meet pierre barnadi, emerges as -- fired by the montreal spca board, only to emerge as the founder of-based charity. spca international. from his home in montreal in a rarely staffed office in new york, barnadi and quadriga art have 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. but you're going to be stunned to find out just how this operation works. >> this is so -- and once we start scratching the surface of this thing, drew, it just gets deeper and deeper and more shocking. so many of these charities where hardly any of the money goes to charity. all seem to have this one private fundraiser taking in all the money and that's quadriga art right here in new york. i had never heard about them. >> me neither but they are huge. a private company that simply will not speak to us. won't even return phone calls except to a public relations firm. but it is this firm that's doing all the collecting and as far as we can tell, collecting millions and millions of dollars in donated money

last time, we told you about another charity called the montreal spca. canadian charity that helps aband donned cats and dogs. it entered into a deal with an american private fund-raising company to solicit donations. after three year, the montreal spca received about $13 million in donations. but despite all that money, they've still ended up in the hole more than $4.5 million, owing money. the bills from that fund-raising company were so huge that nearly every penny, every dollar that came in went to pay those bills. now, the montreal spca is so in debt, actually holds a lien on the group's animal shelter. the manager who put together that deal and was fired he went to a new u.s.-based animal charity called spca international. remember that name. its signature program is baghdad pups. here's drew griffin with part two of his investigation. >> reporter: the televised appeal on cnn's sister network hln in 2011 was heart warming. >> actually live in the studio with retired army sergeant jerry barns who has nugget with him. and then sitting right beside nug