§ 172-D — Prohibited activity

§ 172-d. Prohibited activity. Except as exempted pursuant to\nsubdivision one of section one hundred seventy-two-a of this article, in\naddition to other violations of this article no person shall:\n 1. Make any material statement which is untrue in an application for\nregistration, registration statement, a claim of exemption, financial\nreport or any other forms or documents required to be filed or filed\npursuant to this article; or fail to disclose a material fact in an\napplication for registration, registration statement, claim of\nexemption, financial report or any other forms or documents required to\nbe filed or filed pursuant to this article; or\n 2. Engage in any fraudulent or illegal act, device, scheme, artifice\nto defraud or for obtaining money or property by means of a false\npretense, representation or promise, transaction or enterprise in\nconnection with any solicitation or with the registration, reporting and\ndisclosure provisions of this article. The term "fraud" or "fraudulent"\nas used herein shall include those acts which may be characterized as\nmisleading or deceptive including but not limited to those acts covered\nby the term "fraud" or "fraudulent" under subdivision twelve of section\nsixty-three of this chapter. To establish fraud neither intent to\ndefraud nor injury need to be shown; or\n 3. Use or intend to use false or materially misleading advertising or\npromotional material in connection with any solicitation; or\n 4. Fail to apply contributions in a manner substantially consistent\nwith the solicitation or the registration statement of the charitable\norganization or the purposes expressed therein; or\n 5. Enter into any contract or agreement with or otherwise employ or\nengage any professional fund raiser, fund raising counsel or\nprofessional solicitor required to be registered pursuant to this\narticle unless such professional fund raiser, fund raising counsel or\nprofessional solicitor has provided to such person a statement, signed\nunder penalties for perjury, that it is registered and in compliance\nwith all filing requirements of this article; or\n 6. Enter into any contract or agreement, employment or engagement to\nraise funds or conduct any fund raising activities for any charitable\norganization required to be registered pursuant to this article unless\nsuch charitable organization is registered and in compliance with all\nfiling requirements of this article; or\n 7. Repeatedly and wilfully fail to file as required by this article\nany fund-raising contract, closing statement or report or other form or\ndocument; or\n 8. Fail to respond or comply within sixty days with any cease and\ndesist order of the attorney general; or\n 9. Represent in any manner that registration constitutes an\nendorsement or approval by the state or the attorney general; or\n 10. Solicit for a charitable purpose or engage in any other fund\nraising activities without being a registered charitable organization in\ncompliance with all filing requirements of this article, if required to\nbe registered, or having a written contract or agreement with a\ncharitable organization or registered charitable organization if\nrequired to be registered, authorizing solicitation on its behalf; or\n 11. Continue soliciting on behalf of a charitable organization more\nthan fifteen days after the cancellation in accordance with subdivision\nsix of section one hundred seventy-four-a of this article; or\n 12. Act as or enter any contract or other agreement with a charitable\norganization as a professional fund raiser, fund raising counsel, or\nprofessional solicitor without having registered and being in compliance\nwith all filing and disclosure requirements of this article; or\n 13. Fail to maintain books and records as required by this article or\nfail to produce to the attorney general any such books and records\nwithin fifteen days of receiving, by certified mail, a request for such\nbooks and records; or\n 14. Fail to discontinue solicitation immediately or to register\npursuant to this article within fifteen days after the attorney general\nhas given notice pursuant to subdivision two of section one hundred\nseventy-five of this article of violation of subdivision one, two, or\nthree of section one hundred seventy-four of this article; or\n 15. Fail to provide a charitable organization with an accurate\naccounting of a sale advertised for its benefit as prescribed by\nsubdivision three of section one hundred seventy-three-a of this\narticle; or\n 16. Knowingly use in the course of soliciting contributions for or on\nbehalf of a charitable organization a name, symbol, or other mark so\nclosely related or similar to that used by another established\ncharitable organization that the use thereof would tend to confuse or\nmislead the public; or\n 17. Solicit contributions in a manner or with words which are coercive\nas such term is defined pursuant to section 135.65 of the penal law; or\n 18. Vote or use personal influence as an officer or member of the\nboard of directors of a charitable organization, a majority of whose\nmembers are professional fund raisers or their designees on matters on\nwhich such officer or member has a financial or material conflicting\ninterest; or\n 19. Include in any solicitation a statement that the financial report\nof a charitable organization or professional fund raiser is on file with\nthe attorney general unless the charitable organization or professional\nfund raiser has complied with all filing requirements pursuant to this\narticle and article eight of the estates, powers and trusts law, to the\nextent also applicable; or\n 20. Use in any solicitation a New York state address, including a New\nYork state return address unless:\n (a) the charitable organization maintains and staffs an office at that\naddress; or\n (b) immediately proximate to the New York address, both the address of\nthe charitable organization's actual headquarters and the fact that the\nNew York address is a "mail drop", using this or a substantially similar\nterm that clearly conveys the message that the New York address is that\nof a mail handling facility; or\n 21. State or imply that a charitable organization conducts any\nactivities in New York and/or benefits New York state residents unless\nit conducts such activities and/or provides such benefits.\n