4 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.
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 Breast Cancer 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 freedoms 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% of the donation spending.
Two of the four charities involved in the filing have already agreed to take pleas and dissolve their organizations.