Iowa Attorney General Tom Miller, together with all 50 states, the District of Columbia, and the Federal Trade Commission (FTC), have jointly filed a federal case accusing four cancer charities and their operators of bilking over $187 million from consumers in the United States.
Cancer Fund of America, Children’s Cancer Fund of America, Cancer Support Services and the Breast Cancer Society allegedly presented themselves to donors as legitimate charities with massive programs nationwide. They focused on offering direct support to cancer patients, children with cancer, and breast cancer patients across the country.
On Tuesday, the plaintiffs also filed stipulated judgments with Children’s Cancer Fund and Rose Perkins; The Breast Cancer Society and James Reynolds, II; and Kyle Effler.
The defendants, their families and friends, and professional fundraisers received about 85% or more of every donation when cancer victims did not get necessary help form the charities.
They spent of majority portions of donations on salaries, luxuries, personal watercraft outings, concert tickets, and dating site memberships.
“These defendants raised money to help victims of cancer, and then used the money primarily on themselves,” Miller said. “This conduct was at the expense of legitimate charities and causes, and the many generous donors who wanted to alleviate suffering by cancer victims.”
In settlements filed with the complaint concurrently, five charities agreed to quit the charity business and close fundraising.