Attorney General Chris Carr, along with the Federal Trade Commission (FTC) and 21 agencies from 18 different states, has shut down a deceptive charity fundraising scheme and its operators, who are accused of retaining millions of dollars donated for breast cancer screenings.
For context, Kars-R-Us.com (Kars) and its operators, Michael Irwin and Lisa Frank, solicited charitable donations nationwide on behalf of United Breast Cancer Foundation (UBCF), and claimed to assist individuals affected by breast cancer.
Kars solicited vehicle donations through television, radio, and online ads, making emotional appeals to maximize contributions with little regard for the truthfulness of their claims. More than 84,000 well-intentioned people donated their vehicles to Kars.
According to a complaint filed by the FTC, Kars claimed that vehicle donations would allow UBCF to “save lives” by providing free and low-cost breast cancer screenings. The complaint alleges, however, that only $126,815 or 0.28 percent of the more than $45 million that Kars raised was used to provide those screenings.
This became relevant for Carr because Georgia was the tenth largest donor state with a total of 1,992 donated cars valued at over $908,000.
Georgia, the FTC, and other state partners have proposed a settlement order that Kars and its operators will face restrictions on future fundraising activities. Irwin, Kars’ president and co-owner, will also be permanently banned from fundraising.
Carr commented on the serious nature of this case and the unbelievable reality that someone would fraudulently solicit donations for something like breast cancer detection.
“Schemes like this prey on kind-hearted Georgians and take away from legitimate charities that are working to support patients and survivors,” he argued. “We took action against those responsible, and we will keep fighting to protect consumers throughout our state.”
Christopher Mufarrige, the Director of the FTC’s Bureau of Consumer Protection, also commented on the serious nature of this case, hoping that this will deter similar attempts.
“This case should send a strong message to fundraisers that the FTC will take action if they misrepresent the truth and exploit the kindness of generous donors for their own gain,” Mufarrige stated. “We are grateful to our state partners for joining this effort to protect the public from fundraising schemes like this one.”
