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Years. ever since we found out these two groups, one a company, one a charity, have been taking your generous donations to our nation's disabled veterans and pocketing almost all of the money. we are doing a story on quadriga arts and we're with cnn. the investigation covered she had almost total control over the charity. in effect, a charity was a front for quadriga's profit driven scheme. >> they got folks up to get the charity going and used their counsel to advise the charity and entered into a contract to lute qquadrigga and she had control of the funds going in. >> reporter: out of a tot...

Money your donated money q uadriga will take for itself. >> they were taking money to feed your overhead and pay your executives off as quadriga did here is despicable. >> the family company who announced an uncle who helped run the company tommy shuloff has ha resigned and his son mark is running the company and released this statement saying we have taken responsibility for the mistakes made and deeply apologize for our actions and have taken actions to ensure that this situation will never occur again. as for the disabled veterans national foundation, there are their four founding members h...

It made called gifts in kind like those coconut m&ms were useless to veterans. >> the abuses here really span the whole gamut of abuses you can see in a charitable organization and why this is such an interesting case because they were falsifying the value of the gifts in kind. they were sending things that no disabled veteran needed like m&ms and chef's hats. >> reporter: as a result of the settlement the dvmf founding board members including hits founder priscilla wilcox is being removed from the charity. its executive director has already left and the charity is banned from doing any busine...