Cancer

[mr40]

Lawsuit: 4 cancer charities scammed $187 million from donors
By Mina Abgoon. CREATED May 19, 2015

The operators of four related cancer charities are accused of conning their donors out of more than $187 million over the span of several years, allegedly using funds for personal reasons and fundraisers rather than on assistance to cancer patients.

Alleging the charities violated federal and state regulations, the Federal Trade Commission (FTC) — as well as the 50 states and the District of Columbia — announced on Tuesday a lawsuit against the Cancer Fund of America, Children's Cancer Fund of America, Cancer Support Services and the Breast Cancer Society.

All of the organizations are run either by members of the same family or their close business associates. The complaint names the charities and three family members — James Reynolds Sr., James Reynolds II and Rose Perkins — as defendants, according to the Wall Street Journal.

NPR reports the accused told donors their money was being used for services like hospice care and transporting chemotherapy patients, while most of it — about 85 percent — was in reality being used for professional fundraisers, while much of the rest went to personal uses like trips and concert tickets.

Only about 3 percent of the collective funds raised were actually used for charitable purposes, CNBC reports.

"The defendants' egregious scheme effectively deprived legitimate cancer charities and cancer patients of much-needed funds and support," Jessica Rich, director of the FTC's Bureau of Consumer Protection, reportedly said in a statement. "The defendants took in millions of dollars in donations meant to help cancer patients, but spent it on themselves and their fundraisers."

NPR reports, “Two of the charities — the Breast Cancer society and Children's Cancer Fund of America — have agreed to settle the suits and disband. But the Cancer Fund of America and Cancer Support Services, as well as one official of the charities, are fighting the allegations.”

Mark Hammond, the South Carolina secretary of state, said the allegations should remind people to be “vigilant when giving to charity.”

http://www.scrippsmedia.com/kgun9/now-trending/Lawsuit-4-cancer-charities-scammed-187-million-from-donors-304345941.html