ATLANTA — Georgia Attorney General Chris Carr says his office, along with the Federal Trade Commission (FTC) and partners in 17 other states, has shut down what officials describe as a deceptive charity fundraising scheme that misled donors and pocketed millions of dollars meant for breast cancer screenings.

The case centers on Kars-R-Us.com, Inc. and its operators, Michael Irwin and Lisa Frank. According to a complaint filed by the FTC and states, the company solicited vehicle donations nationwide on behalf of the United Breast Cancer Foundation (UBCF), and is accused of keeping millions of dollars that were donated for breast cancer screenings.

Investigators say that of the more than $45 million raised between 2017 and 2022, only about $126,000, less than one percent, was used for screenings.

Georgia was the tenth largest donor state, with nearly 2,000 cars donated and valued at more than $908,000.

Under a proposed settlement order, Irwin will be permanently banned from any fundraising activity. Frank and Kars-R-Us are also prohibited from making misrepresentations related to fundraising, or in the marketing or sale of any product or service, and must substantiate any future claims.

“For anyone to fraudulently solicit donations for something as serious as breast cancer detection is absolutely unconscionable,” Attorney General Carr said in a release. “Schemes like this prey on kind-hearted Georgians and take away from legitimate charities that are working to support patients and survivors.”

The FTC’s Bureau of Consumer Protection also issued a statement, calling the case a warning to others. “This case should send a strong message to fundraisers that the FTC will take action if they misrepresent the truth and exploit the kindness of generous donors for their own gain,” Christopher Mufarrige, the bureau’s director, said in a release.

The proposed settlement also includes a nearly $3.8 million judgment against Kars-R-Us, Irwin, and Frank. That amount is partially suspended due to what officials say is their inability to pay the full sum. If the defendants are found to have misrepresented their financial status, the entire amount would become due.

The settlement was reached with Georgia, the FTC, and officials from 18 other states, as well as state consumer protection agencies in Maryland, North Carolina, South Carolina, and Utah.

Consumers who want guidance on making safe donations and avoiding charity scams can find more information on the Georgia Attorney General’s Consumer Protection Division website.