Alabamians were scammed out of millions by phony cancer charities

—

May 19, 2015

MONTGOMERY, Ala. — Attorney General Luther Strange announced Tuesday that Alabama is joining all 49 other states in a lawsuit against several “phony” cancer charities that allegedly scammed donors out of $187 million while using funds to go on cruises and buy jet skis, concert tickets, and memberships to online dating sites.

The federal court complaint names Cancer Fund of America Inc., Cancer Support Services Inc., and the president of these two corporations, James Reynolds Sr.; as well as the CFO of both and the former president of Cancer Support Services, Kyle Effler; Children’s Cancer Fund of America Inc., and its president and executive director, Rose Perkins; and The Breast Cancer Society Inc., and its executive director and former president, James Reynolds II.

The “charities” claimed to give services including transportation and pain medication to cancer patients.

“The claims defendants made to consumers were lies. Quite simply, they did not operate programs that provided these services,” said Attorney General Strange in a press release Tuesday. “I am pleased that this action presents a united front to combat this shameful charity fraud. Working together, we have stopped these deceptive solicitations throughout Alabama and all states in the nation, which falsely claimed to help children with cancer and breast cancer patients. Litigation continues against Cancer Fund of America to end its despicable practices as well.”

The defendants in the case, which was filed in the U.S. District Court for the District of Arizona, have come to a tentative settlement, agreeing to pay back the millions of dollars. They would also be barred from working in fundraising or charities. However, the settlement will not be final until it is approved by the federal court.

“These aggressive enforcement actions are necessary to protect consumers, so that they may have confidence in donating to true and worthy charities,” said AG Strange. “This case is a sad example, however, of how important it is to be aware of where your contributions are going and to research to ensure the integrity of charities.”