Fake cellphone recycling charity busted

Totally sleazy: a couple in Oklahoma City have been charged with running a cellphone recycling scam that involved collecting old handsets on behalf of a charity called Save a Life Give a Phone Foundation that supposedly benefited battered women's shelters, domestic violence victims, the elderly, and the disabled. They did a damn good job convincing people to hand over their cellphones, too bad only 300 of the 100,000 handsets they collected ended up being donated to those in need—apparently finding only 300 needy souls, they sold the other 99,700 for a cool $1.2 million (that's almost pure profit, since people gave them the phones for free). They're now facing 11 counts of violating the Oklahoma Solicitation of Charitable Contributions Act, one charge of violating the Oklahoma Securities Act, and one felony racketeering charge. Of course, the most frustrating thing about all this is that it's going to make it more difficult for legit charities to convince people to recycle their old handsets.

[Via Slashphone]

[Mike @ Dec 19th 2005 12:12AM]

Is that an extra nine?

[Rus @ Dec 19th 2005 12:12AM]

What a bunch of cell outs!

[Phirefenix @ Dec 19th 2005 12:12AM]

I'd like to make some extra bank myself, but the charity they were taking away from makes this quite tasteless in my book.

[Justin Nolan @ Dec 19th 2005 12:12AM]

Who do you sell 100,000 used cell phones too? That could be quite a task.

[Rus @ Dec 19th 2005 12:12AM]

eBay and flea markets. I once won an auction lot of cell phones and decided to carry them out to the flea market when I had my moving sale. I had about 30 phones with AC adapters and got almost $400 for them. I've also resold all my old cellphones on eBay and gotten almost $100 each for them.

Latinos in particular love them.

[Wonderkid @ Dec 19th 2005 12:12AM]

This kind of scam is widespread in the US. I lived in Northern California for 10 years and often donated my old good to United Way who were supposed to provide for several charities. Just before I returned to the UK, it was reported that one or two of the directors of UW has embezzled millions of dollars, effectively neutralizing all the 'profit' they had made and wasting the donations, mine included. I was furious and upset. And as is starting to happen in the UK now, in the US people will start or join non-profits in order to benefit from the (sometimes) significant tax free directory's sallaries. Whatever happened to genuine 'charity'? Working for no personal gain?

[nabohi @ Dec 19th 2005 12:12AM]

The question is what they have done with the profit from selling the phones.
I donate clothes on a regular basis to the red cross. I ever thought that they give the clothes directly to people who need it (third world, homeless, ...), until I saw in a tv report that they sell most of the clothes to second hand shops if the clothes are in good condition.
It makes more sense to give an African child food or water instead of winter clothes.

[Jason @ Dec 19th 2005 12:12AM]

Well, they may have been charged with this but they apparently haven't been stopped. The site is still running, ready to convince some unknowing person to donate.

http://www.savealifegiveaphone.org

[lupinstel @ Dec 19th 2005 12:12AM]

Or if you want to sell your own phone try here: http://www.cellforcash.com/

[spiegal @ Dec 19th 2005 12:12AM]

I know these people personally. It is unfortunate to see what GREED can do to a person and how that can hurt others as well. I believe that those who really suffer from this are those people who were supposed to receive those phones. they will not have the use in case an emergency does come up. I would also like to remind everyone that although there are some who abuse the charity and kindness of others...there are those who do not. most of the United Way volunteers are stand up people who are in it only to HELP those in need. Please do not let the actions of a few alter your willingness to help your neighbor, whether you know them or not. thank you.

[nunya @ Dec 19th 2005 12:12AM]

I know these people personally as well and can tell you they did NOTHING wrong. He hired some people who were criminals because he believes in giving people a second chance, he himself had a second chance. These people he hired has a LOOONG list of CONVICTIONS for obtaining money fraudulently and they stole from him. The accountant was writing checks to herself illegally, believe me these people DID NOT have 1.2 million dollars in the bank. They gave to many charities and they have NOT BEEN CONVICTED so stop acting like they have been. anyone can bring charges against a person but does not mean they commited the crime. Innocent until PROVEN guilty!! Not to mention CELL PHONES FOR LIFE in ardmore Ok, they are the ones that have a LOOOONG list of convictions, go to www.oscn.net and look up Bill Hulsey. It is information free to the public. Cell Phones for life stated in january of 2004 that save a life was no longer in business but it was a year and a half before save a life closed down..The owners of cell for phones for life new save a life was not out of business since they continued working for save a life until the day it closed. They are the ones who are fraudulent, they are the ones who stole from save a life and they are the ones who should be on trial not Domingo and his wife.

[nm @ Dec 19th 2005 12:12AM]

what happened to innocent until proven guilty.. it appears that we are all to quick to judge .. The web site for save a life in not in working conditions .. the # is no good neither is the address listed... I doubt that thet are getting any donations in that manner .. it appears to me that they were doing a pretty good thing the idea of helping people by old cell phones is great... I do have to say that cell phones for life appears to be doing the same exact thing that save a life give a phone was doing but it appears that they have been operating as a non profit for over 2 years but just got the non profit status this year ,,, that to me seems weird.. may be they should be checked out just in case ..

[alino @ Dec 19th 2005 12:12AM]

Check this site out
If you are looking to recycle cell phones and make sure you know where you $ is going this would be your best bet.....
They pay for all call phones new or decades old
www.its2am.com

[Tim Smith @ Dec 19th 2005 12:12AM]

Good post. This may appear self-serving but what you guys said above is EXACTLY why we put up a website that compares cell phone buyers. Some are reputable. Some are downright scam artists. My wife and I lost $100 worth of phones to these guys... not again though! We're trying to help others who wouldn't know otherwise! www.whobuyscellphones.com

[Tim Smith @ Dec 19th 2005 12:12AM]

To clarify... we did not lose $100 to the above mentioned site, it was a different one.