April 22, 1999 | Read Time: 1 minute
The Multiple Sclerosis Association of America has agreed to review the way it raises money and make changes in its overall operations to settle a lawsuit filed by the Attorney General of New Jersey.
The state, which began investigating the charity last year, had accused the organization of approving fraudulent fund-raising appeals made by professional solicitors. For example, the state said fund raisers told potential donors that 100 per cent of their contributions would go to the charity, even though 70 per cent of all money raised ended up being paid back to the professional solicitors.
In an agreement worked out with the state this month, the charity promised to make numerous improvements, including reviewing all of its fund-raising activities and making any changes necessary to bring them into compliance with the law. The charity has also severed all ties with its two top officers — John Hodson, Sr., the founder, and his son, John Hodson, Jr.
As part of the settlement, the charity is suing John Hodson, Jr., the former vice-president of the organization, to recover $355,000 or more in funds that the charity alleges were misused or misappropriated.
Doug Franklin, who last month was hired as the charity’s new executive director, said the organization is in the process of a major overhaul. “We have already made, and continue to make, major changes in the way M.S.A.A. is organized, controlled, and operated,” he said.
Neither Mr. Hodson, nor their lawyers, could be reached for comment.
The organization is not affiliated with the much larger and better-known National Multiple Sclerosis Society, in New York.
