The state attorney general's office and state secretary of state's office announced on Wednesday that they participated in a national $75.8 million settlement with two charities that they says bilked donors out of money meant to help cancer patients.
The money instead mostly went to fundraisers and operators, as well as family members and friends of Cancer Fund of America Inc. (CFA), Cancer Support Services Inc. (CSS), and their leader, James Reynolds Sr., according to a news release from state Attorney General Patrick Morrisey's office.
According to a release from state Secretary of State Natalie Tennant's office, more money was spent on salaries, cruises, jet ski outings and concert tickets than on goods and services for cancer patients.
The settlement requires the charities to close and to pay $75.8 million. The settlement order also bans Reynolds from profiting from charity fundraising.
All 50 cities and the Federal Trade Commission reached the settlement with the charities. The state attorney general's office represented the secretary of state's office.
The complaint, filed in May of 2015, alleged that four charities swindled more than $187 million from donors, more than $75 million of which was collected by CFA and CSS.
According to the news release, the settlement is the largest joint enforcement action ever undertaken by the FTC and state charity regulators. The two other charities accused of fraudulent activity are the Children's Cancer Fund of America and The Breast Cancer Society. Each chose to settle in the case against them and pleaded guilty in a plea agreement, according to the release from Tennant's office.