Main | Tuesday, May 19, 2015

Cancer Charities Hit With Fraud Charges, Feds Say They Stole $187M From Donors

Via USA Today:
Charities that claimed their funds were helping patients fighting cancer but were actually spending the bulk of donations on vacations, concerts and other luxurious perks are facing federal charges that they stole more than $187 million from consumers in one of the biggest charity fraud cases ever filed. The Federal Trade Commission, along with law enforcement officials throughout the U.S., filed the complaint against the Cancer Fund of America, Children's Cancer Fund of America, The Breast Cancer Society and Cancer Support Services, along with several of those organizations' executives.

"The defendants' egregious scheme effectively deprived legitimate cancer charities and cancer patients of much-needed funds and support," Jessica Rich, director of the Federal Trade Commission's Bureau of Consumer Protection, 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. I'm pleased that the FTC and our state partners are acting to end this appalling scheme."

The Children's Cancer Fund of America and its president and executive director, Rose Perkins [PHOTO], along with The Breast Cancer Society and its executive director, James Reynolds II, and Cancer Support Services' chief financial officer, Kyle Effler, have agreed to settle the charges that they are facing. The three executives will be barred from managing charities, fundraising and overseeing charity assets. The Children's Cancer Fund of America and The Breast Cancer Society will also go out of business. The other parties in the complaint will continue to face legal action.

Labels: , , ,

comments powered by Disqus