March 30th, 2016 by WCBC Radio
Secretary of State John Wobensmith and Attorney General Brian Frosh announced today that Maryland, working with the Federal Trade Commission and representatives of each state and the District of Columbia, has dissolved two sham cancer charities and have banned their president from profiting from any charity fundraising in the future.
“Together, the FTC and state charity regulators across the country presented a united front against charity fraud and put an end to these sham charities,” said Secretary Wobensmith. “We will not sit idly by while scammers defraud consumers and deprive legitimate charities of much needed support for Maryland citizens.”
Cancer Fund of America Inc. (CFA), Cancer Support Services Inc. (CSS) and their leader, James Reynolds, Sr., agreed in court documents filed yesterday to settle charges that the organizations claimed to help cancer patients, but instead spent the overwhelming majority of donations on trips, gifts and salaries for operators, families, and friends, as well as on fundraising activities.
“We are sending a clear signal that we won’t tolerate this kind of deception and egregious lies,” Frosh said. “For those who are generous enough to give and help others, we will be here for you to make sure that your good intentions are fulfilled.”
Under the settlement order, CFA and CSS will be permanently closed and their assets liquidated. Reynolds is banned from profiting from charity fundraising and nonprofit work, and from serving as a charity’s director or trustee or otherwise managing charitable assets.
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