Troubled N.J. Sandy Group Ordered to Stop Fundraising

A New Jersey charity that is being sued by the state over its failure to disburse hundreds of thousands of dollars ostensibly raised for Superstorm Sandy victims will stop collecting donations under a court agreement approved Thursday, The Star-Ledger of Newark writes.

Under the order $631,000 in cash gifts to the Hurricane Sandy Relief Foundation will be placed in an escrow account, and $400,000 in supplies now sitting in a warehouse must be distributed. The agreement also requires the charity’s founders, John Sandberg and Christina Terraccino, to pay back nearly $13,600 in contributions they are accused of spending on themselves.

The Sparta, N.J., couple has denied fraudulent intent and said disbursements were slowed because they were overwhelmed by the level of donations to the charity they launched within days of the October hurricane. They have removed claims on the foundation’s Web site that it had 501(c)(3) status, which it has not yet secured.