Two nationwide organizations purporting to be cancer charities have entered an agreement with the Federal Trade Commission, all 50 states and the District of Columbia, concluding the largest joint enforcement action ever undertaken by the FTC and state charity regulators.
In its complaint filed in May 2015, the FTC alleged four nonprofits bilked more than $187 million from donors between 2008 and 2012. Cancer Fund of America Inc., and Cancer Support Services Inc., which were operated by James Reynolds, Sr., were responsible for more than $75 million of that amount. The charities claimed to raise money for people with cancer but actually spent donated funds on lavish vacations and expensive cars, among other things, according to the FTC.