Tennessee Family Accused for Spending Over $187 Million Collected For Cancer Charities

Tennessee Family Accused for Spending Over $187 Million Collected For Cancer Cha

The Federal Trade Commission (FTC) under a joint action with attorneys general on Tuesday accused a Tennessee family for spending over $187 million fund that was collected for cancer charities on cars, gym memberships cruise vacations, and college tuition.

The FTC, under a federal lawsuit joined by each of the 50 states and the District of Columbia, stated that James T. Reynolds Sr., his ex-wife and his son raised the fund through their various charities.

Tennessee family's charities included, 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.

It was found that all these charities hired telemarketers to collect $20 donation from people across the country.

These telemarketers told people they by making donation they are providing financial help and other support to cancer patients including pain medication, transportation to chemotherapy visits and hospice care.

The FTC said on Tuesday that very little money reached cancer patients, as the group operated as personal fiefdoms characterized by rampant nepotism.

Jessica Rich, director of the FTC's Bureau of Consumer Protection did not give any details whether authorities were pursuing a separate criminal investigation against the Reynolds family.

Rich in her comment regarding the issue stated the agency did not have the authority to do so.

It was found that settlement agreements have already been made with Reynolds's son James II, who oversaw The Breast Cancer Society; Kyle Effler, a long time associate of the Reynolds family and the former President and CFO of Cancer Support Services, and Reynolds Sr.'s ex-wife Rose Perkins, who ran the Children's Cancer Fund of America.

The litigation is still pending against James T. Reynolds Sr., the Cancer Fund of America, and Cancer Support Services.