Cancer Charities Exec Stole $187 Million for Personal Use
Donors who have given money to four of the largest cancer charities in the United States may have unknowingly been financing the lavish lifestyle of the C.E.O. who runs them—paying for luxury cruises, elite gym memberships instead of treatment for cancer patients.
That’s according to a suit filed Tuesday by the Federal Trade Commission as well as attorneys general in all 50 states, which alleges that James Reynolds deceived and defrauded donors out of more than $187 million between four of his charities—including the Cancer Fund of America, Cancer Support Services, Children’s Cancer Fund of America and the Breast Cancer Society.
Related: Medicare Recovers Nearly $28 Billion in Fraud Since 1997
The complaint says that the scheme started in the 1980’s. The charities told donors via telemarketing calls that their money would go toward medicine and transportation for cancer patients. However, most of the money actually went toward Reynolds’ personal indulges.
The complaint says that between 2008 and 2012, only three percent of donations actually went to cancer patients.
The FTC also accuses the organizations of cooking their books and reporting inflated revenues as well as “gifts in kind” that they said they distributed internationally.
The FTC said two of the charities—the Children’s Cancer Fund of America and the Breast Cancer Society plan to settle the charges out of court. The Associated Press reported that the Breast Cancer Society, posted a statement on its website Tuesday blaming increased government scrutiny for the charity's downfall.
"While the organization, its officers and directors have not been found guilty of any allegations of wrongdoing, and the government has not proven otherwise, our board of directors has decided that it does not help those who we seek to serve, and those who remain in need, for us to engage in a highly publicized, expensive, and distracting legal battle around our fundraising practices," the statement said.
Several executives who were also involved in the sccheme, including Reynolds’ son, have agreed to a settlement, which bans them from working in fundraising or charities. The two charities that settled, Breast Cancer Society and the Children’ Cancer Fund of America will be dissolved.
The settlement also orders a $65,664,360 judgment, which is the amount consumers donated between 2008 and 2012. Reynolds junior’s judgment will be for suspended once he pays $75,000. Meanwhile the legal proceedings for Reynolds’ senior and the two remaining charities are ongoing.
Marco Rubio Says There’s No Proof Tax Cuts Are Helping American Workers
Sen. Marco Rubio (R-FL) told The Economist that his party’s defense of the massive tax cuts passed last year may be off base: “There is still a lot of thinking on the right that if big corporations are happy, they’re going to take the money they’re saving and reinvest it in American workers,” Rubio said. “In fact they bought back shares, a few gave out bonuses; there’s no evidence whatsoever that the money’s been massively poured back into the American worker.”
For Richer or Poorer: An Updated Marriage Bonus and Penalty Calculator
The Tax Policy Center has updated its Marriage Bonus and Penalty Calculator for 2018, including the new GOP-passed tax law. The tool lets users calculate the difference in income taxes a couple would owe if filing as married or separately. “Most couples will pay lower income taxes after they are married than they would as two separate taxpayers (a marriage bonus), but some will pay a marriage penalty," TPC’s Daniel Berger writes. “Typically, couples with similar incomes will be hit with a penalty while those where one spouse earns significantly more than the other will almost always get a bonus for walking down the aisle.”
Trump Administration Wants to Raise the Rent
Housing and Urban Development Secretary Ben Carson will propose increasing the rent obligation for low-income households receiving federal housing subsidies, as well as creating new work requirements for subsidy recipients. Some details via The Washington Post: “Currently, tenants generally pay 30 percent of their adjusted income toward rent or a public housing agency minimum rent not to exceed $50. The administration’s legislative proposal sets the family monthly rent contribution at 35 percent of gross income or 35 percent of their earnings by working 15 hours a week at the federal minimum wage -- or approximately $150 a month, three times higher than the current minimum.” (The Washington Post)
New Push for Capital Gains Tax Cut
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Bernie Sanders to Propose Plan Guaranteeing a Job for Every American
Sen. Bernie Sanders (I-VT) is preparing to announce a plan for the federal government to guarantee a job paying $15 an hour and providing health-care benefits to every American “who wants one or needs one.” The jobs would be on government projects in areas such as infrastructure, care giving, the environment and education. The proposal is still being crafted, and Sanders’ representative said his office had not yet come up with a cost estimate or funding plan. Sen. Kirsten Gillibrand (D-NY) last week tweeted support for a federal jobs guarantee, but Republicans have long opposed such proposals, saying they would cost too much. (Washington Post)