Charities were used as fronts to scam a fortune, at the expense of kids with cancer.
Some very bad people made one hell of a living off
donations intended for cancer research and support:
Let the donor beware: A federal lawsuit alleges four cancer charities have scammed consumers out of more than $187 million.
The Federal Trade Commission and attorneys general in all 50 states and the District of Columbia announced Tuesday they have filed a lawsuit against the Cancer Fund of America, Children's Cancer Fund of America, Cancer Support Services and the Breast Cancer Society alleging they violated federal and state regulations. All four charities are run by members of the same family or their close business associates, as detailed in the 2013 "America's Worst Charities" joint report from the Tampa Bay Times and the Center for Investigative Reporting.
James Reynolds Sr. and family members ran the charities and spent an
outrageous amount on themselves:
The charities and their telemarketers often told donors their contributions would be used to provide pain medication to children suffering from cancer, transport cancer patients to chemotherapy appointments, and/or pay for hospice care for cancer patients.
None of it was true.
The individual defendants allegedly hired family members and friends, whether qualified or not, and used the organizations to provide them with steady, lucrative employment.
The sham charities spent more money on salaries than on the goods and services they provided to cancer patients. In addition, the complaint alleges that the defendants spent donations on things like cruises, jet ski outings, concert tickets and dating site memberships — actions that were made possible by corporate boards who rubber-stamped the decisions of the individual defendants.
Really makes you wonder how these folks ever slept at night. You can see more on the scam and the people behind it in this Anderson Cooper segment from 2013: