North Carolina officials shut down a scam charity operation that claimed it was raising funds for women with breast cancer, but turned over less than one percent of the money it raised to the United Breast Cancer Foundation.
Attorney General Jeff Jackson said the majority of the $45 million raised by Kars-R-Us.com went to its operators, Michael Irwin and Lisa Frank. After seeing national TV, radio, and online ads, more than 84,000 people donated their cars to Kars.
The settlement also bans Michael Irwin from ever fundraising again, and bans Lisa Frank, who is Kars’ current president and sole owner, from making false fundraising claims.
The defendants also have a suspended judgment of nearly $4 million, which they will be required to pay if they are found to have lied to the FTC and state partners about their financial status.
