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Detailed text transcripts for TV channel - FOXNEWS - 20150520:14:27:00

Newsroom in atlanta. what did you find out? good morning. reporter: good morning to you, bill. the federal trade commission which is leading enforcement action says this is one of the biggest cases of charity fraud in u.s. history. ftc and officials from 50 states four related charities cancer fund of america, canser support services children s cancer fund of america and breast cancer society were all scram operations that scammed million of dollars from good-hearted folks. charities run from james reynolds sr. and james reynolds the ii. operated as personal fiefdoms, rampant nepotism and frank grant compensation. and donations were spent not on cancer patients mostly on cars, trips luxury cruises, college tuitions, gym memberships sporting events, concert tickets and dating site memberships. georgia s attorney general sam owens told me this operation was the worst of the worst. this is terrible. this is outright fraud. ....

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Detailed text transcripts for TV channel - FOXNEWS - 20150520:14:28:00

Taking from innocent folks. only 2.7% of the monies actually went for cancer help. this is about as bad as it gets. reporter: owens told me a few minutes ago he expected in addition to the civil action criminal charges will also be filed in this case. bill: what happens now or after that point john? reporter: well, two of the four charities have been shut down. the ftc reached a settlement agreement with three of the four principles. most of that money has already been spent. likely ftc will only get back a fraction of donations charities collected. in a statement, james reynolds the ii would not admit culpability. the officers and directors were not found guilty of any allegations of wrongdoing. the government has not proven otherwise. he added quote, giving back to the community is a mission that drives me. officials are still going after his father. they say they have got pretty much all the evidence they need, bill of all they need to do is get into court to shut down those oth ....

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CNN The Situation Room June 15, 2013 22:45:00

Cancer fund of america or don t remember getting a thing. the cancer fund also takes credit for serving as a middle man, brokering transfer of another $16 million worth of gifts in kind to individuals in other charities, many of them overseas. those contributions double up both as revenue and donations on the same tax forms. back at the cancer fund of america s corporate office, even the chief financial officer who, by the way, has a salary of $121,000, couldn t explain what was happening. we just have all these pacific medical center. never heard of you. yolanda barko oncology institute, nothing. that s one of the ones we looked up but again you have to talk to him. the him is james reynolds sr., the founder who finally told us in an e-mail his board thought it unwise to talk to cnn. even though in a different e-mail he called the news a ....

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CNN CNN Newsroom June 15, 2013 19:46:00

if you were asking us for money, what would you say you did with your money? we help children with cancer. reporter: how do you do that? what do you mean how do we do that? we help children with cancer. with he provide them financial assistance. if you have any other questions, please send them to her e-mail? reporter: my question is rose perkins did e-mail us and tell us her charity has a clear conscience, because we feel we are making a good difference in people s lives. but also told us an interview is not something we can consider. that may be because of the questions we d like to ask her and the other members of her extended family who are essentially making a living on your donations. the rose perkins, the ceo of the children s cancer fund, is paid $227,442 a year. her ex-husband, james reynolds sr., is president and ceo of ....

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CNN The Situation Room June 15, 2013 22:41:00

Mr. reynolds? hi. hi. can you stop a second? where you going, mr. reynolds? mr. reynolds? back in knoxville there is another cancer charity, the children s cancer fund of america. and this one, run by yet another member of the family. rose perkins. hi. is rose perkins in? she is not available and she is not doing any interviews. reporter: why wouldn t she do any interviews? she is running a charity here for kids with cancer, right? it seems like a good idea. it is. that s just what i ve been told to tell you, she is not doing interviews. reporter: can you tell us what you guys do, any positive things you do with the money you collect? reporter: you can send your questions to her e-mail. reporter: okay. what is that? and we will answer it rncht if you were asking us for money what would you say you did with your money? we help children with cancer. reporter: how do you do that? what do you mean how do we do that? we help children with cancer. reporter: yeah, how. ....

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