Attorney General Mark Herring and the Federal Trade Commission have announced one of the largest charity fraud actions ever brought by enforcers. The FTC, Virginia, all other states, and the District of Columbia have charged four cancer charities and their operators with bilking more than $187,000,000 from consumers. The joint enforcement action alleges deceptive solicitations.
The federal court complaint names Cancer Fund of America, Cancer Support Services, The Breast Cancer Society, and Children's Cancer Fund of America. FTC Bureau of Consumer Protection Director Jessica Rich said people were told their donations would help cancer patients, but most funded the defendants’ lifestyles.
“Defendants spent consumer donations on cars, on vacations, cruises, college tuition, gym membership, jet ski outings, sporting events and concert tickets, and dating site memberships, among other things.”
The defendants are also accused of violating Virginia’s Solicitation of Contributions law. Herring said such fraud shakes the confidence of donors and undermines legitimate charities.
“We’re shutting down a few particularly bad actors and sending a strong and unmistakable signal to everyone across the country who thinks they can exploit and profit off the generosity and kindness of others: ‘You will be caught, and you will be held accountable.’”
The Better Business Bureau also warned consumers to take the time to investigate charities, including through its site, give.org.