OKLAHOMA CITY (KFOR) – Oklahoma Attorney General Gentner Drummond announced on Monday, his office has ended a deceptive cancer charity fundraising scheme.
According to the AG’s office, operators with Kars-R-Us.com and its operators Michael Irwin and
Lisa Frank solicited charitable donations nationwide on behalf of the United Breast Cancer Foundation (UBCF), to assist individual with breast cancer.
Drummond alongside the Federal Trade Commission (FTC) and 21 other state agencies from 19 states reached a proposed settlement in which Kars and its operators face restrictions on future fundraising activities.
The AG’s office says, Irwin, Kars’ president and co-owner will be permanently baned from fundraising.
The complaint Drummond’s office alleges said, Kars, Irwin, and Frank knew or should have known the claims regarding breast cancer on behalf of UBCF was deceptive.
“I will not allow fraudsters to misrepresent the truth and exploit the generosity of Oklahomans for self-gain,” Drummond said. “I’m pleased this proposed settlement helps to protect future donors from schemes such as this one.”
Kars solicited vehicle donations through national and local TV, radio and online ads in English and Spanish, raising more than $45.5 million between 2017 to 2002 on behalf of UBCF. In addition, the complaint alleges $34.9 million raised funds went to pay Kars, its operators, and its vendors.
Irwin, Frank and Kars additionally face a monetary judgment of $3,882,091, which has been partially suspended due to their inability to pay the full amount, Drummond’s Office said. However, if Kars, Frank and Irwin are found to have lied to the FTC and state partners about their financial status, the AG’s office says the total judgment will be required to be paid immediately.
Other state agencies joining the case include the attorneys general of Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Maryland, New York, North Carolina, Oregon, Utah, Virginia, West Virginia and Wisconsin as well as the secretaries of state of Maryland, North Carolina and South Carolina; and the Utah Division of Consumer Protection.
Click to read the full complaint and the proposed order.
Consumers who wish to donate safely can find tips for charitable donors here.
