The Federal Trade Commission announced Tuesday, in conjunction with all 50 states’ attorneys general and the District of Columbia, lawsuits against the Cancer Fund of America, Children’s Cancer Fund of America, Cancer Support Services and the Breast Cancer Society claiming violations of federal and state regulations.
According to Jessica Rich, director of the FTC’s Bureau of Consumer Protection, claims the leaders of the charities took in millions of dollars intended to aid cancer patients and research, and instead spent it on themselves and additional fundraisers.
Only about 3 percent of all donations received by those four charities between 2008 and 2012 was actually spent to help cancer patients, the government alleges. The rest of the money was spent either on private fundraisers or directly to the heads of the charities.
In its complaint, the organizations are referred to as, “sham charities.”
According to a 2013 report, each of the four listed charities are directed by members of the same family, or people to whom they have a personal relationship.
The Breast Cancer Society, along with the Children’s Cancer Fund of America have each entered into settlement agreements and will be dissolved.
Judgments against those organizations total about $137 million and will be redirected to the direct aid of cancer patients.
