Bogus charities accused of wasting donations for cancer victims

They collected tens of millions of dollars claiming to help cancer victims.

But much of the money was instead wasted on cruises, Jet Ski outings, concert tickets and dating site memberships.

Now the four charities — Cancer Fund of America, Children's Cancer Fund of America, Cancer Support Services and The Breast Cancer Society — are the target of a federal complaint alleging that they "scammed more than $187 million from consumers throughout the country," according to Attorney General Greg Zoeller.

The complaint alleges the donations raised by the organizations between 2008 and 2012 "were wasted and misused, cancer victims were not helped and the representations that defendants were legitimate charities were false," Zoeller said in a statement issued Tuesday by his office.

"Taking advantage of the compassion and charitable nature of people is reprehensible. Hopefully, our actions today will raise awareness of legitimate charities where donations are truly used for the benefit of cancer patients," Zoeller said.

"Fortunately in Indiana consumers can view fundraising activity and I would encourage everyone to do so before giving to any charity."

Zoeller joined attorneys general and law enforcement partners in all 50 states and the District of Columbia as well as the Federal Trade Commission in announcing a settlement in the case.

The federal complaint alleges that Cancer Fund of America, Children's Cancer Fund of America, Cancer Support Services and The Breast Cancer Society all portrayed themselves to donors as legitimate charities with substantial nationwide programs whose primary purposes were to provide direct support for cancer patients, the statement said.

Instead, the entities were "sham charities," the complaint alleges. The groups "hired family members and friends, whether qualified or not, and used the organizations to provide them with steady, lucrative employment," the statement said.

"The charities spent more money on salaries than on the goods and services they provided cancer patients."

The statement said two of the charities and five defendants agreed to a $137 million settlement. Distribution of those funds is pending court approval. Under terms of the settlement, the Children's Cancer Fund and Breast Cancer Society will be dissolved.

"This settlement highlights the importance of doing research on charitable organizations to ensure your money is being put to the purpose you intended," Zoeller adds.

"There are many reputable charities and we must remember they rely on donations. The law requires these charities to maintain accurate financial records of their activities, and most will furnish such information upon your request."

Tim Evans is The Star's consumer advocate. Call him at (317) 444-6204 and follow him on Twitter: @starwatchtim