Would you like to inspect the original subtitles? These are the user uploaded subtitles that are being translated:
1
00:00:00,400 --> 00:00:05,739
In this episode of American Greed. Our
mission is to lift the spirits and
2
00:00:05,740 --> 00:00:06,790
gladden the hearts.
3
00:00:06,840 --> 00:00:12,039
Jim Reynolds and his family raised $187
million promising to help cancer
4
00:00:12,040 --> 00:00:15,420
victims. He's not a big fellow, but boy,
he has a big heart.
5
00:00:15,660 --> 00:00:19,720
It's a pitch that pulls at the
heartstrings, but it's all a lie.
6
00:00:19,960 --> 00:00:24,719
A lot of good people gave a lot of good
money for a lot of good reasons, and it
7
00:00:24,720 --> 00:00:26,820
just went nowhere positive.
8
00:00:27,530 --> 00:00:32,089
The Reynolds family uses donated money
to live the good life, and suffering
9
00:00:32,090 --> 00:00:34,950
victims seeking comfort get junk
instead.
10
00:00:35,450 --> 00:00:40,289
We got a box, and it said Cancer Fund of
America on it. But when we opened it
11
00:00:40,290 --> 00:00:41,910
up, we were all in shock.
12
00:00:42,370 --> 00:00:46,510
And later, all across the country,
American girls are missing.
13
00:00:47,250 --> 00:00:48,300
Dolls, that is.
14
00:00:48,630 --> 00:00:52,390
And here it goes. The tag's off, and
it's in the skirt, just like that.
15
00:00:52,610 --> 00:00:55,650
For one family, thievery is the tie that
binds.
16
00:00:56,360 --> 00:01:00,520
What made the Bogdanoff such great
thieves is that they work together as a
17
00:01:00,660 --> 00:01:05,098
The Bogdanoff family crisscrosses the
country on a toy -stealing crime spree
18
00:01:05,099 --> 00:01:07,040
worth $7 .1 million.
19
00:01:07,500 --> 00:01:11,759
The Bogdanoffs literally could not walk
into a store without snatching something
20
00:01:11,760 --> 00:01:12,810
on the way out.
21
00:01:28,720 --> 00:01:31,900
The workday is done. The kids are home
from school.
22
00:01:32,220 --> 00:01:34,200
It's time to sit down for dinner.
23
00:01:35,280 --> 00:01:36,620
Then the phone rings.
24
00:01:36,960 --> 00:01:40,800
Hi, how you doing? Who are you? It's the
Cancer Fund of America.
25
00:01:41,370 --> 00:01:45,230
We're a 501c3 charity. We help cancer
patients anywhere in the United States.
26
00:01:45,450 --> 00:01:49,300
Now, what does this do? We provide those
medical supplies and items for men,
27
00:01:49,301 --> 00:01:51,649
women, and children with the fourth
stage cancer.
28
00:01:51,650 --> 00:01:54,709
We're helping the patients with this
one, the people that need the help the
29
00:01:54,710 --> 00:01:56,270
fighting the disease of cancer.
30
00:01:56,271 --> 00:01:59,329
And we just wanted to be sure if the
cancer patients could count on your
31
00:01:59,330 --> 00:02:01,249
continued support. Would that be okay?
32
00:02:01,250 --> 00:02:06,609
According to the National Cancer
Institute, nearly 1 .7 million Americans
33
00:02:06,610 --> 00:02:09,289
diagnosed with the dreaded disease each
year.
34
00:02:09,660 --> 00:02:14,419
So when someone asks for a small
donation to help cancer patients, it may
35
00:02:14,420 --> 00:02:16,380
like there's only one humane response.
36
00:02:17,000 --> 00:02:18,800
Well, I'll go ahead and give $20.
37
00:02:19,040 --> 00:02:20,900
Oh, great, ma 'am. Great. Thank you.
38
00:02:21,260 --> 00:02:26,620
When you hear the word cancer, it then
shivers through your spine.
39
00:02:26,860 --> 00:02:30,620
And so when you hear of a charity that
is...
40
00:02:30,990 --> 00:02:36,649
offering to provide some level of relief
or assistance to either a family or a
41
00:02:36,650 --> 00:02:40,590
victim of cancer, you automatically, you
know, want to help.
42
00:02:40,890 --> 00:02:46,589
We all know family members who have
cancer or died of cancer, and we want to
43
00:02:46,590 --> 00:02:49,170
there when this catastrophe hits the
family.
44
00:02:49,490 --> 00:02:53,529
It's out of this desire to help that one
man has built a thriving family
45
00:02:53,530 --> 00:02:58,909
business. Our mission is to lift the
spirits and gladden the heart of the
46
00:02:58,910 --> 00:03:02,540
because when cancer strikes, So
devastating to the family.
47
00:03:03,040 --> 00:03:08,259
Launched in the 1980s in Knoxville,
Tennessee, the Cancer Fund of America is
48
00:03:08,260 --> 00:03:11,760
brainchild of a former Army medic named
Jim Reynolds Sr.
49
00:03:12,420 --> 00:03:13,740
Oh, he was looked up to.
50
00:03:14,800 --> 00:03:19,400
Marilyn Rasmussen lives in Knoxville,
where she attends church with Reynolds.
51
00:03:20,380 --> 00:03:25,720
He was highly respected, at least in the
church, because he had a charity.
52
00:03:26,480 --> 00:03:29,820
After hearing about Reynolds' successful
charity at church,
53
00:03:30,680 --> 00:03:35,419
Rasmussen learns what they're really
doing in 2002, when her father -in -law
54
00:03:35,420 --> 00:03:37,140
Eddie is diagnosed with cancer.
55
00:03:37,540 --> 00:03:43,059
We got a box in the mail out of Clear
Blue Sky, and it said Cancer Fund of
56
00:03:43,060 --> 00:03:47,299
America on it. We didn't ask for it, but
it cheered my father -in -law up when
57
00:03:47,300 --> 00:03:48,179
he saw the box.
