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December 17, 2015

Cancer Charity That Raised $10 Million Admits Bogus Claims

A Brooklyn-based leukemia charity accused of inflating claims about its work to raise millions of dollars will dissolve under a settlement with New York state authorities, the Forward reports. The National Children's Leukemia Foundation acknowledged that donor pitches touting its bone-marrow registry, cancer-research center in Israel, and grant-a-wish program for young patients were exaggerated or false.

Rather than supporting such programs, 85 percent of the $9.7 million the group collected from 2009 to 2013 was plowed back into fundraising campaigns, according to the settlement announced Wednesday by state Attorney General Eric Schneiderman, whose office sued the charity in July. The organization agreed to repay $380,000, and its founder, Zvi Shor, will be barred from serving as an officer or director of any nonprofit that raises money in the United States.

Read a Chronicle of Philanthropy article on New York State's crackdown on suspect nonprofits.