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DROPBOX Jall or a Settlement: Which Is More Appropriate for the Leaders of an Alleged Charity Scam? This challenge seeks your view of the consequences the courts or federal agencies should level against leaders who orchestrated an alleged charity scam. It all began when James T. Reynolds Sr. started the Cancer Fund of Amerka in 1987 Reynolds expanded the organization into four separate groups the other three were Cancer Support Services Children's Cancer Fund of America, and the breast Cancer Society. These organizations were run by Reynolds, members of his family, and people from his church congregation in Knoxville, Tennessee The charities raised about $200 million, and a federal lawsuit alleges they scammed consumers of some portion of 5187 million The New York Times reported the charities claim of spending "100 percent of proceeds on services like hospice care, transporting patients to and from chemotherapy sessions and buying pain medications for children. The lawsuit states, "These were lies, and that the charities spent about only percent on cancer patients Where did the money go NBC News noted that 85 percent of the more than $187 million the four grous raised went to professional fundraisers. Operators used much of the remaining donations to cover their salaries and personal expenses, including trips to Disney World, concert tickets and date site memberships The Times reported that other expenditures included meals at Hooters, products from Victoria's Secret, jet-skjoy rides, and cruises to the Caribbean The Federal Trade Commission, along with attomes general in all 50 states, filed lawsuit against the four charities, claiming they had violated federal and state laws. To date, Children's Cancer Fund of America and the Breast Cancer Society have arrived at a settlement and have been dissolved. Three of the organization's top executives-Rose Perkins, James Reynolds II, and Kyle Erfler settled the charges against them. They will be banned from fundraising, charity management and oversight of charitable assets. Judgments against the groups and their executives total $137 million,"wid will be redistributed to cancer patients. The FTC doubts that the full amount of fraudulently spent funds collectible, because defendants' bank accounts have insufficient money to cover A lawsuit is continuing against James Reynolds, St Cancer Funds of America and Cancer Suport Services Rather than admitting any wrongdoing, James T. Reynolds il sent a letter to supporters sung that neither the organization or any of its officers and directors were found guilty of any allegations. He goes on to say that it does not help those who we seek to serve and those who remain in need for us to engage na in publicited, expensive and distracting legal battle sound our fundraising practices." O 23 Solving the Challenge Do you think James T. Reynolds and his friends got off easy? What is your feeling about James Reynolds, Sr.? 1. I don't think the three executives who settled with the government are being punished to the full extent. They won't be able to pay back the fraud because they spent the money, and they are not going to jail. I think these people need to go to jail. 2. The settlements are a done deal. However, James Reynolds, Sr. is the senior leader of this alleged fraud, and he needs to go jail 3. In general, la fine with making settlements like this. It could be that the government has a weak case and a settlement is better than nothing. 4. Invent another option DROPBOX Jall or a Settlement: Which Is More Appropriate for the Leaders of an Alleged Charity Scam? This challenge seeks your view of the consequences the courts or federal agencies should level against leaders who orchestrated an alleged charity scam. It all began when James T. Reynolds Sr. started the Cancer Fund of Amerka in 1987 Reynolds expanded the organization into four separate groups the other three were Cancer Support Services Children's Cancer Fund of America, and the breast Cancer Society. These organizations were run by Reynolds, members of his family, and people from his church congregation in Knoxville, Tennessee The charities raised about $200 million, and a federal lawsuit alleges they scammed consumers of some portion of 5187 million The New York Times reported the charities claim of spending "100 percent of proceeds on services like hospice care, transporting patients to and from chemotherapy sessions and buying pain medications for children. The lawsuit states, "These were lies, and that the charities spent about only percent on cancer patients Where did the money go NBC News noted that 85 percent of the more than $187 million the four grous raised went to professional fundraisers. Operators used much of the remaining donations to cover their salaries and personal expenses, including trips to Disney World, concert tickets and date site memberships The Times reported that other expenditures included meals at Hooters, products from Victoria's Secret, jet-skjoy rides, and cruises to the Caribbean The Federal Trade Commission, along with attomes general in all 50 states, filed lawsuit against the four charities, claiming they had violated federal and state laws. To date, Children's Cancer Fund of America and the Breast Cancer Society have arrived at a settlement and have been dissolved. Three of the organization's top executives-Rose Perkins, James Reynolds II, and Kyle Erfler settled the charges against them. They will be banned from fundraising, charity management and oversight of charitable assets. Judgments against the groups and their executives total $137 million,"wid will be redistributed to cancer patients. The FTC doubts that the full amount of fraudulently spent funds collectible, because defendants' bank accounts have insufficient money to cover A lawsuit is continuing against James Reynolds, St Cancer Funds of America and Cancer Suport Services Rather than admitting any wrongdoing, James T. Reynolds il sent a letter to supporters sung that neither the organization or any of its officers and directors were found guilty of any allegations. He goes on to say that it does not help those who we seek to serve and those who remain in need for us to engage na in publicited, expensive and distracting legal battle sound our fundraising practices." O 23 Solving the Challenge Do you think James T. Reynolds and his friends got off easy? What is your feeling about James Reynolds, Sr.? 1. I don't think the three executives who settled with the government are being punished to the full extent. They won't be able to pay back the fraud because they spent the money, and they are not going to jail. I think these people need to go to jail. 2. The settlements are a done deal. However, James Reynolds, Sr. is the senior leader of this alleged fraud, and he needs to go jail 3. In general, la fine with making settlements like this. It could be that the government has a weak case and a settlement is better than nothing. 4. Invent another option