montreal's spca would become cat canadian spca, and quadriga art would send fund-raising mailers across canada. the money started rolling in, but there was a big problem. practically every dollar that came in, according to montreal's new spca director was going directly into the coffers of quadriga art. the fundraising bill so large that after three years, the montreal spca, despite receiving about $13 million in donations, was in the hole more than 4.5 million. >> how do you get in debt to a fund-raiser? >> by incurring expenses and not having a plan for getting out of it. it was not a smart decision on the spca's part and we let quadriga create strategy for us. >> the strategy was simple. quadriga art would send out pleas for money on behalf of this shelter, include tote bags and other gifts made by quadriga art's chinese factory, but the costs far exceeded the donations and the spca was locked into this contract for seven years. the fundraising operation was so upside down for the montreal spca that they actually still owe quadriga art nearly $2 million and quadriga has even taken ou

i'm with cnn. >> yes. >> reporter: meet pierre barnotti, fired by the montreal spca, only to emerge as the founder of a new charity, spca international. from a rarely staffed office in new york, barnotti and quadriga art designed a new charity, to tug on the heart strings with its signature program called baghdad pups. the stated goal, reuniting vets and their war pets. the televised appeal with an unwitting former military dog handler on cnn's sister network hln in 2011 was heart warming. >> our salute to the troops today is live in the studio with retired army sergeant jerry barnes who has nugget with him, and then sitting right beside nugget is terry, with the spca, and ivy is down at my feet. >> reporter: terry crisp, with spca international, was telling our viewers, ivy and nugget were two bomb sniffing dogs that worked for a u.s. contractor in iraq and had been essentially abandoned by the company. she rescued them and was trying to find them homes. and hln anchor robin meade understandably couldn't believe it. >> how do they fall through the cracks and get stranded there? that's

the montreal spca, canadian charity that helps abandoned cats and dogged received $13 million in donations

in the montreal spca, a canadian charity, received about $13