58
00:03:48,180 --> 00:03:50,470
You know, he was real excited, and we
were too.
59
00:03:51,220 --> 00:03:56,459
The box, and many like it, are paid for
with donations brought in by an army of
60
00:03:56,460 --> 00:03:57,510
telemarketers.
61
00:03:57,511 --> 00:04:02,009
They called it sales. They didn't call
it, you know, fundraising. They called
62
00:04:02,010 --> 00:04:07,829
sales. At a nondescript office in the
Detroit suburbs, Ebony Squirewell first
63
00:04:07,830 --> 00:04:12,610
goes to work for a fundraising offshoot
of the Cancer Fund of America in 2003.
64
00:04:13,650 --> 00:04:17,249
Some people will have to learn to be
good at it, but I was good at it right
65
00:04:17,250 --> 00:04:18,300
away.
66
00:04:18,570 --> 00:04:23,030
Squirewell sees the opportunity as more
than just a way to pay the bills.
67
00:04:23,600 --> 00:04:27,759
It's a very sensitive topic when it
comes to cancer because there are cancer
68
00:04:27,760 --> 00:04:32,540
patients in my family. So I said, oh,
okay, if it's to help cancer patients,
69
00:04:32,700 --> 00:04:33,750
I'll do it.
70
00:04:33,880 --> 00:04:38,259
It's been years since she made calls she
thought were helping, but the scripted
71
00:04:38,260 --> 00:04:41,360
pitch she gave is still seared in her
mind.
72
00:04:41,361 --> 00:04:44,719
Hello, this is Ebony from the Cancer
Fund of America Support Services. How
73
00:04:44,720 --> 00:04:45,770
you today?
74
00:04:45,771 --> 00:04:48,909
He would say, fine. I said, well, great.
We're calling really brief. We're
75
00:04:48,910 --> 00:04:51,789
continuing our cancer rate program where
we're helping cancer patients with
76
00:04:51,790 --> 00:04:53,789
their medical supplies and hospice care.
77
00:04:53,790 --> 00:04:56,849
Anything we can do to help these cancer
patients in their time of need, we just
78
00:04:56,850 --> 00:04:59,189
wanted to make sure we can get you out a
pledge card and count on you for your
79
00:04:59,190 --> 00:05:00,570
support. Would that be okay?
80
00:05:01,030 --> 00:05:06,209
Over the years, Squirewell becomes an
expert at bringing in cash for a cause
81
00:05:06,210 --> 00:05:07,159
believes in.
82
00:05:07,160 --> 00:05:11,199
And while she has daily contact with the
managers who run the call room, she
83
00:05:11,200 --> 00:05:14,000
never actually meets the man behind the
curtain.
84
00:05:14,400 --> 00:05:17,890
Hello, I'm Jim Reynolds. I'm president
for the Cancer Fund of America.
85
00:05:17,891 --> 00:05:21,339
This is our national headquarters here,
and we'd like to welcome you.
86
00:05:21,340 --> 00:05:25,499
Before starting his charity, Reynolds
worked at the well -known and unrelated
87
00:05:25,500 --> 00:05:29,620
American Cancer Society, which focuses
on cancer research.
88
00:05:30,340 --> 00:05:35,319
When he sets out on his own, he creates
a pitch meant to set his new charity
89
00:05:35,320 --> 00:05:38,420
apart. Now, there's nothing wrong with
research.
90
00:05:38,720 --> 00:05:41,730
I hope they find a cure for cancer
through research someday.
91
00:05:42,000 --> 00:05:47,319
But there's so many organizations out
there doing research that the few
92
00:05:47,320 --> 00:05:50,859
we could put into research would be like
a drop in the ocean. I think the Cancer
93
00:05:50,860 --> 00:05:57,319
Fund of America was smart, if you could
use that phrase with this group, by
94
00:05:57,320 --> 00:06:02,120
saying to people, we're going to help
people who have the disease right now.
95
00:06:02,750 --> 00:06:07,669
Art Taylor of the Better Business
Bureau's Wise Giving Alliance says
96
00:06:07,670 --> 00:06:09,190
value in differentiation.
97
00:06:09,830 --> 00:06:12,300
Yeah, there are others out there doing
research.
98
00:06:12,350 --> 00:06:16,190
That's fine, but when will we ever find
the cure for cancer?
99
00:06:16,970 --> 00:06:20,829
People need help today, and that's what
we're going to do. We're going to help
100
00:06:20,830 --> 00:06:21,869
them right now.
101
00:06:21,870 --> 00:06:25,120
There's many people out there that
research is just too late for.
102
00:06:25,560 --> 00:06:27,260
We've got to do something to help.
103
00:06:27,620 --> 00:06:32,719
CFA and their callers give potential
donors a laundry list of ways they're
104
00:06:32,720 --> 00:06:37,519
helping. You're going to provide them
with transportation, pain medication,
105
00:06:37,520 --> 00:06:38,720
know, medical supplies.
106
00:06:38,880 --> 00:06:42,580
These are all things that they
represented Cancer Fund would provide.
107
00:06:42,900 --> 00:06:45,940
And they say it's all done on a massive
scale.
108
00:06:46,890 --> 00:06:51,989
The Cancer Fund of America is the only
national cancer charity that has
109
00:06:51,990 --> 00:06:56,869
commodities and financial aid to victims
of cancer as its major priority. In
110
00:06:56,870 --> 00:07:02,769
this past year alone, CFA has tended to
the needs of some 70 ,000 clients with
111
00:07:02,770 --> 00:07:05,930
items designed to lift their spirits and
improve their lives.
112
00:07:06,150 --> 00:07:11,129
Helping out with pain meds,
transportation, and hospice sounds like
113
00:07:11,130 --> 00:07:14,930
venture. Without your help, this
warehouse could stand empty.
