Attorney General Sam Olens Settles Against Sham Cancer Charities

Announced in a press release, Georgia’s Attorney General Sam Olens, along with the Federal Trade Commission and agencies from every US state, was granted a permanent injunction to disband two nationally-operated sham cancer societies on March 30, 2016.

The now dissolved societies, Cancer Fund of America Inc. (CFA) and Cancer Support Services Inc. (CSS), operated under the leadership of James Reynolds, Sr.  Filed in court on Wednesday, the injunction also bans Reynolds from profiting from all future charity fundraising.

The settlement also involves the chief financial officer of CFA and CSS, Kyle Effler, Children’s Cancer Fund of America Inc. (CCFOA) and its president and executive director, Rose Perkins, and The Breast Cancer Society Inc. (BCS) and its executive director and former president, James Reynolds II. The settlement bans Effler, Perkins and Reynolds from charity management, fundraising, and oversight of charitable assets. CCFOA and BCS are currently in receivership and will be dissolved after their assets are liquidated.

Charities operating under Reynolds and his family members profited with over $187 million of donation money. Approximately $75 million is attributed to CFA and CSS, with the remaining funds coming from two other charities run by the family. The two other sham charities settled in May 2015.

“Today, joining forces with federal and state partners, we have put an end to an egregious and extensive charity fraud scheme which claimed to assist children with cancer and breast cancer patients,” said Olens. “These so-called charities took advantage of the generosity of others to fund their lavish lifestyles.”

The settlement marks the close of the largest cooperative enforcement action ever undertaken by the FTC and state charity regulators.