The Federal Trade Commission, along with officials from every state in the country and the District of Columbia, announced on Tuesday that they were filing charges alleging that four cancer charities misled donors and stole nearly $200 million.
In a complaint filed in the U.S. District Court for the District of Arizona, the commission accused four charities along with former and current organization officials of misleading donors about the services they provide and misusing over $187 million. The four charities are the Cancer Fund of America, Inc., Cancer Support Services Inc., Children’s Cancer Fund of America Inc. and The Breast Cancer Society Inc.
The complaint claims that the charities misrepresented themselves by claiming to provide legitimate assistance to cancer patients, helping with costs for things like transportation to chemotherapy. In reality, the FTC alleges, the charities used the money for things like luxury cruises, gym memberships, jet ski outings and to pay family members’ salaries.
In a statement, the FTC announced that Children’s Cancer Fund of America and The Breast Cancer Society had agreed to settle charges. Under the proposed settlement order, which still needs to be approved by the District Court judge, both organizations would be dissolved. James Reynolds II, who was named in the complaint and was executive director of The Breast Cancer Society, has agreed to settle the charges. Kyle Effler, who was named as well and is the chief financial officer and former president of Cancer Support Services, and Rose Perkins, president and executive director of the Children’s Cancer Fund of America, have also agreed to settle.
The FTC is also proposing as part of the settlement that the individuals involved in wrongdoing be banned from fundraising and other charity work.
The FTC said that it would continue litigation against the Cancer Fund of America, as well as Cancer Support Services and James Reynolds Sr., the group’s president.
SOURCE: Sam Levine