Federal officials are in the process of reaching a settlement with a Tennessee family who allegedly operated several fraudulent charities and used the funds to live large. The Associated Press reports that the family would “buy themselves cars, gym memberships and take luxury cruise vacations, pay for college tuition and employ family members with six-figure salaries.”

The Federal Trade Commission said on Tuesday that the charities, which were run by James T. Reynolds Sr, his ex-wife Rose Perkins, and their son, James T. Reynolds II, sent very little money to actual cancer patients, instead funneling the cash back into the family’s pockets and lavish lifestyles. From the AP report:

The joint action by the Federal Trade Commission and the states says James T. Reynolds Sr., his ex-wife and son raised the money through their various charities: 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.

The charities hired telemarketers to collect $20 donations from people across the country, telling consumers that they provided financial aid and other support to cancer patients, including pain medication, transportation to chemotherapy visits and hospice care.

Litigation is currently ongoing in the case, but the FTC claims that no one who donated should expect to get their money back because it’s almost all gone. While the Tampa Bay Times documented Reynolds’ shady charities in 2013, officials said the case’s complexities didn’t prevent the charities from operating at the time.

How will the people associated with the case be punished? Perkins, the younger Reynolds, and Kyle Effler, a long-time family friend, won’t have to pay out that much because sometimes the world is unjust:

The settlement agreement imposed hefty judgments based on the amount of money donated to the charities between 2008 and 2012. But because of Perkins’ “inability to pay,” her $30 million judgment would be suspended entirely. The $65.5 million judgment against Reynolds II would be suspended after he pays $75,000.

Effler, former president of Cancer Support Services, faced a $41 million judgment that would be forgiven after paying $60,000.

Don’t want to get scammed? This article is a good resource for picking a charity that isn’t going to spend your cash on cars and vacations.


Image via Facebook. Contact the author at dayna.evans@gawker.com.