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National Children's Leukemia Foundation Accused Of Lying About Programs, Use Of Funds

NEW YORK (CBSNewYork) -- The Brooklyn-based National Children's Leukemia Foundation has been shut down.

As 1010 WINS' Al Jones reported, the organization has raised millions relying on professional fundraisers to deliver the hard-sell.

"Start listing some legitimate sounding programs like a bone marrow registry and people very often have a hard time saying no," said Deputy State Attorney General Yael Fuchs.

National Children's Leukemia Foundation Accused Of Lying About Programs, Use Of Fundraising

But Fuchs said the charity run by Zvi Shor spent most of the money on fundraising and salaries, and less than 1 percent on kids with leukemia.

"NCLS didn't make any dreams or wishes come true," Fuchs said.

Shor's attorney denied his client has done anything wrong, telling the New York Times the charity was run with the best intentions, Jones reported.

State Attorney General Eric Schneiderman said the organization allegedly raised money from donors across the country by touting non-existent and defunct programs.

In 2010 reports surfaced that Shor had a felony conviction for bank fraud and being a convicted felon meant, in many states, that he wasn't allowed to run a charity.

So he stepped down from the position and named long-time accountant Yehuda Gutwein as president. But Fuchs said Shor was the real mastermind behind it all.

The organization's president and vice president are alleged to have breached their duties to the organization and to have aided and abetted Shor in running the organization; the auditor is accused of making false filings, the attorney general's office said.

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