A fraudulent charity operation that claimed to support women with breast cancer has been shut down after a lawsuit filed by North Carolina Attorney General Jeff Jackson and Secretary of State Elaine Marshall.
The organization, Kars-R-Us.com, operated by Michael Irwin and Lisa Frank, allegedly raised over $45 million through car donations and widespread advertisements in English and Spanish. Donors were told that proceeds from donated vehicles would benefit women battling breast cancer.
However, according to the U.S. Department of Justice, the organization only donated $126,815 of that amount to actual cancer support causes.
Attorney General Jackson stated, “People gave their cars to this company because they wanted to help save the lives of women facing breast cancer. Secretary of State Marshall and I took them to court because you can’t lie to people about where their money or donations are going.”
As part of the settlement, the business must now provide proof of all fundraising claims and is permanently barred from making any deceptive statements about charitable contributions.
Michael Irwin is now banned from any fundraising activities, while Lisa Frank is prohibited from making false fundraising claims.
If either is found to have misrepresented their financial situation to the Federal Trade Commission or state authorities, they will be required to pay $4 million.
In a statement, Secretary of State Marshall emphasized the broader harm caused by such scams: “A charitable donation is an investment in a cause you care about… 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.”
