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Gruber Steals from Those Who Served
Indianapolis, IN – In a heart-wrenching case of betrayal, Scott M. Gruber, 40, was sentenced to four years in federal prison by U.S. District Judge Sarah Evans Barker for his role in stealing hundreds of thousands of dollars intended for local veterans. Gruber’s actions are a stark reminder of the sacrifices made by those who serve.
Gruber established two professional fundraising organizations, Independent Promotions and Reliant Event Management, to solicit funds for local veteran’s charities. He hired individuals to falsely represent themselves as volunteers and often as veterans to solicit funds from patrons outside local retail outlets and Monument Circle. The solicitors were schooled to tell patrons that 100% of the proceeds went to charities that support veterans, when in fact, very little of the money ever made it to the intended veterans.
Between 2010 and 2012, Gruber and his associates collected over $550,000 for the Purple Hearts Veterans Foundation (PHVF) and $575,000 for Service Connected Disabled Veterans of America (SDVA). Only eight percent of the funds from PHVF ever made it to the veteran’s charity, and less than one percent ($4500) of the money raised for SDVA made it to any veteran. In total, Gruber raised over $1,045,651, with very little making it to the various charities.
According to Assistant United States Attorney James M. Warden, who prosecuted the case for the government, there were two sets of victims in the case: the contributors and the veterans the money was intended to support.
Gruber must pay $365,750 in restitution, payable to the American Red Cross, and serve three years of supervised release after his sentence at the U.S. Bureau of Prisons. The investigation was conducted by the Internal Revenue Service, Criminal Investigation Division, and the Indiana State Police.
Gruber’s actions are a slap in the face to those who have served their country. The Grimy Times condemns such egregious behavior and hopes that this sentence serves as a deterrent to others who would seek to take advantage of those who have given so much.
The case serves as a reminder of the importance of verifying the legitimacy of charitable organizations and their fundraising efforts.
Key Facts
- State: Indiana
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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