(The Center Square) – Less than three-tenths of 1% of $45 million in breast cancer fundraising, says North Carolina’s secretary of state and attorney general, was actually going where advertised by Kars-R-Us.com.
Thursday, eighth-term Democratic Secretary of State Elaine Marshall and first-term Democratic Attorney General Jeff Jackson said the litigation in California they joined has finishing shutting down the scam via a settlement. More than 84,000 people across the country donated cars, believing it benefitted the United Breast Cancer Foundation’s free and low-cost breast cancer screenings.
Prosecutors say nearly $35 million went to California-based Kars, its operators and its vendors.
The total involving the Tarheel State was not made available. Activities happened between 2017 and 2022 in 19 states.
“When North Carolina’s giving public is misled, people in need suffer and consumers can lose confidence in giving to the many great charities working so hard every day to help those in need,” Marshall said. “So I was honored to stand with AG Jackson, the FTC, and state charities regulators and attorneys general across the nation in securing this settlement.”
The case was known as Federal Trade Commission and the States of Arkansas; California; Colorado; Connecticut; Delaware; Florida; Georgia; Illinois; Indiana; Maryland; New York; North Carolina; Oklahoma; Oregon; South Carolina, Utah; Virginia; West Virginia; and Wisconsin v. Kars-R-Us.com Inc., Michael Irwin, Lisa Frank. Frank, 45, is president and owner of the company, the 75-year-old Irwin an officer and former co-owner with Frank; and each is barred from fundraising ever again. Kars has to substantiate any claims it makes about fundraising and not make deceptive claims, the ruling says.
Defendants have a suspended judgment of nearly $4 million.
