Fund-Raiser Forfeits City License

A fund-raising business that has allegedly cashed checks for charities that don’t exist and real charities that it did not represent has forfeited its city license, a Los Angeles official said Wednesday.

Robert D. Burns, general manager of the Los Angeles Social Service Department, said Thomas Galambos, president and owner of Valley Fundraisers, failed to appeal a March 25 notice of intention to revoke Galambos’ license.

Loss of the license prohibits Galambos from soliciting funds on behalf of any charities in the city of Los Angeles.

Neither Galambos nor his attorney, Elliott Kajan, could be reached Wednesday.

The city’s action against Valley Fundraisers was prompted by a Times’ article disclosing that the firm cashed dozens of checks made out to well-known organizations, such as Easter Seals and March of Dimes, which had not authorized the firm to solicit or collect for them.

According to state records, Valley Fundraisers has taken in more than $2.6 million over the past four years, and has contracts with three nonprofit organizations that allow the firm to keep between 85% and 90% of its revenues.

Immediately after the article appeared, Burns ordered Galambos to produce all the company’s financial records for an audit. When Galambos failed to respond to that order, Burns said, he began proceedings to revoke his license.

Burns said Galambos cannot apply for a new license without first submitting the firm’s books and records.

Valley Fundraisers’ headquarters, on Alameda Avenue in Burbank, closed shortly after the article in The Times appeared, and the phone was disconnected.

The Galambos operation also remains under a parallel investigation by the state attorney general’s office. Deputy Atty. Gen. James Cordi, who is heading the state’s investigation, declined comment on its progress.