FTC and states wrap up largest charity enforcement action ever

Last May, we told you that the FTC, along with all 50 states and the District of Columbia, announced a complaint against four sham charities. Children’s Cancer Fund of America and the Breast Cancer Society agreed to shut down, but Cancer Fund of America (CFA) and Cancer Support Services (CSS) refused – until now.

CFA, CSS and their leader, James Reynolds, Sr., have since agreed to settle charges that, while those two groups claimed to help cancer patients, they actually spent the overwhelming majority of donations on their operators, families and friends, and fundraisers.

Under the settlement order announced today, CFA and CSS will shut down and their assets will be liquidated. The order also imposes a judgment against CFA, CSS, and Reynolds of $75,825,653, the amount consumers donated to CFA and CSS between 2008 and 2012. What’s more, Reynolds is banned from profiting from charity fundraising and nonprofit work, and from serving as a charity’s director or trustee or otherwise managing charitable assets.

If you’re considering donating to a charity, do some research before you give. By finding out as much as you can about the charity, you can avoid fraudsters who try to take advantage of your generosity.

  • Ask the charity questions directly about what it will do with your money.

The National Do Not Call Registry gives you a way to reduce telemarketing calls, but charities are exempt. However, if a fundraiser is calling on behalf of a charity, you can ask not to get any more calls from that fundraiser on behalf of that charity. Just say “please put me on your do not call list.”  If those calls continue, the FTC wants to hear about it. The fundraiser may be subject to a fine.

Blog Topics: 
Money & Credit

Comments

Great job!

So where and what organization does the money raised for Relay for Life go to?

If you want to check out a charity that sponsors an event, do some research. Ask the charity questions what it will do with your money.

That's a shame..God, how far these people can go.!!

Are any of the involved going to do any jail time?

The FTC is a federal civil law enforcement agency. A settlement with the FTC does not include jail time. If a case is brought by an agency with criminal authority, it may lead to jail time. Under the settlement order with the FTC, Cancer Fund of American and Cancer Support Services will be permanently dissolved and their assets liquidated. James Reynolds is banned from profiting from charity fundraising and nonprofit work, and from serving as a charity’s director or trustee or otherwise managing charitable assets. He is also prohibited from making misrepresentations about goods or services, and violating the FTC’s Telemarketing Sales Rule and state laws.

I don't see any mention of prison terms for these con artists! Why are they allowed to operate a scam, live an affluent life for years, and receive a slap on the wrist? Anyone who thinks they are surrendering all their assets are fools! There is money stashed somewhere for them to live on.

The FTC is a federal civil law enforcement agency. A settlement with the FTC does not include jail time. 

Under the settlement order with the FTC, Cancer Fund of American and Cancer Support Services will be permanently dissolved and their assets liquidated. James Reynolds is banned from profiting from charity fundraising and nonprofit work, and from serving as a charity’s director or trustee or otherwise managing charitable assets. He is also prohibited from making misrepresentations about goods or services, and violating the FTC’s Telemarketing Sales Rule and state laws.

The Order imposes a judgment of more than $75 million against CFA, CSS, and Reynolds. CFA and CSS will partially satisfy the judgment by liquidating their assets.

The judgment against Reynolds will be suspended when he surrenders certain personal assets. If Reynolds is found to have misrepresented his financial condition, the full judgment will become due immediately.

Impressive! Next, maybe you could go to congress and show them how to get things done.

Due to these frauds and many like them I will NEVER give to a charity organization. If you look at the salaries of the people running them you will understand why. Basically if you give money you are supporting their lavish lifestyle. When I give money it's to an family I know is in need who didn't ask for it, and it is done without their knowledge of who did it.

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