NASHVILLE, Tenn.—The president of two Tennessee-based cancer charities accused of spending donations on six-figure salaries and luxury vacations has agreed to relinquish control of the businesses.
In one of the largest cases of its kind, the Federal Trade Commission last year accused James T. Reynolds Sr. and others of engaging in a “massive, nationwide fraud” involving “sham charities.”
Court documents filed this month say Reynolds agreed to temporarily hand over control of Knoxville-based Cancer Fund of America and Cancer Support Services to a receiver while a settlement is pending.
Four charities raised more than $187 million between 2008 and 2012.