114
00:07:15,360 --> 00:07:20,379
In this video, made for telemarketers
like Ebony Squirewell, they make it
115
00:07:20,380 --> 00:07:22,120
that they can't do it alone.
116
00:07:22,520 --> 00:07:27,759
And over 450 hospices with more than 5
,000 patients would not have some of the
117
00:07:27,760 --> 00:07:31,919
things necessary to ease the suffering
and pain, as well as sustaining their
118
00:07:31,920 --> 00:07:32,939
nutritional health.
119
00:07:32,940 --> 00:07:37,679
If this type of encouragement isn't
enough, there are other ways to keep
120
00:07:37,680 --> 00:07:38,740
fundraisers busy.
121
00:07:39,600 --> 00:07:42,060
We were never allowed to accept no.
122
00:07:42,780 --> 00:07:47,799
Squire Wells says her job depended on
hitting a quota, and persistence was
123
00:07:47,800 --> 00:07:48,850
essential.
124
00:07:48,960 --> 00:07:51,640
If they say no, then I'll give them a
smaller amount.
125
00:07:51,641 --> 00:07:55,339
You know, I'll give them a smaller
amount. They say no to 50, I'll say 25.
126
00:07:55,340 --> 00:07:57,220
They say no to 25, I'll say 15.
127
00:07:57,540 --> 00:08:01,280
They say no to 15, I'll say 10. You
know, I'm going to make you say yeah,
128
00:08:01,380 --> 00:08:04,560
because, again, I'm not asking for
anything today.
129
00:08:04,780 --> 00:08:08,779
I'm just asking to send a pledge card
out to you and counting on you for your
130
00:08:08,780 --> 00:08:10,200
support. Is that okay?
131
00:08:10,730 --> 00:08:15,050
Provided with a list of rebuttal answers
meant to turn a no into a yes,
132
00:08:15,330 --> 00:08:19,729
Squirewell says she could always count
on getting a pledge from a certain
133
00:08:19,730 --> 00:08:21,750
target. Older people.
134
00:08:22,390 --> 00:08:28,130
And pretty much knew that the rebuttals
would get the older people.
135
00:08:28,570 --> 00:08:34,668
The calls made by Squirewell and many,
many other employees add up in a big,
136
00:08:34,669 --> 00:08:35,719
way.
137
00:08:36,000 --> 00:08:41,499
Between 2008 and 2012, CFA and two other
cancer charities run by the Reynolds
138
00:08:41,500 --> 00:08:44,460
family raised $187 million.
139
00:08:45,620 --> 00:08:47,880
But what are they actually doing?
140
00:08:48,920 --> 00:08:54,319
In the fall of 2002, Marilyn Rasmussen's
father -in -law, Eddie, opens the box
141
00:08:54,320 --> 00:08:56,780
he got from CFA and finds out.
142
00:08:57,880 --> 00:09:01,040
There were a couple of bags of chips in
there.
143
00:09:01,340 --> 00:09:05,360
There was a coloring book. There was
little crayons. There was a baby doll.
144
00:09:05,860 --> 00:09:10,020
There was nothing there that he could
use.
145
00:09:10,440 --> 00:09:13,180
There was nothing there to give him
comfort.
146
00:09:14,320 --> 00:09:18,940
This is one of the items that was in the
box that my husband's father received.
147
00:09:19,340 --> 00:09:23,399
It's the only thing that we saved
because I like wild animals. I think
148
00:09:23,400 --> 00:09:26,050
of funny because the bottom of it says
storm brewing.
149
00:09:26,051 --> 00:09:29,729
But I have to ask you, what does this
have to do with helping somebody with
150
00:09:29,730 --> 00:09:33,530
cancer? How is this supposed to give him
comfort?
151
00:09:34,170 --> 00:09:40,249
I mean, it's pretty, and I love animals,
but it didn't help my father -in -law
152
00:09:40,250 --> 00:09:44,329
any. It was just a bunch of things put
together in a box. It looked like
153
00:09:44,330 --> 00:09:47,929
somebody went through their warehouse
and just threw things in the box and
154
00:09:47,930 --> 00:09:49,830
just closed it up and shipped it out.
155
00:09:50,210 --> 00:09:53,350
And I was just, I was shocked.
156
00:09:54,060 --> 00:09:58,719
Eddie Rasmussen dies a few months later,
and his daughter -in -law says the
157
00:09:58,720 --> 00:10:02,340
cancer fund's box felt like one last
indignity.
158
00:10:02,680 --> 00:10:06,899
When he got that box, you know, he was
in a lot of physical pain. He was
159
00:10:06,900 --> 00:10:10,260
suffering, and that really did not help
him any.
160
00:10:11,060 --> 00:10:16,019
Next on American Greed, find out who's
really cashing in at the Reynolds Family
161
00:10:16,020 --> 00:10:17,380
Cancer Charities.
162
00:10:17,580 --> 00:10:19,200
It makes you sick to your stomach.
163
00:10:20,000 --> 00:10:21,460
It makes you actually sick.
164
00:10:31,910 --> 00:10:33,230
This is where it all begins.
165
00:10:33,330 --> 00:10:37,120
This is the back part of our building.
We have a 10 ,000 square foot warehouse.
166
00:10:37,121 --> 00:10:38,249
Jim Reynolds Sr.
167
00:10:38,250 --> 00:10:41,390
brings in a fortune promising to help
those in need.
168
00:10:41,750 --> 00:10:47,069
We begin to understand that no person is
alone in our society as long as we care
169
00:10:47,070 --> 00:10:48,610
and are there to help.
170
00:10:48,830 --> 00:10:52,849
For years, donors are promised their
money will be used to provide pain
171
00:10:52,850 --> 00:10:58,269
medications, to transport patients to
chemo appointments, and to pay for
172
00:10:58,270 --> 00:11:00,710
care. You know, there were some things
that you...
