The Federal Trade Commission announced Wednesday that a pair of nonprofits accused of misusing tens of millions of dollars raised through deceptive solicitations have formally agreed to permanently shut down and have their assets liquidated, reports The Washington Post.
The settlement closes out the case brought by the FTC and attorneys general in all 50 states last year against the cancer-charity network led by James Reynolds Sr. In a statement, the FTC said the "overwhelming majority" of more than $75 million raised by the Cancer Fund of America and Cancer Support Services benefited the groups' organizers and their associates, with less than 5 percent going to help patients.
Under the deal, Mr. Reynolds is banned from ever managing charitable assets or serving as a trustee or board member. Two other charities in the largely family-operated network, the Children’s Fund of America the Breast Cancer Society, agreed to close last year after federal and state authorities charged the four groups with collectively bilking some $187 million from donors.