Reynolds Family Raised $187 Million For Cancer Fund Of America, Spends It On Themselves
The FTC says the Reynolds family raised $187 million for their “charity” called the Cancer Fund of America, but instead of spending the money on dying cancer patients they spent all of it on luxury cars, cruises, college, and six figure salaries.
In a related report by the Inquisitr, a woman who lied about having incurable cancer was interviewed by Dr. Phil, and she admitted she did it to get attention and steal donation money.
The Federal Trade Commission (FTC) took action against James T. Reynolds Sr., his ex-wife, and son since the family raised $187 million only to blow it all on themselves. The cancer fraud included The Cancer Fund of America in Knoxville, Tennessee, and its affiliated Cancer Support Services; The Breast Cancer Society in Mesa, Arizona; and the Children’s Cancer Fund of America in Powell, Tennessee.
The charities claimed to providing financial aid, pain medication, and other aid to dying cancer patients. In reality, very little of the $187 million made it to cancer patients since the organizations “operated as personal fiefdoms characterized by rampant nepotism, flagrant conflicts of interest, and excessive insider compensation” according to the FTC. It is said that professional fundraisers were hired to raise money, and 85 percent of the donations went to them. Out of the remaining 15 percent, much of it was spent on “cars, trips, luxury cruises, college tuition, gym memberships, jet ski outings, sporting event and concert tickets, and dating site memberships.”
The Breast Cancer Society ceased operations and a statement, which was apparently written by Reynolds’ son, James T. Reynolds II, blamed the government for the charity going under.
“While the organization, its officers and directors have not been found guilty of any allegations of wrongdoing, and the government has not proven otherwise, our board of directors has decided that it does not help those who we seek to serve, and those who remain in need, for us to engage in a highly publicized, expensive, and distracting legal battle around our fundraising practices,” the statement read, according to the Deseret News.
Even though the family raised $187 million over time, Jessica Rich, director of the FTC Bureau of Consumer Protection, says, “The money is mostly gone.” The FTC declined to say whether or not a criminal investigation is underway, noting that the FTC does not have this authority.
As it is the judgments against the Reynolds family will recoup very little. According to U.S. News And World Report, the ex-wife, Rose Perkins, cited the “inability to pay” and her $30 million judgment will be suspended entirely. The $65.5 million judgement against the son will be settled for $75,000. A friend of the family, Kyle Effler, also faced a $41 million judgment but he is being forgiven for only $60,000.
[Image via Google Images]
