Attorney General DeWine Announces State-Federal Settlement to Dissolve Two Sham Cancer Charities
March 30, 2016 - 12:14 PM
COLUMBUS - Ohio
Attorney General Mike DeWine announced today that his office, along
with the other 49 states, the District of Columbia, and the Federal
Trade Commission, reached a settlement to dissolve two nationwide sham
cancer charities and to ban their president from profiting from any
charity fundraising in the future.
Fund of America Inc., Cancer Support Services Inc., and their leader,
James Reynolds Sr., agreed to settle charges that the organizations
claimed to help cancer patients but instead spent the overwhelming
majority of donations on their operators, families, friends, and
down sham organizations means that more money can go to legitimate
charities that will put donors’ contributions to good use,” Attorney
General DeWine said. “We will continue to work with our enforcement
partners around the country to investigate and put an end to the misuse
of charitable funds.”
agencies’ complaint, filed in May 2015, targeted four sham charities
run by Reynolds and his family members for allegedly bilking donors out
of more than $187 million, of which Cancer Fund of America and Cancer
Support Services were responsible for over $75 million. The other two
sham charities, Children’s Cancer Fund of America Inc. and The Breast
Cancer Society Inc., agreed to dissolve under a settlement also
announced in May 2015.
settlement announced today concludes the largest joint enforcement
action ever undertaken by the Federal Trade Commission and state charity
the settlement order, Cancer Fund of America and Cancer Support
Services will be permanently closed and their assets liquidated.
Reynolds is banned from profiting from charity fundraising and nonprofit
work, and from serving as a charity’s director or trustee or otherwise
managing charitable assets. He also is prohibited from making
misrepresentations about goods or services and from violating the FTC’s
Telemarketing Sales Rule and state laws.
order also imposes a $75,825,653 judgment against Cancer Fund of
America, Cancer Support Services, and Reynolds, jointly and severally,
for the amount consumers donated to CFA and CSS between 2008 and 2012.
The judgment against CFA and CSS will be partially satisfied via
liquidation of their assets. The judgment against Reynolds will be
suspended upon surrender of certain items. The full judgment will become
due immediately if he is found to have misrepresented his financial
Stipulated orders have the force of law when approved and signed by the District Court judge.
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