The president of two Tennessee-based cancer charities accused of spending donations on six-figure salaries and luxury vacations has agreed to relinquish control of the businesses.
In one of the largest cases of its kind, the Federal Trade Commission last year accused James T. Reynolds Sr. and others of engaging in a “massive, nationwide fraud” involving “sham charities.”
Court documents filed this month say Reynolds agreed to temporarily hand over control of Knoxville-based Cancer Fund of America and Cancer Support Services to a receiver while a settlement is pending.
The settlement will not be made public until after it is approved by all plaintiffs. That includes the attorneys general of all 50 states and the District of Columbia as well as the Federal Trade Commission.