Jan 25, 2006 10:51 pm US/Central
Proposed Regulations On Car Donations Move Ahead
by Dave Savini
SPRINGFIELD, Ill. (CBS) ―
Some charities were left out in the cold as a result of a car donation scam involving thousands of vehicles worth millions of dollars, and now legislative action is moving ahead to ensure that this practice is halted.
On Wednesday, CBS 2 Investigator Dave Savini was called in to testify before a state legislative committee about his findings in the six-month investigation, "Good Gifts Gone Bad."
Our investigation found unlicensed car businesses and tow companies run by convicted criminals. Those operations were picking up donated cars, and they were alleged to have stiffed charities on payment for mre than 4,000 cars.
Late last year, state lawmakers and the Illinois attorney general's office began targeting them and other car donation handlers following our CBS 2 investigation.
Illinois State Rep. James Brosnahan (D-Oak Lawn) said, "This is a huge problem. It's very widespread."
Brosnahan is pushing for the legislation to reform car donation operations with state Rep. Randy Hultgren (R-Winfield) and the Illinois attorney general's office.
Lawmakers heard testimony and evidence from our investigation that left charities shocked and some donors in tears. One of those donors was Tracy Kazcynski, of Streamwood.
"I can't believe it! What do they do with this money?" Kaczynski said. "I just can't believe there are people out there. I mean, what do they do with this money?"
Kaczynski gave a car to charity after her mother died of Alzheimer's disease, but the charity never received a penny.
"I didn't think i was giving the car to a criminal," Kaczynski said.
Brosnahan said: "That type of thing is wrong. We've got to make sure that stops, and that we are protecting our citizens and we are also protecting our charities."
The law would ban felons and those convicted of misdemeanors involving financial crimes, like those seen in our investigation, from acting as car donation middlemen.
The car donation bill would also require full disclosure of who profits from each donation and how much of the proceeds go to charity. The car businesses would be required to report to the attorney general's office.
The bill was unanimously passed by the state House Judiciary Committee, and is now headed to a vote before the entire state House of Representatives.
One car donation operation that has gotten in trouble is O'Hare Auto Recycling, also known as O'Hare Kars, which Melrose Park police shut down last year for illegally operating without a business license.
The owners, the Zuccaro family, also were accused of not giving at least $10,000 in donation proceeds to designated charities. And William Zuccaro, who runs the business, is a convicted felon.
The Zuccaros acted as middlemen. Charities or companies working for charities hire them to tow, salvage, and turn over the proceeds of donated vehicles.
These middlemen have not been regulated, but they would be regulated if the new legislation were approved.
(© MMVI, CBS Broadcasting Inc. All Rights Reserved.)
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