CLEVELAND -- A NewsChannel5 exclusive investigation is getting both state and federal attention after it uncovered who is getting rich off donations that people thought were helping veterans.

Ohio Attorney General Mark Dann filed a major lawsuit and the Federal Trade commission in Washington is also taking action, reported NewsChannel5 investigator Ron Regan.

The undercover investigation exposed the truth about where your money to charity is really going.

The Disabled Veterans Associations wouldn't answer questions about where the money went, and neither would the professional fundraiser that got paid millions in donations.

The Five On Your Side investigation exposed how the Disabled Veterans Associations in Parma Heights raised more than $5 million, but less than 13 cents of every dollar actually went to veterans.

Dann said donors are being misled.

"Getting rich off the backs of donors and again, as I said, actually getting rich off the backs of disabled veterans," he said.

Dann confirmed that his office has been investigating the charity for months.

"Instead, it's going into the pocket of some for profit charitable solicitor and its wrong," said Dann.

He's talking about Civic Development Group. It's founders own huge multimillion-dollar beachfront homes, and the company got paid millions in donations.

"Donors are being cheated because they think they are doing something worthwhile," said Dann.

That's exactly the case with Disabled Veterans Associations, which is unrelated to the DAV, or Disabled American Veterans, which has a long history of charitable giving and grave concerns about charities that trade off its good name, Regan reported.

"It makes you really angry that people would use that to someone else's advantage and to our disadvantage. If you're going to help veterans and you say you're gong to help them and you're going to raise money, then help them," said Arthur H. Wilson of Disabled American Veterans.

The Disabled Veterans Associations was founded by Michael Coley, who served six months in prison for selling unregistered securities and theft.

Today, his ex-girlfriend runs the charity and tax returns show she once gave a $14,000 gift from her charity to another one right next door, a charity run by Michael Coley.

Dann said, "It not only raises questions--that's exactly the kind of conflict of interest that we simply won't tolerate in charitable non-profits in the state of Ohio. So that's exactly the kind of conflict of interest that would cause us to seek and take over those charitable non profits and shut them down."

In Washington, the Federal Trade Commission has filed a major lawsuit against Civic Development Group in connection with other charities.

"CDG is telling consumers that there is no professional fund raiser involved in the solicitation, and that 100 percent of the donation is going directly to the charity. What we have alleged in the complaint is that that is not the case and that in fact, 80 to 90 percent of the donation is going to CDG," said The FTC's Robert Kaye. Dann is promising massive reform of Ohio's charitable giving.

"We're going to send some subpoenas. We're going to find out what's going on. We're going to hold those people accountable. Because I want people, when they write a check in Ohio, to have confidence that their money is going to do the good work that they think they are doing," said Dann.

For More Information:

• To donate to the Disabled American Veterans, check out dav.org and ohioveteranshome.gov.
• For the attorney general's guide to charitable giving, check out this site.
• For a full report on all charities in the state of Ohio, go to the Ohio AG site.
• For registered solicitors as of August 2007, check out this list.
• Contact the Attorney General Help Center (Charitable Organizations) here.
• To Research Charities, try the Federal Trade Commission, BBB Wise Giving Alliance, Charity Watch, GuideStar and Charity Navigator.