The Shadow
RICHMOND, Va. (VR) – Attorney General Jason Miyares today announced that his office, along with the Federal Trade Commission and 18 other states, has shut down a deceptive charity fundraising scheme and its operators who made false or deceptive claims to donors. This resolution restricts future fundraising and secures $550,000 for distribution to cancer-related charities.
Kars-R-Us.com, Inc. (Kars) and its operators solicited charitable donations nationwide on behalf of United Breast Cancer Foundation, Inc. (UBCF), a charity that claims to assist individuals affected by breast cancer, according to a complaint filed by Virginia, the FTC and other states. Kars claimed that vehicle donations would allow UBCF to “save lives” by providing free and low-cost breast cancer screenings. In reality, however, only $126,815 or 0.28% of the more than $45 million that Kars raised was used to provide breast cancer screenings, the complaint alleges.
Under a proposed settlement order reached by Attorney General Miyares and his federal and state enforcement partners, Kars’s President will be permanently banned from fundraising and Kars and its operators will face meaningful restrictions on future fundraising activities.
“I am pleased that we were able to stop this deceptive and unlawful charitable solicitation scam,” said Attorney General Jason Miyares. “This organization exploited the generosity of thousands of Americans and Virginians who donated in good faith to support cancer patients and screenings. My Office will continue to fight to hold bad actors accountable and protect Virginians from charitable scams.”
Kars solicited vehicle donations through national and local TV, radio and online ads claiming the donations would allow UBCF to “save lives” by providing free and low-cost breast cancer screenings. Kars tugged at donors’ heartstrings to maximize contributions with little regard for truthfulness or accuracy of the claims it made on behalf of UBCF, the complaint alleges. More than 84,000 well-intentioned people donated their vehicles to Kars.
Between 2017 to 2022 Kars raised more than $45.5 million on behalf of UBCF. The complaint alleges that $34.9 million of those raised funds went to pay Kars, its operators, and its vendors. Of the tiny fraction of funds left to UBCF, most were largely used for other purposes, including generous compensation to UBCF’s CEO.
The states joining Attorney General Miyares and the FTC in this case include Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Maryland, New York, North Carolina, Oklahoma, Oregon, South Carolina, Utah, West Virginia, and Wisconsin. The settlement has been filed for approval with the United States District Court for the Central District of California.
