Mar 30, 2016 2:05 PM
NH settles claims against 2 nationwide cancer charities for bilking more than $75 million
CONCORD - Two nationwide cancer charities have been federally closed down after claiming to help cancer patients, but instead spent donor money for their own personal uses.
The Charitable Trusts Unit of the Department of Justice along with the Federal Trade Commission, have banned the charities of Cancer Fund of America Inc. (CFA) and Cancer Support Services Inc. (CSS) along with their leader James Reynolds, Sr., from profiting from any charity fundraising in the future under a settlement filed in court Wednesday.
A complaint filed in May 2015 targeted four sham charities run by Reynolds and his family members that allegedly bilked more than $187 million from donors, where CFA and CSS were responsible for more than $75 million of that amount.
Under the settlement order, CFA and CSS will be permanently closed and will liquidate their assets. Reynolds is banned from profiting from charity fundraising and nonprofit work.
The order imposes a judgment against CFA, CSS and Reynolds, of $75,825,653, which is the amount consumers donated to the charities between 2008 and 2012.