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Tennessee will join 24 states in settlement against veterans charity

The organization was accused of scamming some $15 million from people in at least 24 states, but spent less than 20 percent on charitable organizations.

Tennessee will join two dozen other states in a settlement of a legal dispute that will shutter a veterans charity that scammed millions from donors, including Tennessee.

Secretary of State Tre Hargett and Attorney General Herbert Slatery both said in an announcement Monday that they were glad to see VietNow National Headquarters, Inc., an Illinois nonprofit corporation, close and its leaders forced to resign.

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“I hope this will serve as a warning to organizations that attempt to prey on the giving nature of Tennesseans,” Hargett said in the release.

The organization was accused of scamming some $15 million from people in at least 24 states, but spent less than 20 percent on charitable organizations. In it's most recent financial statement, the organization reported raising $2 million, but spent less than 5 percent on charities, the release said.

The release did not say how many in Tennessee were affected or how much money from donors came from Tennessee.

Adam Ghassemi, spokesman for Hargett's office, said the office had no brick-and-mortar presence in Tennessee to the department's knowledge, but the organization did have reading scripts on file with the state.

"There were definitely solicitations going on (in Tennessee)," he said.

The organization is also known as VeteransNow.

The organization is based in Rockford, Ill., according to its Charity Navigator profile, which rates charitable organizations.

Also included in the settlement is the forced resignations of the organization's top leaders. Remaining funds from the organization will be donated to Fisher House and Operation Homefront.

The discovery was first reported by the Chicago Tribune, which led to the investigations by attorneys general in multiple states.

Jake Lowary covers veterans and military affairs for the USA Today Network. Reach him at jlowary@tennessean.com or follow him on Twitter @JakeLowary.

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