publication date: May. 22, 2015
Four Cancer Charities Charged With Fraud in Raising $187 Million
The Federal Trade Commission charged four cancer charities with fraudulently raising $187 million between 2008 and 2012.
The federal complaint names Cancer Fund of America Inc., Cancer Support Services Inc., their president, James Reynolds, Sr., and their chief financial officer and CSS’s former president, Kyle Effler; Children’s Cancer Fund of America Inc. and its president and executive director, Rose Perkins; and The Breast Cancer Society Inc. and its executive director and former president, James Reynolds II.
The complaint is posted here. The action was announced May 19.
The four charities didn’t fund research. Instead, they claimed to provide direct help to cancer patients.
“Not one of the Defendants has operated a program that provides cancer patients with pain medication to alleviate their suffering, transports cancer patients to chemotherapy appointments, or pays for hospice care,” the complaint states. “Moreover, the vast majority of donors’ contributions have not directly assisted cancer patients in the United States or otherwise benefitted any charitable purpose. Rather, donations have enriched a small group of individuals related by familial and financial interests and the for-profit fundraisers they hired. This diversion of charitable funds has deceived donors and wasted millions of dollars that could have been spent as donors intended, to help Americans suffering from cancer.”
The contributions financed personal loans to insiders, paid for trips to Las Vegas, New York and Disney World, as well as cars, college tuition, gym memberships, Jet Ski outings, dating website subscriptions, cruises and tickets to concerts and … Continue reading 41-20 Four Cancer Charities Charged With Fraud in Raising $187 Million
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