173
00:11:00,920 --> 00:11:05,059
had to say in the script. You know, you
had to say that you were helping cancer
174
00:11:05,060 --> 00:11:07,590
patients with medical supplies and
hospice care.
175
00:11:07,880 --> 00:11:09,700
But there's a glaring problem.
176
00:11:10,220 --> 00:11:15,239
They did not purchase pain medication,
they did not provide hospice care, and
177
00:11:15,240 --> 00:11:16,659
they did not provide transportation.
178
00:11:16,660 --> 00:11:20,359
None of the money went to those three
programs because they simply didn't
179
00:11:20,360 --> 00:11:25,259
Instead, patients get boxes, like the
one received by Marilyn Rasmussen's
180
00:11:25,260 --> 00:11:26,249
-in -law.
181
00:11:26,250 --> 00:11:31,469
Some contain potentially useful items
like instant breakfast, adult diapers,
182
00:11:31,470 --> 00:11:32,520
bed pads.
183
00:11:32,630 --> 00:11:37,449
Others contain curious odds and ends
that are of no particular use to cancer
184
00:11:37,450 --> 00:11:42,570
patients. Things like sample -sized
toiletries, over -the -counter
185
00:11:43,090 --> 00:11:49,889
toys, makeup, DVDs, and certain food
items which Reynolds later tries hard
186
00:11:49,890 --> 00:11:50,940
to justify.
187
00:11:51,699 --> 00:11:56,059
Originally, a lot of the packs included
little Debbie snack cakes, which I think
188
00:11:56,060 --> 00:11:58,720
he explained in a deposition made people
happy.
189
00:11:59,180 --> 00:12:04,519
And at some point, they switched to
providing moon pies, which he explained
190
00:12:04,520 --> 00:12:05,499
people happier.
191
00:12:05,500 --> 00:12:10,299
Moon pies aren't the only way Reynolds
says his charity is making patients
192
00:12:10,300 --> 00:12:15,219
happy. Last year, we started a program
just for children in addition to the
193
00:12:15,220 --> 00:12:19,130
regular programs that we have giving
products out. We started writing checks.
194
00:12:19,200 --> 00:12:25,100
And we've written, to date, 1 ,375
checks for a total of $95 ,000.
195
00:12:25,720 --> 00:12:29,779
While it sounds good, the program
delivers just a fraction of what's been
196
00:12:29,780 --> 00:12:34,939
promised. If you look at the actual
records of that, the amount they
197
00:12:34,940 --> 00:12:38,339
was paltry. It was in the thousands of
dollars, even though they were raising
198
00:12:38,340 --> 00:12:39,199
billions of dollars.
199
00:12:39,200 --> 00:12:43,800
Less than 3 % actually went to cancer
patients and victims.
200
00:12:44,460 --> 00:12:47,000
That's appalling. This would offend...
201
00:12:48,150 --> 00:12:51,870
even organized criminals and mobsters.
202
00:12:52,210 --> 00:12:54,750
So where, then, is the rest going?
203
00:12:54,990 --> 00:12:57,710
Most of it goes to shady telemarketing
companies.
204
00:12:58,170 --> 00:13:02,629
Year after year, Reynolds and his
family's charities sign contracts with
205
00:13:02,630 --> 00:13:07,730
fundraisers, allowing them to keep 80 to
95 percent of the money they bring in.
206
00:13:07,930 --> 00:13:14,490
A vast proportion of every dollar that a
consumer gave for direct assistance.
207
00:13:15,930 --> 00:13:20,090
to cancer patients, their families, went
into the pockets of the telefunders.
208
00:13:20,310 --> 00:13:25,129
Though these fees may seem criminally
high, the Supreme Court has recognized
209
00:13:25,130 --> 00:13:28,110
charity fundraising as a form of free
speech.
210
00:13:28,630 --> 00:13:33,569
Lawmakers can't limit what telemarketers
charge or force them to disclose their
211
00:13:33,570 --> 00:13:34,620
take up front.
212
00:13:35,230 --> 00:13:39,530
Charities are free to spend as much
money as they choose on fundraising.
213
00:13:39,830 --> 00:13:44,770
What they can't do is lie. If they lie,
then they can be prosecuted for fraud.
214
00:13:45,340 --> 00:13:49,399
But most people don't ask the question.
And the real question consumers should
215
00:13:49,400 --> 00:13:52,160
be asking is how much of the money goes
to the program.
216
00:13:52,460 --> 00:13:56,020
In other words, if you tell me you're
raising money to give to cancer
217
00:13:56,021 --> 00:13:58,679
how much will cancer patients actually
receive?
218
00:13:58,680 --> 00:14:03,699
After telemarketers take their huge cut,
it's time for the Reynolds family to
219
00:14:03,700 --> 00:14:04,750
get what's left.
220
00:14:05,300 --> 00:14:10,800
Cancer Fund was really almost a full
employment operation for James Reynolds
221
00:14:10,900 --> 00:14:11,950
and his family.
222
00:14:12,010 --> 00:14:17,269
As seen in this chart of intertwined
relationships, CFA spins off two
223
00:14:17,270 --> 00:14:23,029
franchises, the Breast Cancer Society
run by Reynolds' son and the Children's
224
00:14:23,030 --> 00:14:25,930
Cancer Fund of America run by senior's
ex -wife.
225
00:14:26,190 --> 00:14:31,469
At all three charities, helping cancer
patients takes a back seat to providing
226
00:14:31,470 --> 00:14:35,030
unnecessary jobs to unqualified family
and friends.
227
00:14:35,710 --> 00:14:37,870
and paying them unjustifiable salaries.
