A New Jersey telemarketing outfit accused by the federal government of falsely telling consumers that all the money it raised would go directly to good causes like local firefighters and police was hit with the largest civil fine ever, $18.8 million, the Federal Trade Commission said Wednesday.

An excerpt from the FTC's press release:

The civil penalty against Civic Development Group, LLC; CDG Management LLC; and owners Scott Pasch and David Keezer is the largest ever in an FTC consumer protection case. The penalty should deter others from violating Commission orders and from deceiving consumers and harming legitimate charities. The case was filed on the FTC's behalf by the U.S. Department of Justice.

"This scheme packed a one-two punch: it deceived the people who donated, and it siphoned much-needed funds from police, firefighters, and veterans groups," said David Vladeck, Director of the FTC's Bureau of Consumer Protection. "The court's final settlement order packs a one-two punch of its own: a record-breaking financial penalty for violating an FTC order and a lifetime ban on soliciting charitable donations."

The agency describes the assets Pasch and Keezer have agreed to hand over to the feds to settle the civil suit against them. They apparently have some fairly expensive tastes.

Pasch will turn over a $2 million home; paintings by Picasso and Van Gogh valued collectively at $1.4 million; a guitar collection valued at $800,000; $270,000 in proceeds from a recently sold wine collection; jewelry valued at $117,000; three Mercedes, a Bentley, and various other assets. Keezer will turn over a $2 million home, a Range Rover, a Cadillac Escalade, and a Bentley, among other assets.

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