MIAMI, FL – A nationwide scam preying on the generosity of Americans has been shut down, thanks to a massive collaborative effort by the Federal Trade Commission and 22 state agencies. Michael Irwin, the former president and co-owner of Kars-R-Us.com, Inc., is at the heart of the operation, accused of running a deceptive charity fundraising scheme that lined his pockets while falsely promising aid to breast cancer patients.
The scheme, orchestrated through Kars-R-Us.com, targeted donors across the country, falsely representing that contributions would benefit the United Breast Cancer Foundation, Inc. (UBCF). Investigators allege that Irwin and his accomplice, Lisa Frank, knowingly made misleading claims to solicit donations, diverting funds away from legitimate cancer support and into their own coffers. This wasn’t a simple misunderstanding; it was a calculated operation built on deceit and the exploitation of charitable impulses.
“These operators weren’t interested in saving lives, they were interested in saving a buck,” stated a source within the FTC investigation, speaking on condition of anonymity. “They built a fundraising empire on lies, and the victims are the people who genuinely believed they were helping those battling breast cancer.”
The FTC’s complaint details a pattern of deceptive practices, suggesting a systematic effort to mislead donors about where their money was actually going. While UBCF claims to provide assistance to breast cancer patients, the investigation suggests a significant portion of the funds raised by Kars-R-Us.com never reached the intended recipients. Instead, it appears to have been used to enrich Irwin, Frank, and potentially others involved in the operation.
Under the proposed settlement order, Kars-R-Us.com faces severe restrictions on future fundraising activities, effectively barring them from soliciting donations. More damningly, Michael Irwin is permanently banned from participating in any future fundraising endeavors – a clear signal from the FTC that his days of exploiting charitable giving are over. Lisa Frank’s fate remains unclear as of press time.
This case serves as a stark reminder of the vulnerabilities within the charitable giving system and the need for increased scrutiny of fundraising organizations. While most charities operate with integrity, predators like Irwin and Frank are always lurking, ready to exploit the kindness of others for personal gain. The combined force of federal and state authorities sends a clear message: those who engage in charity fraud will be held accountable.
Key Facts:
- Defendant: Michael Irwin, Lisa Frank, Kars-R-Us.com, Inc.
- Crime: Deceptive Charity Fundraising Scheme
- Location: Nationwide, originating from Florida
- Victims: U.S. Donors
- Agencies Involved: Federal Trade Commission & 22 State Agencies
- Penalty: Restrictions on fundraising, permanent ban for Michael Irwin.
Source: FTC.gov
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