Consumer Alert: Allegations of Charity Fraud

Americans contributing money to charities claiming to help cancer patients but instead charity operators allegedly pocketed $187 million.
1:42 | 05/20/15

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Transcript for Consumer Alert: Allegations of Charity Fraud
This evening, a consumer alert. Allegations of a shocking scheme. Millions of Americans contributing their hard-earned cash to charities claiming to help cancer patients. But tonight, those charities facing a massive federal lawsuit, accused of pocketing nearly $187 million of your money. How did they spend it and how much actually helped patients with cancer? ABC's senior justice correspondent Pierre Thomas reports tonight. It's your money. Cancer fund of America. Helping today for a brighter tomorrow. Reporter: A fund-raising commercial tugging on the heartstrings and goodwill of caring citizens in the fight against cancer. But today, the federal trade commission and state officials accuse the cancer fund of America -- and three other charities -- of shamefully bilking $187 million from Americans in all 50 states. Millions giving an average of $20 to help make a difference. Some charities used donations to send children with cancer to Disney world. In this case, the children's cancer fund of America used donations to send themselves to Disney world. Reporter: According to the ftc, several charity executives lined their own pockets, using donations to fund personal trips, including cruises and jet ski outings. Some also allegedly used charity credit cards to dine at hooters and to buy lingerie at Victoria's secret. Matt dimmer gave $25. It was really disgusting. In 2012, I lost my father to pancreatic cancer. Reporter: Victims allegedly falling for telemarketers like this. You are helping these children with their hospice support, medical supplies and medication, okay? Those were outright lies. Reporter: Two of the charities have settled. The other two are fighting the ft C's allegations. 2k5i6 David? Pierre Thomas in Washington.

This transcript has been automatically generated and may not be 100% accurate.

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