Jay Katari
FACTS
A MULTI-MILLION DOLLAR SCAM.
Cancer Free America Foundation, Inc. (CFAF) a Florida non-profit. The company was incorporated on 7/11/05. Jay Katari is the director, there is no board of directors, has never filed for a 501c3. CFAF collects used clothing and shoes through the use of metal charity bins placed in various parking lots and vacant lots. There are approximately two thousand bins with the CFAF name asking for donations in Florida, Georgia, Virginia, Maryland, Pennsylvania, Connecticut and Massachusetts. There may be other states. All the clothing is collected and sold by for profit companies under the control of Katari. In Connecticut and Massachusetts Katari sell the donations through New England Recycling Solutions Inc. In PA Keystone Clothing Recyclers Inc.
Shoes for the Cure, Inc. collects shoes using small bins designed to accept shoes and sneakers. Theses are in Florida and North Carolina where he has been dinied non-profit satus. Florida Shoe Recyclers, LLC sells the donated shoes for profit.
Katari operates MEGA Thrift Store in Greensboro NC, a for profit used clothing and thrift store.
Katari claimed he sold 68 loads (53’ trailers) in the month of May 2008, each approx. 40,000 lb. Each load produces approx. $12,000.00 (.30 per lb.) $816,000.00. These loads are sold to large grading warehouses in Texas.
After Katari sells the clothing a token amount is given to his non-profits. In 2006 less than $10,000 was donated to charities. In 2007 less than $48,000 was donated according to their FL filings. It appears that CFAF is a good charity because they donate all the funds Katari desides to give. Millions of dollars where raised though the goodwill of the public and a small fraction was donated.
CANCER FREE AMERICA FOUNDATION, INC. (NON-PROFIT)
SHOES FOR THE CURE, INC. (NON-PROFIT)
PRESIDENTIAL CLOTHING RECYCLERS, INC.
CAPITOL CLOTHING RECYCLERS, INC.
MIDWEST CLOTHING RECYCLERS, INC.
KEYSTONE CLOTHING RECYCLERS, LLC
FLORIDA SHOE RECYCLERS, LLC
NEW ENGLAND RECYCLING SOLUTIONS, INC.
CAROLINA'S THRIFT HOLDINGS, LLC
D.A.R.E.-NJ, a nonprofit drug abuse prevention organization, has a few hundred bins around the state. Stickers on the bins clearly say they are part of a "'textile recycling program" and the owners pay D.A.R.E. an annual fee to use their red logo. D.A.R.E.-NJ receives $700 a year per bin from New York-based textile recycler Northeastern Import/Export in exchange for the contents of the bins. Last year, D.A.R.E. made $285,000 from its bins, according to its IRS filings. (CFAF would donate $1,400,000 not $40,000)
What is a:
Non-profit - As applied to any private entity, no part of the net earnings of such entity accrues or may lawfully accrue to the benefit of any private shareholder or individual.
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9 comments:
I am disgusted that a person would write such libel about a wonderful organization like CFAF. I am a cancer survivor and deeply appreciate all the help CFAF gives the patient and family services programs at my hospital.
I looked on the website for Cancer Free America and saw all the letters from different cancer centers, thanking them for the monthly donations.
I don't care how much the clothing is sold for I just care about my friends and family trying to cope with having cancer.
Keep up the good work Cancer Free America!!!
Don't let one bad apple spoil the bunch.
You can call it libel but it is the truth. Of course Jay Katari could not get away with his scam if he didn't pay any money to these hospitals.
The cancer survivor misses the whole point of this post. It's not that there's no money going to these places. There is. The interesting or depressing thing is how much money Jay Katari makes off of the goodwill of people. He didn't start this organization to help cancer patients or their families. He started it to get more clothes to sell so he can make more money. You see, his father was a used clothing dealer for many years and a shady one at that. Their family's reputation in the used clothing industry is poor. They have a penchent for skipping out on paying their bills. Apparently his father taught him that lying is okay. Just take a look at FL's public records. You will see many lawsuits filed against the Katari family. The fact of the matter lies in that Jay Katari makes a lot of money by
doing this Cancer Free gig. Then he hides using an elaborate tax scheme. You see, his wife is a lawyer (disbarred in New Jersey) and it seems that she's been able to help him hide money trail.
If Jay Katari was asked to produce a fiancial statement with all of his activites you would see a slew of companies. Some have losses, some have profits. If you "fix" it properly, then you can skip out on paying taxes. How patriotic. He figured out another way to skip on paying taxes. Start a charity. Well, North Carolina figured out what he was doing and denied his application. I sure hope that Jay is not teaching his 3 kids his lying ways. From the figures I've seen, I say he gives about 1% of his profits to these cancer places. 99% goes into his pocket. Trust me, he'll need the money for lawyers when the party comes to a crashing halt. His wife and shady neighbors won't be able to help because they're in on the scam as well. I feel sorry for his kids. I guess serendipity will be when someone close to him gets cancer. Karma has a way of coming around. When you make a deal with the devil, you will have to pay.
By the way "survivor",Why would a charity black-out the dollar amonuts of their donations to these hospitals?
Seems to me that someone doesn't want the public to know how much money is donated because people like me know the truth.
If you're ever in Boca Raton, please stop by and see what kind of spread Jay, Kimberly, and the kids live in. The only "charity" benefitting from their "work" is themselves. Sickening.
http://abclocal.go.com/wtvd/story?section=news/local&id=6102382
Please watch this ABC news report from Raleigh, NC. It details the scam. Duke University Hospital declines to take money from these guys. Now the report is about Cancer Free Carolina. It's called that because this is Katari's former partner in crime. Different name but same scam. Enjoy.
Cancer Survivor must be Katari himself, if not you should check with Give Well or Guide Star. They will explain how to check out a charity, and CFAF will fail the test. Thanks researcher, NC is run by Tony Cox, he gives even less, last I knew Cox was selling Katari 3 loads a month at .14 (Katari leased the bins to Cox for a dollar a year) and Katari was selling at about .28 which mean Katari profit about $14,000 a month from NC and Cox makes a few small donations to keep his scam going. Same stickers on bins except name change. Time will tell who's the true bad apple.
Anyone dumb enough to beleive the scam should save us all the headache and call the attorney general in your state and ask if they are registered. then post.
survivor, is J katari himself.
I am a licensed private investigator and who ever made this blog is dead wrong Mr. Katari is a wonderful person that has helped so many lives.
You people do not understand the cost of doing business or how to run a business. Mr. Katari is part of the solution not the problem, he takes unwanted used items that would normally be thrown away in landfills and turns it into money for charities and he employs many people to get the job done. In a day an age where it is difficult to even get a job or help Mr. Katari is there. He is a solid guy and the person who made this blog is a jealous person with an ax to grind. If the person who wrote this blog is so squeaky clean give me your name so I can see what you are about. Like I said before I am a licensed private investigator and I looked into your claims and you are full of it. Mr. Katari does not have that level of production you claim. He gives all he can after employing the people to get the job done. Call me at 866-640-1010 if you are real and have real information instead of this slander blog.
Thanks for sharing this with us! Some really amazing features.
501 c3
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