228
00:14:38,250 --> 00:14:43,629
This self -dealing goes on for years,
thanks to supposedly independent boards
229
00:14:43,630 --> 00:14:47,909
that are stacked with people whose main
qualification is their lack of
230
00:14:47,910 --> 00:14:52,889
independence. The board members were
acquaintances, friends, people that
231
00:14:52,890 --> 00:14:57,670
Reynolds Sr. put on the board, and they
exercised no real meaningful oversight.
232
00:14:57,990 --> 00:15:00,370
You don't have anybody who's going to
say...
233
00:15:00,371 --> 00:15:03,979
Wait a minute, too much of the money is
being paid for bonuses, for benefits,
234
00:15:03,980 --> 00:15:10,259
for cars, for credit cards, for tuition,
for loans, when the only person who is
235
00:15:10,260 --> 00:15:13,320
responsible for that is the patriarch of
the family.
236
00:15:13,600 --> 00:15:18,999
Even in years when donations fall, the
charities cut programs but raise
237
00:15:19,000 --> 00:15:24,519
salaries. It makes me sick to know that
many of these people were earning more
238
00:15:24,520 --> 00:15:28,780
in salary than they were actually
contributing to people with cancer.
239
00:15:29,290 --> 00:15:30,670
It makes you actually thick.
240
00:15:30,910 --> 00:15:36,189
With little to no oversight, money for
cancer victims pays instead for company
241
00:15:36,190 --> 00:15:42,269
cars, college tuitions, gym memberships,
jet ski outings, cruises, and trips to
242
00:15:42,270 --> 00:15:43,229
Disney World.
243
00:15:43,230 --> 00:15:48,629
Plus, fees for dating websites, tickets
to concerts and sporting events, meals
244
00:15:48,630 --> 00:15:51,790
at Hooters, and purchases at Victoria's
Secret.
245
00:15:52,530 --> 00:15:56,789
And Reynolds is free to enjoy it all in
a half -million -dollar house
246
00:15:56,790 --> 00:15:58,430
overlooking a lake.
247
00:15:59,440 --> 00:16:05,799
And what he built was an empire of
family members, greed, and a culture
248
00:16:05,800 --> 00:16:07,300
the exact opposite of charity.
249
00:16:07,680 --> 00:16:12,580
This was an organization that was built
just for their own personal benefit.
250
00:16:12,581 --> 00:16:14,899
This should have been shut down
immediately.
251
00:16:14,900 --> 00:16:20,559
Up next on American Greed. Nobody had
ever looked at all of these
252
00:16:20,560 --> 00:16:21,610
together.
253
00:16:22,340 --> 00:16:26,939
Investigators look close at the Reynolds
family cancer charities and uncover the
254
00:16:26,940 --> 00:16:30,360
deep web of connections that's allowed
their deceit to continue.
255
00:16:30,580 --> 00:16:37,099
Every time somebody needed an executive
level salary, they would start a new
256
00:16:37,100 --> 00:16:38,150
organization.
257
00:16:47,880 --> 00:16:53,239
But sometimes when we have cash in our
pocket, we don't use it for what we
258
00:16:53,240 --> 00:16:56,840
should or what we need, but we'll use it
for other things.
259
00:16:57,140 --> 00:17:01,919
Jim Reynolds and his charities bring in
millions despite a sordid history that
260
00:17:01,920 --> 00:17:03,300
actually goes back decades.
261
00:17:03,960 --> 00:17:07,140
What they're talking about is Cancer
Fund of America.
262
00:17:07,520 --> 00:17:12,419
News reports say he set up the Cancer
Fund after being fired from a legitimate
263
00:17:12,420 --> 00:17:15,359
cancer organization for stealing a car.
264
00:17:16,079 --> 00:17:21,459
Soon after setting up his own so -called
charity, Reynolds found himself in hot
265
00:17:21,460 --> 00:17:26,338
water. Connecticut and Pennsylvania have
filed separate lawsuits against Cancer
266
00:17:26,339 --> 00:17:27,299
Fund of America.
267
00:17:27,300 --> 00:17:32,999
Both complaints allege that in 1990,
Cancer Fund of America participated in a
268
00:17:33,000 --> 00:17:35,960
scheme to donate near -worthless goods.
269
00:17:36,360 --> 00:17:42,279
Despite lawsuit after lawsuit after
lawsuit, donors keep opening their
270
00:17:42,280 --> 00:17:43,480
for Reynolds Charities.
271
00:17:44,240 --> 00:17:49,699
The public isn't going to like this, but
ultimately the burden is on each of us
272
00:17:49,700 --> 00:17:54,939
as donors to make sure that we're giving
to legitimate charities. If donors had
273
00:17:54,940 --> 00:18:00,719
gone to our website and looked up the
Cancer Fund of America, they would have
274
00:18:00,720 --> 00:18:06,319
seen a report with a big red exclamation
point warning them to avoid that
275
00:18:06,320 --> 00:18:11,399
charity at all costs. And we look at
areas such as how well a charity is
276
00:18:11,400 --> 00:18:16,299
governed. Though it's possible to ferret
out bad charities by researching them
277
00:18:16,300 --> 00:18:22,319
on sites like Charity Navigator or the
Better Business Bureau's Give .org, few
278
00:18:22,320 --> 00:18:26,959
people take the time to do so. And for
those who do check them out, Reynolds &
279
00:18:26,960 --> 00:18:31,359
Company takes steps to falsely make
themselves look more efficient than they
280
00:18:31,360 --> 00:18:34,080
are. Remember that junk in a box?
281
00:18:34,480 --> 00:18:39,759
They use their tax forms to report
hugely inflated values for everything
282
00:18:39,760 --> 00:18:40,810
give away.
283
00:18:41,130 --> 00:18:46,909
What they would do is take a pill that
in reality should be valued at two cents
284
00:18:46,910 --> 00:18:52,690
and value it on their book as being
donated at a value of a dollar.
285
00:18:53,070 --> 00:18:58,509
It's an accounting trick, and it allows
inefficient charities to make themselves
286
00:18:58,510 --> 00:19:00,389
look more efficient than they really
are.
