€168m charity funds squandered in US

A Tennessee man and his family used much of the $187m (€168m) it collected for cancer patients to buy themselves cars, and take luxury cruise holidays, pay for college tuition and employ family members with six-figure salaries, federal officials have alleged in one of the largest charity fraud cases ever, involving all 50 states.

The joint action by the Federal Trade Commission and the states says James T Reynolds Sr, his ex-wife and son raised the money through their various charities: 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 hired telemarketers to collect $20 donations from people across the country, telling consumers they provided financial aid and other support to cancer patients, including pain medication, transportation to chemotherapy visits and hospice care.