Editorial Note: Scams, frauds and charities continue to be a source of concern for those hoping to support worthwhile causes or services. Autism Daily Newscast has reported on numerous bogus organizations in the past from Paintballers 4 Autism to misleading medical claims. While the following story concerns cancer charities, we urge all readers to verify with the Better Business Bureau before donating money to any organization claiming charitable status.
Washington, DC – The Federal Trade Commission (FTC) has revealed that the heads of four family-run cancer charities are being charged with fraud.In what is considered to be a “rare” joint action launched by lawyers in each of the country’s 50 states, administrators of the charities were found to have stolen a total of $187 million between 2008 and 2012.
The non-profits, which were initially intended to provide funding for breast and children’s cancers in addition to providing support services, was improperly run by several members of an extended family. James Reynolds Sr., his son James Reynolds Jr. and Rose Perkins, the ex-wife of the elder Reynolds, had claimed to be using the charity to provide direct support to cancer patients in need in addition to funding research initiatives. However the family spent 97% of the donations on personal goals such as college tuition, JetSki excursions, college tuition and concert tickets.
The FCC also found evidence of what it refers to as “rampant nepotism” where wives, siblings and a step-nephew held positions within the organizations. In the aftermath of the sweeping charges being laid against the accused, two charities will be dissolved and both Reynolds and Perkins face fines totaling $90 million dollars.The Reynolds have, in turn, released a statement denying the charges and reveal that they intend to contest them in court.
David Fitzpatrick and Drew Griffin for CNN: Government says four cancer charities are shams