287
00:19:00,390 --> 00:19:04,729
This tricky accounting creates the
illusion that more of their money is
288
00:19:04,730 --> 00:19:08,190
cancer patients than to themselves and
their fundraisers.
289
00:19:08,600 --> 00:19:13,020
And hiding what they do is only part of
what allows them to continue on.
290
00:19:13,360 --> 00:19:17,719
There's really not enough cops on the
beat in this area. The charity's law
291
00:19:17,720 --> 00:19:20,370
enforcement regulatory community is
pretty small.
292
00:19:20,460 --> 00:19:27,379
Most state charity regulators don't have
the kind of resources that they need to
293
00:19:27,380 --> 00:19:31,520
look into every case. Many people expect
that the IRS...
294
00:19:32,040 --> 00:19:35,860
is going to be the agency that will go
after unscrupulous charities.
295
00:19:36,060 --> 00:19:41,319
But the IRS is not really set up to do
lots and lots of audits of charities
296
00:19:41,320 --> 00:19:46,739
either. In this environment, a bad actor
could simply pay a fine in one state
297
00:19:46,740 --> 00:19:49,320
and keep ripping off consumers
elsewhere.
298
00:19:50,000 --> 00:19:53,660
In the past, when there was this type of
abusive practice,
299
00:19:54,540 --> 00:19:59,799
I believe that a state would almost pass
the trash to the next state. An
300
00:19:59,800 --> 00:20:01,439
organization would be investigated.
301
00:20:01,440 --> 00:20:06,339
They would shut down and then go to
another community and then take
302
00:20:06,340 --> 00:20:07,900
a whole different set of donors.
303
00:20:08,140 --> 00:20:09,190
Recently,
304
00:20:10,920 --> 00:20:15,159
though, charity regulators have begun
banding together to go after bad
305
00:20:15,160 --> 00:20:19,560
charities, hoping that a joint action
will leave them no safe harbor.
306
00:20:20,060 --> 00:20:23,220
Nobody had ever looked at all of these
organizations.
307
00:20:24,700 --> 00:20:30,519
Over lunch at a conference in 2010,
Elizabeth Korsmo, an assistant attorney
308
00:20:30,520 --> 00:20:36,099
general in New Mexico, and a colleague
from Missouri discussed using this multi
309
00:20:36,100 --> 00:20:38,720
-state strategy against the Reynolds
family.
310
00:20:39,060 --> 00:20:43,619
They made the recommendation that they
thought this organization was somewhat
311
00:20:43,620 --> 00:20:50,499
suspicious. And literally that is how
this probe began. It was two government
312
00:20:50,500 --> 00:20:55,499
professionals being concerned and began
to move forward. And it became one of
313
00:20:55,500 --> 00:20:58,260
the largest actions in the history of
this country.
314
00:20:58,520 --> 00:21:02,019
I believe it was on the Cancer Fund
website. They had a listing of their
315
00:21:02,020 --> 00:21:07,439
employees. Working with investigator
Elena Goodman, CORSMO helps establish
316
00:21:07,440 --> 00:21:11,719
deep web of connections between the
Cancer Fund of America and other
317
00:21:11,720 --> 00:21:12,780
Family Charities.
318
00:21:13,450 --> 00:21:20,069
Once those relationships were revealed,
then we could see how, instead of just
319
00:21:20,070 --> 00:21:26,470
one charity that had poor fundraising
costs and poor program expenses,
320
00:21:26,790 --> 00:21:31,510
we could see how this was an intentional
setup that had expanded.
321
00:21:32,390 --> 00:21:39,089
Every time somebody needed an executive
-level salary, they would start a new
322
00:21:39,090 --> 00:21:40,140
organization.
323
00:21:40,200 --> 00:21:44,959
As their knowledge of the charities
grows, all 50 states and the District of
324
00:21:44,960 --> 00:21:49,379
Columbia join together with the Federal
Trade Commission in a joint effort to
325
00:21:49,380 --> 00:21:51,680
shut down Reynolds' cancerous effort.
326
00:21:52,160 --> 00:21:53,620
And the news begins to spread.
327
00:21:53,960 --> 00:21:58,879
The names sound charitable, but a
lawsuit filed by the FTC in all 50
328
00:21:58,880 --> 00:22:04,439
calls these charities shams. Next on
American Greed, after decades of
329
00:22:04,440 --> 00:22:06,660
the public, Reynolds faces justice.
330
00:22:06,960 --> 00:22:12,119
And then, a different kind of thieving
family, pursued by a dogged detective in
331
00:22:12,120 --> 00:22:14,300
the case of the missing... dolls?
332
00:22:15,060 --> 00:22:18,460
See, I never thought that I'd be talking
to American Greed.
333
00:22:19,080 --> 00:22:21,730
over hundreds of missing American Groval
products.
334
00:22:31,580 --> 00:22:37,839
In May 2015, charity regulators from
every corner of the country filed a
335
00:22:37,840 --> 00:22:42,119
complaint in Arizona, which eventually
leads to the shuttering of the Reynolds
336
00:22:42,120 --> 00:22:43,170
family charities.
337
00:22:43,580 --> 00:22:45,700
This is an historic moment.
338
00:22:45,701 --> 00:22:50,029
the first time the federal government
and all of the state charity regulators
339
00:22:50,030 --> 00:22:54,350
have joined together to present a united
front against charity fraud.
340
00:22:54,930 --> 00:23:00,069
Reynolds is banned from ever running a
charity again and is slapped with a $75
341
00:23:00,070 --> 00:23:01,310
million judgment.
342
00:23:02,250 --> 00:23:07,209
He's forced to sell off what's left of
the charity and hand over his pontoon
343
00:23:07,210 --> 00:23:10,290
boat, two guns, and a collection of beer
signs.
