what did quadriga art say?eased the donor base by 700,000 people but even quadriga art admitted the fund-raising efforts did not prove as financially viable as the client had hoped. quadriga art says it too now wants to end the contract. and despite brickmill and the parent company quadriga art getting paid more than $18 million, quadriga said it lost money. >> we have to ask why is this going on, who's benefiting here other than the fund-raising company. >> drew griffin joins me now and the president of the charity watchdog group. i find this unbelievable. drew, i mean, i applaud your reporting on this because this is outrageous. if people knew these organizations, first of all, that first organization has not sent any money directly to disabled veterans and this one how much did that guy say, 81 cents on the dollar goes to the fund-raising organization? >> that's absolutely right. and that's what is heart breaking here because behind all these donations are americans who really want to help these veterans. th

quadriga arts is basically paid to build mailing groups and that's where the money trail took drew. they have more than 500 charities. so let's be clear here. the money trail leads from unsuspecting wallets of concerned americans, good people like you, who donate money to the dvnf straight to the bottom line of a fund-raising company, the companies of quadriga arts and subsidiaries. but dvnf is now being looked at because of the tax-exempt status. and the words of senate baucus, quote, our veterans should never be use as pawns in a scheme to exploit the taxpayers. dvnf needs to show it's genuinely helping veterans and playing by the rules. senator baucus is joining us this. this was initiated by a republican committee member and with us tonight is drew griffin. what your goal with this investigation? >> i don't want retired schoolteachers or any other good americans to be duped by these organizations into giving money thinking it will go to disabled vets when in fact it's not at all. it's going to pad the pockets of some scam artists. i want to stop this stuff. >> what concerns you

quadriga is a private company. you know, maybe these -- the woman you interviewed, she's a volunteer and the people who actually are involved with this group are sort of good-hearted, if empty-headed people who want to help veterans. quadriga knows exactly what it's doing. it's making a ton of money, of profit, off of these contributions. >> it's also fascinating to hear that woman to say, a, she's a volunteer on the board and they didn't know it was going to take off. i mean the people -- that other woman that slammed the door in your face and has avoided your questions for two years, i mean they seem like not ready for primetime players. this quadriga, as jeff said, certainly seems to know what they're doing. these other folks, i mean maybe they are thinking they're doing some good, but $56 million they have raised and it's not going directly to veterans. it just boggles my mind. >> reporter: right. and i think jeffrey's point is correct. these are not -- these are not bad people that are slamming doors in our fa

it went to their chief fund-raising company, this private company named quadriga arts.we're having trouble dealing with or finding answers to is why quadriga is basically charging this charity more than a dollar to raise a dollar. that's basically where we're at. and quadriga, you know, they raise funds -- they admittedly raise funds for more than 500 charities. so we would like to find out is this the same pattern at all and these charities that quadriga is involved with? so we are trying to follow the money that way, but so far we have gotten shut doors from quadriga arts as well. >> well, thank you so much. >>> back page.com is not backing down. tonight, the classified ads when sites is ignoring calls to shut down the adult section arguing that it's a tool for people to sell kids for sex. keeping them honest, next. the top academic performers surprised some people. so did the country that came in 17th place. let's raise the bar and elevate our academic standards. let's do what's best for our students-by investing in our teachers. let's solve this. with less chronic o

it went to their chief fund-raising company, this private company named quadriga arts.t we're having trouble dealing with or finding answers to is why quadriga is basically charging this charity more than a dollar to raise a dollar. that's basically where we're at. and quadriga, you know, they raise funds -- they admittedly raise funds for more than 500 charities. so we would like to find out is this the same pattern at all and these charities that quadriga is involved with? so we are trying to follow the money that way, but so far we have gotten shut doors from quadriga arts as well. >> well, thank you so much. >>> back page.com is not backing down. tonight, the classified ads when sites is ignoring calls to shut down the adult section arguing that it's a tool for people to sell kids for sex. keeping them honest, next. [ male announcer ] if you think tylenol is the pain reliever orthopedic doctors recommend most for arthritis pain, think again. and take aleve. it's the one doctors recommend most for arthritis pain. two pills can last all day. ♪ of single mile credit ca

