Attorney General Anthony G. Brown and Secretary of State Susan C. Lee announced that 22 state agencies from 19 states, including Maryland, along with the Federal Trade Commission (FTC), have stopped a deceptive charity fundraising scheme operated by Kars-R-Us.com, Inc. (Kars) and its executives, Michael Irwin and Lisa Frank.
According to the complaint filed by the FTC and participating states, Kars solicited vehicle donations nationwide on behalf of the United Breast Cancer Foundation, Inc. (UBCF), claiming the proceeds would fund free and low-cost breast cancer screenings. Investigators found that only $126,815—less than 0.3% of the more than $45 million raised—was used for such screenings.
From 2017 to 2022, Kars collected over $45.5 million, with $34.9 million paid to Kars, its operators, and vendors. The remaining funds were largely spent on other purposes, including compensation to UBCF’s CEO. In Maryland alone, about 1,624 vehicles valued at more than $1 million were donated through the program between 2018 and 2022.
Under a proposed settlement order, Irwin is permanently banned from fundraising or providing fundraising services. Frank, the company’s current president and sole owner, along with Kars, is prohibited from making false or misleading statements in fundraising or marketing. The company must also substantiate all future claims.
The defendants face a $3.88 million monetary judgment, partially suspended based on their ability to pay. If they are found to have misrepresented their financial status, the full amount will become due immediately.
Maryland joined the FTC and 18 other states—including Delaware, Pennsylvania, and Virginia—in the action. The Maryland Secretary of State’s Office and the Attorney General’s Office continue to oversee charitable organizations soliciting within the state to ensure donations are used as intended.
Residents can verify whether a charity is registered to solicit in Maryland through the Secretary of State’s Public Registry or report suspected violations by calling 410-974-5534. Tips for charitable giving are available in the Attorney General’s Consumer’s Edge: Charitable Giving Tips publication.