344
00:23:11,230 --> 00:23:16,189
But he'll only have to pay up if he
reenters the charity business or if he's
345
00:23:16,190 --> 00:23:17,750
found to have hidden his assets.
346
00:23:18,290 --> 00:23:22,550
Reynolds did not respond to repeated
requests from American Greed for
347
00:23:23,130 --> 00:23:29,589
But in court documents, he remains
unrepentant and summarizes his decades
348
00:23:29,590 --> 00:23:34,829
with a Mormon hymn that reads, Have I
done any good in the world today? Have I
349
00:23:34,830 --> 00:23:35,970
helped anyone in need?
350
00:23:36,290 --> 00:23:41,810
Have I cheered up the sad, made someone
feel glad? If not, I have failed indeed.
351
00:23:43,090 --> 00:23:47,729
Neither Reynolds nor any family member
has faced criminal prosecution for the
352
00:23:47,730 --> 00:23:50,970
scam that brought in $187 million.
353
00:23:52,410 --> 00:23:58,050
You can commit petty crimes in America
and go to jail, and yet this Mr.
354
00:23:58,270 --> 00:24:03,949
Reynolds can create a license to steal
from any good American, and he won't see
355
00:24:03,950 --> 00:24:07,560
the inside of a jail cell, and there's
something wrong with that type of
356
00:24:15,699 --> 00:24:22,419
In 2013, at a Barnes & Noble in
Murfreesboro, Tennessee, 45 American
357
00:24:22,420 --> 00:24:25,620
dolls worth more than $1 ,000 have gone
missing.
358
00:24:25,900 --> 00:24:31,459
The next day, a few hours down the road
in Alpharetta, Georgia, 64 more of the
359
00:24:31,460 --> 00:24:34,700
dolls, each costing $24, disappeared.
360
00:24:35,600 --> 00:24:40,819
It's quite unusual to have that much
product come missing in such a short
361
00:24:40,820 --> 00:24:41,870
window.
362
00:24:41,960 --> 00:24:47,139
When thieves strike, it's time for
Barnes & Noble investigator Glenn
363
00:24:47,140 --> 00:24:48,059
step in.
364
00:24:48,060 --> 00:24:53,480
It was absolutely unique in my career to
have something materialize so quickly.
365
00:24:53,640 --> 00:24:58,239
So the stores were able to quickly
assemble images of who they really
366
00:24:58,240 --> 00:24:59,290
was responsible.
367
00:24:59,860 --> 00:25:03,140
Entering right now is the first
unidentified male.
368
00:25:03,610 --> 00:25:08,229
The investigation begins with a look at
store surveillance video that captures
369
00:25:08,230 --> 00:25:12,690
the comings and goings of all honest
customers and would -be thieves.
370
00:25:13,210 --> 00:25:14,650
And I'll pause the video here.
371
00:25:14,750 --> 00:25:16,570
I want to point out her skirt.
372
00:25:17,310 --> 00:25:23,909
This is a pleated skirt. You can see
that it's clearly flat on the front and
373
00:25:23,910 --> 00:25:25,730
flows freely as she's walking.
374
00:25:26,070 --> 00:25:29,290
To the untrained eye, a skirt is just a
skirt.
375
00:25:29,710 --> 00:25:34,550
But to store Detective Glenn Justice, it
could be a shoplifter's shopping bag.
376
00:25:35,110 --> 00:25:40,589
She will be followed by a female, blonde
hair, pulled back, blue jeans in her
377
00:25:40,590 --> 00:25:46,790
30s. Okay, and here they are exiting. I
want to point out the skirt.
378
00:25:47,370 --> 00:25:50,610
It's no longer hugging her body.
379
00:25:51,090 --> 00:25:56,729
It's actually protruding. The reason for
that is it's concealed underneath of
380
00:25:56,730 --> 00:25:57,780
that in a pouch.
381
00:25:58,220 --> 00:26:01,590
or every single American Girl doll that
was in the store at the time.
382
00:26:01,620 --> 00:26:05,759
All right, so this is the very next day
in Alpharetta, Georgia, right, a suburb
383
00:26:05,760 --> 00:26:11,820
of greater Atlanta, Georgia. And in the
store comes the same female, same skirt,
384
00:26:11,920 --> 00:26:17,580
followed by the male right behind that,
just the same female, hair pulled back,
385
00:26:17,700 --> 00:26:19,900
blonde, blue jeans, entering the store.
386
00:26:20,620 --> 00:26:26,199
Justice has spotted the same trio
entering the victimized stores 224 miles
387
00:26:26,200 --> 00:26:27,250
apart.
388
00:26:27,550 --> 00:26:31,089
There's no doubt in my mind at that time
that these are the same three
389
00:26:31,090 --> 00:26:36,069
individuals that hit Tennessee, which is
a consistent behavior with a
390
00:26:36,070 --> 00:26:41,110
professional shoplifter. I realized that
all I had was images of three people,
391
00:26:41,150 --> 00:26:47,070
and it was my job to leverage that into
what their identities were.
392
00:26:47,750 --> 00:26:51,909
There used to be a time when detectives
would hit local pawn shops to see if
393
00:26:51,910 --> 00:26:54,690
anyone had come in trying to unload
stolen goods.
394
00:26:55,360 --> 00:26:57,380
Now they start somewhere else.
395
00:26:57,680 --> 00:27:03,439
The online marketplaces, i .e. Amazon,
eBay, and a plethora of others, have
396
00:27:03,440 --> 00:27:09,120
given the ability to quickly lift and
sell large quantities of stolen product.
397
00:27:10,140 --> 00:27:12,860
However, that is a double -edged sword.
398
00:27:13,080 --> 00:27:18,219
All of the listings and sales of that
product can be researched quite quickly
399
00:27:18,220 --> 00:27:20,870
and efficiently to ferret out this type
of activity.
400
00:27:21,310 --> 00:27:25,949
Using special software, it's possible to
find missing items if you know what to
401
00:27:25,950 --> 00:27:26,869
look for.
