Breast Cancer Society Shuts Down Following Fraud Allegations

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May 21, 2015 06:30 AM EDT

The Breast Cancer Society is shutting down due to fraudulence accusations; three ther American non-profit organizations are accused of charity scams.

The Breast Cancer Society has been slapped down with a lawsuit and is being shut down by the Feds since it allegedly only used three percent of its earning to help cancer patients, AZ Central has learned.

James Reynolds II, affiliate and director of the Mesa-based nonprofit organization, has agreed to close down the Breast Cancer Society. Reynolds is now legally prohibited from managing and overseeing charitable assets and fundraising as stated by the Federal Trade Commission.

The lawsuit was filed Monday in the District Court in Phoenix, and it alleges that $187 million over 5 years was pocketed from the combined donors of the Breast Cancer Society, the Cancer Fund of America, the Children's Cancer Fund of America, and Cancer Support Services, CNN reports.

According to Western Journalism, the four cancer nonprofits were operated by the members of the same family: James Reynolds, Sr. manages the Cancer Support Services and Cancer Fund of America, son James Reynolds, Jr. manages the Breast Cancer Society, while ex-wife of Sr. Reynolds, Rose Perkins, manages Children's Cancer Fund of America.

"Donated funds were used to pay for vehicles, personal consumer goods, college tuition, gym memberships, Jet Ski outings, dating website subscriptions, luxury cruises, and tickets to concerts and professional sporting events," the complaint said.

The donations were reportedly solicited by phone, direct mail, and via websites with the promise that the money donated will be used in helping cancer patients. According to the Wall Street Journal, the money donated from 2008 to 2012 was used to pay telemarketing companies and operators of the charities, the rest of the money was kept for themselves.

Out of the four accused charities, the website of The Breast Cancer Society remains active, and it currently features a letter from Reynolds Sr.

"Charities - including some of the world's best-known and reputable organizations - are increasingly facing the scrutiny of government regulators in the U.S. The Breast Cancer Society (TBCS) is no exception. Unfortunately, as our operations expanded - all with the goal of serving more patients - the threat of litigation from our government increased as well," the letter read.

"While the organization, its officers and directors have not been found guilty of any allegations of wrong doing, and the government has not proven otherwise, our Board of Directors has decided that it does not help those who we seek to serve, and those who remain in need, for us to engage in a highly publicized, expensive, and distracting legal battle around our fundraising practices."

Litigation will continue against Reynolds Sr., the Cancer Fund of America and Cancer Support Services. The other charities, The Breast Cancer Society and the Children's Cancer Fund of America, will be shut down, as per the settlement.

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