Charity Scam That Raised $175 Million in Cancer Donations Draws Oregon Into Legal Fight

The Oregon Department of Justice (ODOJ) has joined the Federal Trade Commission (FTC) and 18 other states to stop the Kars fundraising scheme.

Michael Irwin and Lisa Frank, operating under the United Breast Cancer Foundation, Inc. (UBCF), raised nearly $175 million through cash and car donations, claiming the funds would support breast cancer screening.

However, the majority of these funds were not used for cancer-related causes.

Oregon Joins Lawsuit To End Cancer Scheme That Raised Millions In Cash And Car Donations

The lawsuit, filed by the FTC, alleges that since at least 2012 and until at least May 2023, Irwin and Frank provided fundraising services to UBCF. This New York-based organization claims to assist individuals affected by cancer nationwide.

In reality, according to the court documents, UBCF used only a tiny fraction of the millions it collected from donors to provide free and low-cost breast screening services. Between 2017 and 2022, UBCF’s filings to the IRS (Form 990s) indicate that UBCF raised approximately $174.4 million in total revenue but only $393,644 – less than 0.23% – on breast screening services.

Kars also solicited vehicle donations through national and local TV, radio, and online ads in English and Spanish, claiming the donations would allow UBCF to “save lives” by providing free and low-cost breast cancer screenings.

To maximize contributions with little regard for truthfulness or accuracy, their claims on behalf of UBCF, Kars tugged at donors’ heartstrings.

Over 84,000 well-intentioned people donated their vehicles to Kars. Of the total amount of nearly $45 million they raised, Kars spent only $126,815, or 0.28% providing breast cancer screenings.

Oregon Attorney General Dan Rayfield said, “Most Oregonians give from the heart, and it’s shameful that scammers exploited that generosity under the guise of helping people with breast cancer.”

In the lawsuit, a settlement order proposed by the FTC and its partners stipulates that Kars and its operators will be restricted in future fundraising activities. Irwin, Kars’s President and co-owner until 2022, will be permanently barred from fundraising. Additionally, Kars and Frank are required to substantiate all fundraising claims.

Irwin, Frank, and Kars also face a total monetary judgment of $3,882,091, which is partially suspended because of their inability to pay the full amount. If Kars, Frank, and Irwin are found to have lied to the FTC and state partners about their financial status, the full judgment will be immediately payable.