Four cancer charities charged for scamming donors out of $187 million

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Four Cancer Charities Charged For Scamming Donors Out Of $187 Million
Americans give billions of dollars to charitable operations every year, but sadly not all of the recipients are legitimate.

On Tuesday, charges were filed against 4 cancer charities for allegedly scamming donors out of over 187 million dollars.

Taking the action were the Federal Trade Commission and legal representatives from all 50 states and the District of Columbia.

The lawsuit specifies the entities charged as the Cancer Fund of America, the Children's Cancer Fund of America, the BreastCancer Society, and Cancer Support Services, along with several directors and operators who are either related or business associates.

The complaint against them characterizes the organizations as being, "operated as personal fiefdoms characterized by rampant nepotism, flagrant conflicts of interest, and excessive insider compensation..."

Dubious acts allegedly perpetrated by the organizations' management are many.

Among the highlights is the use of donations for personal expenditures such as Disney vacations, jet ski excursions, and dating website memberships.

It's also said that the charities hired professional fundraisers and frequently allowed them to keep 85 percent of the money they collected.

Actual charitable uses are believed to account for only about 3 percent of the donation spending.

Two of the four charities involved in the filing have already agreed to take pleas and dissolve their organizations.

Below are some other examples of 'charities' which were exposed as scams:
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Four cancer charities charged for scamming donors out of $187 million
Spanish lawyer Javier Cremades (L) listens during the first meeting of the global alliance of laws firms of 22 countries affected by the Madoff's fraud in Madrid, on February 17, 2009. Former Nasdaq stock exchange chairman Bernard Madoff was arrested in early December after allegedly confessing to his two sons and to the FBI that he had run a 50-billion-dollar pyramid fraud known as a Ponzi scheme. Investors caught in Madoff's alleged fraud include Hollywood celebrities, charities, universities, and major financial institutions including UBS, HSBC, JP Morgan Chase, BNP Paribas and Citigroup. AFP PHOTO/ PIERRE-PHILIPPE MARCOU (Photo credit should read PIERRE-PHILIPPE MARCOU/AFP/Getty Images)
Former logistics operator of French charity Arche De Zoe (Zoe's Ark) Alain Peligat leaves Paris courthouse with his wife Christine, on December 3, 2012? at the end of the first day of the trial of six Arche de Zoé members,accused of illegal involvement in adoption procedures, attempting to help minors enter France illegally and fraud. This week’s trial concerns charges made in France as Chadian President Idriss Déby pardoned them in March 2008 leading to their release in France. AFP PHOTO ERIC FEFERBERG (Photo credit should read ERIC FEFERBERG/AFP/Getty Images)
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