Attorney General Gentner Drummond has called time on what he describes as a "deceptive charity fundraising scheme" that claimed to raise money for breast cancer screenings but apparently spent only a fraction of the funds on the promised services. In partnership with the Federal Trade Commission (FTC) and other state agencies across 19 states, Drummond has reached a proposed settlement with Kars-R-Us.com and its operators, Michael Irwin and Lisa Frank, according to the Oklahoma Attorney General's Office.
Despite pulling in more than $45 million from donors nationwide, the complaint alleges that just $126,815, or 0.28 percent, of those funds were actually used for breast cancer screenings. "I will not allow fraudsters to misrepresent the truth and exploit the generosity of Oklahomans for self-gain," Drummond said in an statement obtained by the Oklahoma Attorney General's Office. As for the remaining funds, reports found that most were funneled into Kars, its operators, vendors, and UBCF's CEO's compensation.
Under the proposed settlement conditions, Irwin is permanently banned from fundraising, while Frank and the charity face stringent restrictions on their future fundraising activities. Kars solicited vehicle donations through various media channels, falsely claiming donations would help UBCF to "save lives" through essential cancer screenings. The FTC found that over 84,000 individuals donated vehicles under these pretenses, as reported by the Oklahoma Attorney General's Office.
The settlement also imposes financial consequences on the responsible parties, with a judgment of $3,882,091. This figure is partially suspended due to their claimed inability to pay in full. However, should it be determined that they misrepresented their financial situation to the FTC and the state partners, the full judgment will be due immediately. The complaint indicated that Kars, Irwin, and Frank should have known their claims were either deceptive or unsubstantiated, as noted by the Oklahoma Attorney General's Office.
Joining the case against the questionable fundraising practices were attorneys general and various consumer protection agencies from states including Arkansas, California, and New York, among others. The unanimous Commission vote and subsequent filings in the U.S. District Court for the Central District of California underscore the seriousness with which this alleged scheme has been met by regulatory bodies seeking to protect consumers and the integrity of charitable giving, as per the Oklahoma Attorney General's Office.
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