‘Sham’ cancer charities in hot water
$187 million went to plush perks, FTC says
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 the groups’ 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 complaint charges that the charities were shams, calling, mailing and passing out materials through the Combined Federal Campaign, which collects donations from federal workers for non-profit groups, based on the premise that they helped cancer patients in a variety of ways, including getting them to chemotherapy treatments and providing them with pain medication and hospice care.
In reality, the organizations were used to provide cushy gigs for family members and friends, while donations went toward plush trips, Jet Ski outings and college fees. Professional fundraisers who were brought on board often got 85% or more of each contribution.
The Children’s Cancer Fund of America and its president and executive director, Rose Perkins, along with The Breast Cancer So- ciety 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.
Daniel Borochoff of the group CharityWatch said in an email that he was “grateful that our government regulators are working to put a stop to these four outfits that have been misleading the public and wasting America’s precious charitable dollars for far too long. ... This claim illustrates why we need better charity accountability and more regulatory enforcement.”