877 Kars For Kids has been accused of, among other things, being involved in a Ponzi Scheme. Not there is any surprise to people with half a brain, but their parent company Oorah, has been criticized and sued for making millions of dollars through 877 Kars for Kids, with very little, if any going to the Jewish youth organizations which are supposed to benefit from KFK:
Credit Charitywatch.org:
"Since 2010 when CharityWatch last wrote about Kars4Kids and the more than $100,000 it paid related to misleading advertising claims in Oregon and Pennsylvania, news reports have identified Kars4Kids and/or Oorah (parent company) in connection with additional cases involving legal accusations or other questionable financial dealings. These include getting caught up as victims in an alleged Ponzi scheme related to speculating on real estate development; Oorah losing a federal lawsuit over more than $300,000 in allegedly unpaid scholarship funds; an ongoing payment dispute with the Young Israel of Eltingville synagogue that includes tax fraud allegations against Oorah; and Kars4Kids paying to settle claims of trademark infringement.
Especially costly were Kars4Kids’ and Oorah’s real estate investments in an alleged Ponzi scheme in which they were victimized and lost more than a combined $7.6 million in 2009 and 2010. To put the $7.6 million in context, Oorah’s total cash spending on Jewish youth programs was approximately $12.2 million over that same period. The real estate developer behind the alleged investment scheme, which reportedly caused $200 million in total losses, was sentenced to 22 years in prison. Even though Kars4Kids and Oorah were victims, some donors may seriously question the judgment of Eliyohu Mintz, the principal officer of Kars4Kids and Oorah, and their other respective board members in deciding to risk donated charitable funds on real estate speculation."