April 19, 2001 | Read Time: 1 minute
By HARVY LIPMAN
The Multiple Sclerosis Association of America and two of its former officers have agreed to pay the state of New Jersey $225,000 to settle a lawsuit brought by the state attorney general’s Division of Consumer Affairs.
The attorney general had accused the association, its founder and former president, John Hodson, and its former vice president, John Hodson Jr., of diverting donations to pay for personal expenses of the organization’s officers, as well as misleading prospective donors about its programs and filing false financial reports with the state.
Under the terms of the settlement, the charity, which is based in Cherry Hill, N.J., agreed to maintain greater control over its fund-raising activities to make sure potential donors are provided with accurate information.
The settlement also prohibits the Hodsons from being affiliated with any charity in New Jersey. The settlement also states that all the defendants deny any wrongdoing.
Andrea Borkowski, the association’s director of communications, says the charity’s president, Douglas Franklin, has already put in place many of the changes called for in the settlement in the two years he has been in the job.
Mr. Franklin took over as the charity’s chief executive soon after the state filed its lawsuit. Ms. Borkowski says he has hired a new management team and a new auditing firm, and has issued accounting standards for the organization.
