America’s second-worst charity agrees to shut down

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Remember Cancer Fund of America?

It came it at No. 2 on the list of America’s Worst Charities in 2013, when Tampa Bay Times, The Center for Investigative Reporting and CNN teamed up to find the most wasteful charities in the country.


Now, after years under federal investigation, it looks like Reynolds will shut his Knoxville, Tennessee-based charity down.

Citing documents filed in U.S. District Court in Phoenix, CNN reported last night that Reynolds has agreed to go out of business and allow the charity he started to be operated by a court-appointed receiver for the time being.

The agreement, which still must be approved by state officials, stems from a civil complaint filed last May by the Federal Trade Commission in concert with attorneys general in all 50 states. That complaint accused Reynolds and some of his family members of building a network of “sham charities” designed to enrich officers at the expense of sick women and children.

According to the complaint, donations intended for the sick paid for “extravagant insider benefits,” including cars, college tuition, gym memberships, concert tickets, a Caribbean cruise and trips to Las Vegas and other touristy locales.

“Some charities send children to Disney World,” South Carolina Secretary of State Mark Hammond said at a Washington D.C. news conference when the complaint was announced. “These charities sent themselves to Disney World.”

According to the complaint, Cancer Fund and other affiliated charities raised $187 million over four years, yet spent almost 90 percent of the contributions on for-profit telemarketers and the “steady lucrative employment” of Cancer Fund founder James Reynolds Sr., his ex-wife, his son and dozens of members of their extended family.

https://www.revealnews.org/blog/americas-second-worst-charity-agrees-to-shut-down/