PayPal may offer refunds to those who made donations to the Hurricane Sandy Relief Foundation depending on how the investigation goes against the organization.


Debris from the damaged Casino Pier is removed (Mark Wilson/Getty Images)

John Sandberg and Christina Terraccino, in a lawsuit filed by the state, are accused of multiple violations of New Jersey’s Charitable Registration and Investigation Act, Charities Regulations, Consumer Fraud Act, and Nonprofit Corporation Act. Their organization  raised more than $631,000 in monetary donations from at least 1,999 people, but has disbursed less than one percent of that amount to Sandy-related causes, according to records obtained by the state.

Bergen Kay, a PayPal representative told the Star Ledger they would co-operate with the investigation into HSRF and depending on the outcome would issue refunds.

“We do have a verification process for nonprofits accepting PayPal donations and in general when we learn of situations where anyone may be taking advantage of the goodwill of the community, we investigate for further verification," Bergen wrote the Star Ledger in an email.

HSRF's website is no longer accepting donations via PayPal.