Kentucky part of suit settled against sham cancer charities

FRANKFORT, KY. (WTVQ) – The Kentucky Attorney General’s Office announced Thursday that $2.5 million will be distributed to cancer centers across the United States as a result of a multi-state enforcement action against sham cancer charities.

The money was recovered through settlements of a landmark lawsuit against four affiliated sham charities:

• The Cancer Fund of America, Inc.
• The Breast Cancer Society, Inc.
• Cancer Support Services, Inc.
• The Children’s Cancer Fund of America – and their founder James Reynolds

The Attorney General’s Office says the settlements put in place a receiver who seized and liquidated all available corporate and personal assets. The people responsible for fronting these false charities are all banned from any charity or fundraising activities for the rest of their lives.

Cancer Fund of American also claimed to supply patients with pain medications and transportation to chemotherapy treatments, when it provided no such services, according to prosecutors.

The complaint alleged the leaders of these sham charities used donated funds to pay themselves exorbitant salaries, fund travel boondoggles and purchase luxury cars, boats, houses, handbags, jewelry and clothing. They also used funds to pay for day-to-day expenses such as gas, groceries and utility bills.

The money will be transferred to Rockefeller Philanthropy Advisors (RPA) who, under a services agreement with the plaintiffs, will distribute the funds to select health and medical programs targeting breast and pediatric cancer.

Eligibility will be determined through an invitation-only application process, and is limited to NCI-designated Cancer Care Centers, a designation bestowed by the National Cancer Institute on institutions and programs recognized for their scientific leadership, resources and the depth and breadth of their research.

RPA will ensure that the funding will serve patients in all 50 states, and will monitor, ensure compliance and provide detailed reporting for all grants awarded.

If you are ever curious about a charitable organization you should verify their 501(c)(3) status and what percentage of their income goes to the charity’s purpose.