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New York attorney general reaches $25 million settlement with veterans charity, fundraisers

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NEW YORK, N.Y. - New York state's attorney general says a direct-mail fundraising company that sent out misleading solicitations on behalf of a disabled-veterans charity will pay $9.7 million in damages as part of a $24.6 million settlement.

Quadriga Art says it "made mistakes" in how it raised money for the charity.

The Washington, D.C.-based Disabled Veterans National Foundation will re-organize its board and reform its practices as its part of the settlement.

Attorney General Eric Schneiderman (SHNEYE'-dur-muhn) is expected to discuss the agreement on Tuesday. An investigation by his office showed Quadriga Art raised millions of dollars for the charity through misleading mailings, with most of the money going to pay Quadriga.

The charity says the agreement is a "significant and positive step" that will help it improve services.

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