While telemarketers from the Knoxville based Cancer Fund of America told their donors nationwide that they would give children with cancer help paying for pain medication, hospice care, as well as drive them to their chemotherapy sessions, this is not the case. It has been discovered that Cancer Fund of America are a fake charity that instead used 87 cents of every dollar on themselves.
The Cancer Fund of America is supposed to be a non-profit organization, but they only spent $187 million of funds on things for the cancer stricken children, with the rest of the money from the fake charity going to pay for things like salaries, expensive trips, personal loans, meals at Hooters, sports events, college tuition, concerts, Victoria Secret lingerie and more for the workers and the owner of the company, James T. Reynolds, Sr.
Members even went on adventure cruises, Walt Disney World, as well as using funds to pay for a tagalong babysitter while they had their adventure using money meant for sick children, according to the Federal Trade Commission.
Joint Lawsuit Filed Against Fake Charity
The FTC and its agencies all over the US filed a joint lawsuit against the Cancer Fund of America for being a fake charity. The lawsuit contains accusations of fraud, breaking telemarketing regulations and misleading state charity regulators. The lawsuit helped to bring about a settlement from the fake charity, as well as against Reynold’s ex-wife and son, and a business associate. The settlement was for over $200 million.
However, there is still a case against the fake charity founder, James T. Reynolds, Sr. According to the Tennessee Secretary of State Treasurer, the group has been the subject of an investigation by the federal government for over four years.
Fake Charity Locks Up and Closes Down Its Businesses
As of Tuesday, the headquarters of the fake charity, the Cancer Fund of America in Knoxville was locked up and closed down for business. All of its mail was even lying on the ground outside of the building. No one from the company was available for comment to investigating reporters. Three affiliated charities were also involved in the fake charity scam, including the Children’s Cancer Fund of America, the Cancer Support Services and the Breast Cancer Society. That makes this fake charity case one of the biggest that the feds have dealt with and brought charges against.
