Man accused of running ‘sham’ cancer charity
Oklahoma has joined the Federal Trade Commission and nine other states in a lawsuit against a cancer charity authorities say is a sham.
In Houston federal court, the 10state coalition and the FTC accuse the Cancer Recovery Foundation International, also known as Women’s Cancer Fund, and its operator, Gregory B. Anderson, of raking in more than $18.25 million from donors between 2017 and 2022.
The lawsuit alleges that the organization claimed it would use the donations to help women undergoing treatment for cancer pay for their families’ basic needs.
However, the lawsuit alleges, only $194,809 — roughly 1% — was spent directly on helping women with cancer.
In contrast, Anderson paid himself more than $775,139 while paying forprofit fundraisers he worked with more than $15.55 million, or 85% of the total raised, the lawsuit alleges. The remaining amount allegedly went to pay for overhead expenses, travel and hotels.
“It is appalling that this organization abused the generosity of donors who only wanted to help cancer victims and their families,” Oklahoma Attorney General Gentner Drummond said in a statement. “This illegal conduct robbed women who were undergoing treatment for cancer and, in the process, undermined fundraising efforts for legitimate charities.”
Drummond said a previous lawsuit against two of the fundraising companies hired by Women’s Cancer Fund apparently did not deter Anderson, who went on to hire other fundraisers for “similarly deceptive claims.”
Anderson, 76, who resides in Texas, could not immediately be reached for comment for this story. Calls to two listed phone numbers did not go through. A third call led to a man saying The Oklahoman had the wrong number.
An email seeking comment could not be delivered. It is unclear whether Anderson has retained an attorney.
The lawsuit alleges Anderson and his organization used telemarketing and direct mailers to solicit donations.
Pledge letters signed by Anderson promised donors that he would make “sure your gifts are getting to the cancer patients and families,” according to the lawsuit.
Donation amounts typically ranged from $20 to $50 per donor.
The lawsuit accuses Anderson and Women’s Cancer Fund of lying to “tens of thousands of generous donors” about the good their charitable contributions would accomplish, and effectively preventing millions of dollars from going to legitimate charities.
Anderson and Women’s Cancer Fund are accused in the lawsuit of using the COVID-19 pandemic to appeal to donors to give more money.
Pledge letters claimed the donations would “go to directly help cancer patients and their families who are in need” and as a result of the pandemic, Women’s Cancer Fund “expanded” its coverage.
From 2020 to 2021, donors contributed roughly $1.59 million to Women’s Cancer Fund, according to the lawsuit.
Of that amount only $50,670 was alleged to have been distributed among 542 cancer patients. The Women’s Cancer Fund board of directors were all handpicked by Anderson and provided little to no oversight of operations, according to the lawsuit.
The first time the board established a committee to review and set compensation for Anderson was in January 2021.
“Instead of exercising independent oversight of Women’s Cancer Fund, the board simply rubber-stamped the actions of Anderson,” the lawsuit states.
Anderson is also accused of creating and dissolving at least 10 cancer-related nonprofits since at least 2009, including the Cancer Recovery Foundation of Canada, Breast Cancer Charities of America and Children’s Cancer Recovery Foundation.
In addition to Oklahoma and the FTC, the lawsuit was filed by California, Florida, Maryland, Massachusetts, North Carolina, Oklahoma, Oregon, Texas, Virginia and Wisconsin