A sweeping crackdown on a bogus breast cancer fundraising operation has been helmed by Attorney General Kwame Raoul who along with the Federal Trade Commission (FTC) and law enforcement partners across 17 states, have moved to put a stop to a deceptive scheme that duped donors nationwide. The charity in question, Kars-R-Us.com Inc., under the pretense of aiding the United Breast Cancer Foundation (UBCF), is accused of using national advertising campaigns to misguide kindhearted donors into believing their vehicle donations would fund cancer screenings and support those affected by breast cancer.
The reality, however, was starkly different. According to a statement obtained by the Illinois Attorney General's office, a mere 0.28% of the more than $45 million raised by Kars was actually used for breast cancer screenings – that's about $126,815. The collective effort of donors amounted to some 84,000 donated vehicles, including around 3,000 from Illinois; however, it appears the overwhelming majority of this charity did little to 'save lives' as was promised.
In terms of consequences, Michael Irwin and Lisa Frank, the operators of Kars-R-Us, are facing significant restrictions on their ability to engage in future fundraising activities. More specifically, Irwin, Kars's president until 2022, will be banned permanently from fundraising activities. Frank, who took over as president, and Kars itself are also restrained from making any deceptive claims linked to fundraising efforts in the future.
These actions form part of a proposed settlement order that includes a monetary judgment against the defendants to the tune of $3,882,091. This sum, however, is partially suspended, given their reported inability to pay the full amount. If it turns out they've been less than truthful about their financial situation, the whole amount will become due immediately. Kristin Louis from the Charitable Trust Bureau is overseeing the case for Attorney General Raoul's office,
The message is clear: exploit the generosity of the public at your peril. "This case should send a strong message to fundraisers that the FTC will take action if they misrepresent the truth and exploit the kindness of generous donors for their own gain," said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, as mentioned in an official release. With the support of attorneys general from various states, as well as secretaries of state and consumer protection divisions, this coalition demonstrates a no-tolerance stance against deceptive charitable solicitation.
