The US Federal Trade Commission (FTC) is prosecuting what may be the largest cases of charity fraud in the country’s history.

Four organisations are alleged to have ripped off cancer patients to the sum of $236 million (US $187 million) between 1987 and 2012.

Enforcement officials from all 50 US states have worked with the US FTC to trace the elaborate flow of donations, finding 85 per cent of it ended up in the pockets of directors, their families and friends, and the fundraisers.

“This is one of the largest actions brought to date by enforcers against charity fraud,” said an FTC statement.

The organisation advertised donations would be used to pay for cancer patients’ medical bills and medication. But most of the money was swindled away to be used “for lucrative employment for mainly members and friends.”

The siphoned funds, it will be alleged, were used to pay for cars, expensive travel, college tuition, gym memberships at exclusive spas, recreational outings, sporting events and concert tickets – even for meals at Hooters and memberships to internet dating sites.

As stated above, the fundraisers were deemed to have siphoned off 85 per cent of every donation.

Prosecutors allege they hid the fraud by inflating the revenue through in-kind donations. These donations (amounting to more than $282 million – $US223 million) were made in other countries and declared as income when they were only, in-fact, passing through agents set up for the purpose of the fraud.

In the end only a mere 3 per cent of all donations made it to their advertised recipients – cancer sufferers.

The organisations at the centre of the controversy are: The Cancer Fund of America (CFA), Cancer Support Services (CSS), the Children’s Cancer Fund of America (CCFOA), and the Breast Cancer Society (BCS).

About The Author

Someone you can depend on to respect you and care for your dog. Let me help you give your dog the life it deserves.

Leave a Reply

Your email address will not be published.