>> reporter: it's actually going directly to a company named quadriga art, which we've been reporting, anderson, is one of the largest groups that helps support these fund-raising outfits, these charity outfits across the nation, across the world. 500 charities, quadriga boasts. they sent a statement saying, yeah, this is pretty much legit. let me read you, this was part of the campaign. the disabled veterans national foundation approached us with a unique mission that we believed in. they lacked a donor file and a name recognition and indicated that they needed a significant and accelerated public awareness and education initiative. given the large number of wounded soldiers returning home amidst insufficient resources to support them. so they say given their objective, anderson, the client knowingly chose an aggressive direct mail strategy that resulted in an expected high cost in the beginning of the program. that program has been going on for three years. it's raised $56 million in private donations and as far as we can tell, all of that money went to pay for a mailing list. i bro

quadriga is a private company that raises money for more than 500 charities and nonprofits worldwide.o cnn, a company spokesman said quote, it does not discuss specific client relationships. but that spokesman did say quadriga at times chooses to invest money in partnerships with non-profit organizations. to date they told cnn it's actually lost $7 million investing in veteran non-profit organizations. that may be true, but in the case of the disabled veterans national foundation, according to tax documents, not only did all the nearly $56 million in cash donations go to fund-raising costs, but the dvnf still owes its foundation another $5 million. they reported on tax returns it's costing more than a dollar to raise a dollar, despite the fact that the fund-raiser says it wins its fair share of business because it's a low-cost provider in the non-profit marketplace. >> they print these solicitations and send them out to millions of people. they don't care about the percentage return. all they care about is how much money they get from it. >> drew, this is unbelievable. how does this c

>> the direct mail company that actually gets the donations is called quadriga arts and on its websitesays it raises funds for more than 500 charities and nonprofits. we got an e-mail that says the company -- it says it will not discuss any specific client relationships. we couldn't even get a phone call from the company or its lawyers. we did get angry calls from a p.r. guy they hired. in the end we couldn't get any interviews or any good answers. >> drew griffin, thanks. that's incredible. we invite precilla wilkewitz any day, any time, you have some questions to answer. we received this from the disabled veterans national foundation. over the past four years the disabled veterans national have changed the lives of thousands of veterans. we help prevent evictions and homelessness and we help those with post-traumatic stress disorder and traumatic brain injury. we are trying to bring hope to those who bravely served or country. again, we offer an invitation, any time, we'll be there. >>> a shocking videotape played in court. police officers are allegedly beating a homeless man who lat

and quadriga raise funds for 500 charities. we want to find out is this the same pattern for all the charities they are involved with. we are trying to follow the money that way but we have got shut doors from there as well. >> drew griffin, appreciate it. >>> the john edwards trial is entering a new phase. prosecutors resting their case today. what we can expect as the defense team takes over, next. the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. answers. in that time there've been some good days. and some difficult ones. but, through it all, we've persevered, supporting some of the biggest ideas in modern history. so why should our anniversary matter to you? because for 200 years, we've been helping ideas move from ambition to achievement. and the next great idea could be yours. ♪ the calcium they take because they don't take it with food. switch to citracal maximum plus d. it's the only calcium supplement that can be taken with or without food. that's why m

>> reporter: the direct mail company that actually gets those donations is called quadriga arts, andn its website it says it raises funds for more than 500 charities and nonprofits. we got an e-mail that says the company will not discuss any specific client relationships. we could not even get a phone call from the company or its lawye lawyers. we did get angry e-mails from a pr guy they hired, and in the end, we couldn't get any interviews or any real good answers. >> drew griffin, thanks. it's incredible. we invite priscilla wilkewitz any day, any time to be on this show. we'll come to you. you have some questions to answer. just before we went on air, we received this statement from the disabled veterans national foundation, as they call themselves. "over the past years, the disabled veterans national foundation has changed the livs more than 80,000 servicemen and women. we equip our veterans with the tools they need to find jobs, we help prevent evictions and hopelessness, and we care for those suffering from the visible and invisible wupds of war, including post traumatic stress

all of that money went to their fund-raising operation quadriga.t been trying to figure out what has been going on here. >> do we know how much precilla wilkewitz actually makes? a lot of these charities pay salaries to the people who work for them. do we know how much? >> it's really a negligible amount, if anything at all. that's not what caught our attention. the money that everybody has donated, all the thousands and thousands of people, that's what we want to know where that money went to and, quite frankly, whether or not precilla knows where the money went. >> we'd love to ask her again. we extend an invitation. we can play "careless whisper" when she's here if she'd like. maybe that's her calling you. drew, we'll continue on. i appreciate the reporting. >>> you may have heard a rumor where the police force is in a part of the sect that worships warren jeffs. that group believes he's a prophet, the spokesperson for god. the town operates under its own brand of justice and tonight it seems untouchable. that's next. >>> an emotional day for je