[ed. And they got away with it. So how is this a deterrent to anyone, exactly?]
A Tennessee man and his family used much of the $187 million it collected for cancer patients to buy themselves cars, gym memberships and take luxury cruise vacations, pay for college tuition and employ family members with six-figure salaries, federal officials alleged Tuesday in one of the largest charity fraud cases ever, involving all 50 states.
The joint action by the Federal Trade Commission and the states says James T. Reynolds Sr., his ex-wife and son raised the money through their various charities: The Cancer Fund of America in Knoxville, Tennessee, and its affiliated Cancer Support Services; The Breast Cancer Society in Mesa, Arizona; and the Children's Cancer Fund of America in Powell, Tennessee. (...)
Anyone who donated money to these groups shouldn't expect a refund anytime soon. While litigation against Reynolds Sr. and the Cancer Fund of America is ongoing, the settlement agreements with Reynolds' son, ex-wife and a long-time associate of the family - Kyle Effler - notes that much of the money has already been spent. The agreement bans the three from fundraising and shuttered their organizations.
"The money is mostly gone," said Jessica Rich, director of the FTC Bureau of Consumer Protection. Rich declined to say whether a separate criminal investigation might be underway, noting only that the regulatory agency doesn't have that authority. (...)
The settlement agreement imposed hefty judgments based on the amount of money donated to the charities between 2008 and 2012. But because of Perkins' "inability to pay," her $30 million judgment would be suspended entirely. The $65.5 million judgment against Reynolds II would be suspended after he pays $75,000.
Effler, former president of Cancer Support Services, faced a $41 million judgment that would be forgiven after paying $60,000.
Officials on Tuesday said that any money recouped under the settlements would go to state authorities, which will have the ability to distribute the money to legitimate charities. Officials cited complexities of the case to explain why the charities were allowed to continue operating even after media outlets flagged them as potentially fraudulent.
"I hope it serves as a strong warning for anyone trying to exploit the kindness and generosity of others," Virginia Attorney General Mark Herring said of the investigation.
by Anne Flaherty, AP | Read more:
Image: via:
A Tennessee man and his family used much of the $187 million it collected for cancer patients to buy themselves cars, gym memberships and take luxury cruise vacations, pay for college tuition and employ family members with six-figure salaries, federal officials alleged Tuesday in one of the largest charity fraud cases ever, involving all 50 states.The joint action by the Federal Trade Commission and the states says James T. Reynolds Sr., his ex-wife and son raised the money through their various charities: The Cancer Fund of America in Knoxville, Tennessee, and its affiliated Cancer Support Services; The Breast Cancer Society in Mesa, Arizona; and the Children's Cancer Fund of America in Powell, Tennessee. (...)
Anyone who donated money to these groups shouldn't expect a refund anytime soon. While litigation against Reynolds Sr. and the Cancer Fund of America is ongoing, the settlement agreements with Reynolds' son, ex-wife and a long-time associate of the family - Kyle Effler - notes that much of the money has already been spent. The agreement bans the three from fundraising and shuttered their organizations.
"The money is mostly gone," said Jessica Rich, director of the FTC Bureau of Consumer Protection. Rich declined to say whether a separate criminal investigation might be underway, noting only that the regulatory agency doesn't have that authority. (...)
The settlement agreement imposed hefty judgments based on the amount of money donated to the charities between 2008 and 2012. But because of Perkins' "inability to pay," her $30 million judgment would be suspended entirely. The $65.5 million judgment against Reynolds II would be suspended after he pays $75,000.
Effler, former president of Cancer Support Services, faced a $41 million judgment that would be forgiven after paying $60,000.
Officials on Tuesday said that any money recouped under the settlements would go to state authorities, which will have the ability to distribute the money to legitimate charities. Officials cited complexities of the case to explain why the charities were allowed to continue operating even after media outlets flagged them as potentially fraudulent.
"I hope it serves as a strong warning for anyone trying to exploit the kindness and generosity of others," Virginia Attorney General Mark Herring said of the investigation.
by Anne Flaherty, AP | Read more:
Image: via:
