws of Nevada–a giant loophole.

Nationally, most PACs are required to make publicly available disclosures to federal agencies, but they can be hard to find and analyze. Nevada has laws requiring state registration of certain PACs doing business in the state. But I have yet to see a Nevada registration of a faux charity PAC calling me, most of which list addresses in Washington, D.C., and other far-away places. Continue reading

Forbes 400 roster in Las Vegas falls to two

Forbes 400 roster in Las Vegas When I became New To Las Vegas five years ago, the annual Forbes 400 list of America’s richest folks contained nine individuals from the Sin City area. As it turned out, that was something of a peak year for the local count, as the basis for much of the vast wealth around Las Vegas–casinos, entertainment, hospitality, that kind of stuff–couldn’t keep up with fortunes being generated by big finance and technology brains elsewhere. Astonishingly, there now are more billionaires in the U.S. not on the Forbes list than on it.

The 40th edition of the Forbes 400 was just published. The Las Vegas Rich List contingent is now down to two. Continue reading

Las Vegas COVID-19 per-capita death rate still double that of U.S.

Las Vegas COVID-19 per-capita death rateWith 0.7% of the national population, Clark County, Nevada (home to Las Vegas and the New to Las Vegas world headquarters) had 1.4% of all the COVID-19 deaths in the country yesterday (29 of 2,026). That’s still double the national per-capita death rate.

In one respect this is good news. During the summer, the per-capita death rate in Clark County/Las Vegas was more than 10 times the national rate. But the local bump in my view is still too high for a place utterly dependent on tourism.

A story right now on the Las Vegas Review-Journal website cites the 29 local deaths, but doesn’t mention how bad that is compared to the entire nation. For some reason, aside from this space, this comparison is rarely mentioned in the Las Vegas media, and, of course, not by the Las Vegas Convention and Visitors Authority, the main local cheerleader for tourism.

Visitors, still be aware.

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