'Sham' cancer charities agree to $76M judgment, dissolution

Friday, March 25, 2016, Vol. 40, No. 13

NASHVILLE (AP) - Two Tennessee-based cancer charities labeled "shams" by the Federal Trade Commission have settled a massive fraud case, along with their president, by agreeing to a $75.8 million judgment and the dissolution of the businesses.

The joint action by the FTC and all 50 states says James T. Reynolds Sr. and others spent donations meant for cancer patients on six-figure salaries and luxury vacations.

The settlement with Reynolds, Cancer Fund of America and Cancer Support Services was filed Wednesday in federal court in Arizona. It must be signed by the judge before it takes effect.

Reynolds' son and ex-wife previously agreed to settlements involving two related charities. The former president of Cancer Support Services also settled earlier.

Together, the four charities raised more than $187 million between 2008 and 2012.