The Federal Trade Commission and law enforcement partners from every state and the District of Columbia have charged four alleged sham cancer charities and their operators with bilking more than $187 million from donors.

John Roberts reported on "America's Newsroom" that the FTC says this is one of the biggest cases of charity fraud in U.S. history.

Roberts reported that Cancer Fund of America, Children’s Cancer Fund of America, Cancer Support Services and The Breast Cancer Society told donors their tens of millions of dollars would help cancer patients, including children and women suffering from breast cancer.

But according to the complaint, the overwhelming majority of donations benefited the charity's employees, along with their families and friends.

Roberts said that the complaint alleges charities run by James Reynolds Sr., Kyle Effler, Rose Perkins and James Reynolds II "operated as personal fiefdoms characterized by rampant nepotism, flagrant conflicts of interest and excessive insider compensation, with none of the financial and governance controls that any bona fide charity would have adopted."

The money went to cars, trips, luxury cruises, college tuition, gym memberships, Jet Ski outings, sporting events, concert tickets and dating site memberships, Roberts reported.

Georgia Attorney General Sam Olens said this is outright fraud, taking millions from innocent people and giving only 2.7 percent of donations to help cancer patients. It is likely that only a fraction of the donations will ever be recovered.

Roberts reported that in addition to this civil action, criminal charges are expected to be filed.

Two of the charities have already been shut down and officials believe that they have all the evidence they need to shut down the other two, Roberts reported.  

Watch the "America's Newsroom" report above.

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