402
00:27:26,870 --> 00:27:32,789
In this case, American Girl minis sold
in mass quantities at prices that are
403
00:27:32,790 --> 00:27:33,840
below retail.
404
00:27:34,290 --> 00:27:39,869
I conducted a search, and it returned
two accounts and two accounts only. In
405
00:27:39,870 --> 00:27:44,290
less than seven minutes, I knew who my
culprits were.
406
00:27:45,030 --> 00:27:50,150
Working with eBay, he learns the suspect
accounts are from the Chicago area.
407
00:27:50,800 --> 00:27:56,819
One belongs to a 71 -year -old man who
Justice suspects may be the fence, that
408
00:27:56,820 --> 00:27:59,880
is, the person buying and selling
products for the thieves.
409
00:28:00,640 --> 00:28:05,620
The other account leads to a husband and
wife named Bronco and Layla Bogdanoff,
410
00:28:05,640 --> 00:28:07,280
as well as their daughter Julia.
411
00:28:08,060 --> 00:28:12,819
A Google search turns up criminal
histories and mugshots, and when he
412
00:28:12,820 --> 00:28:17,400
them to the people caught on camera,
Justice knows he's on to his thieves.
413
00:28:18,120 --> 00:28:23,919
Being able to pull that ghost out of
thin air and put an identity with them,
414
00:28:23,920 --> 00:28:26,020
is, it's intoxicating.
415
00:28:26,380 --> 00:28:30,720
And when the final numbers come in,
Justice sees that along with their
416
00:28:31,000 --> 00:28:36,160
the Bogdanoffs have stolen an astounding
$7 .1 million worth of merchandise.
417
00:28:37,060 --> 00:28:39,420
$7 million was quite a surprise.
418
00:28:39,720 --> 00:28:44,960
As a matter of fact, to date, that's
probably the very largest, most
419
00:28:46,070 --> 00:28:47,990
case that I have been involved with.
420
00:28:48,410 --> 00:28:53,169
Next on American Greed, the products
they target may be small, but the family
421
00:28:53,170 --> 00:28:55,910
business has the Bogdanoffs living
large.
422
00:28:56,410 --> 00:29:01,809
And the type of living they were able to
sustain by chronic theft, yeah, it was
423
00:29:01,810 --> 00:29:06,829
disturbing. Could you spot the
Bogdanoffs in action? Take a closer look
424
00:29:06,830 --> 00:29:09,830
thievery at AmericanGreed .CNBC .com.
425
00:29:11,890 --> 00:29:13,950
Want inside information from the show?
426
00:29:15,040 --> 00:29:16,540
Join the Greed social network.
427
00:29:16,660 --> 00:29:20,160
Like us on American Greed's Facebook
page. We'll be right back.
428
00:29:26,900 --> 00:29:31,699
Making off with millions, the Bogdanoff
family is part of a big problem that
429
00:29:31,700 --> 00:29:36,400
CNBC retail reporter Courtney Reagan
says is only getting bigger.
430
00:29:37,000 --> 00:29:42,619
The National Retail Federation estimates
that $45 billion in losses occur in
431
00:29:42,620 --> 00:29:47,059
retail due to shrinkage. Shrinkage being
the retail industry term for inventory
432
00:29:47,060 --> 00:29:52,419
loss, which comes from theft by either
consumers or employees or goods that are
433
00:29:52,420 --> 00:29:57,259
otherwise damaged or unsellable. When an
item disappears off the shelf, who
434
00:29:57,260 --> 00:29:59,060
ultimately pays the price?
435
00:29:59,560 --> 00:30:04,019
When you're thinking about the prices
that shoppers pay at stores, if you see
436
00:30:04,020 --> 00:30:08,759
store or a retailer that has a high
amount of shrinkage or theft, that means
437
00:30:08,760 --> 00:30:12,280
that is not a profit, it's a loss. And
in order to make up for that loss,
438
00:30:12,540 --> 00:30:17,439
they're going to have to increase the
prices, which ultimately means that
439
00:30:17,440 --> 00:30:21,420
shoppers can end up paying more to make
up for the dishonesty.
440
00:30:22,000 --> 00:30:26,740
With thievery on the rise, the
Bogdanoffs are some of the best in the
441
00:30:27,100 --> 00:30:30,180
It seemed like theft was a way of life
for the Bogdanoffs.
442
00:30:30,420 --> 00:30:35,659
According to former federal prosecutor
Renato Mariotti, there's a secret to
443
00:30:35,660 --> 00:30:36,710
their success.
444
00:30:36,820 --> 00:30:41,019
What made the Bogdanoffs such great
thieves is that they worked together as
445
00:30:41,020 --> 00:30:44,219
team. I mean, this is a family that had
been working together for years.
446
00:30:44,220 --> 00:30:49,879
You had the father, Bronco Bogdanoff,
who would remove, you know, difficult to
447
00:30:49,880 --> 00:30:51,840
remove security wrappings off of.
448
00:30:52,429 --> 00:30:57,909
You had the mother, Layla Bogdanoff, who
would be able to secrete items in her
449
00:30:57,910 --> 00:31:02,729
skirt, hide things in a way that would
be difficult for store personnel to find
450
00:31:02,730 --> 00:31:04,490
and make them hesitant to search.
451
00:31:04,491 --> 00:31:08,409
And then, of course, you had the
daughter, Julia Bogdanoff, who would
452
00:31:08,410 --> 00:31:13,089
them as a lookout, looking to see if
store employees were paying attention,
453
00:31:13,090 --> 00:31:17,209
if they were, to quickly interfere with
them so that the other two could make a
454
00:31:17,210 --> 00:31:20,879
getaway. Here's another example of the
bug on us. You're going to see here the
455
00:31:20,880 --> 00:31:22,380
EAS, the security activation.
456
00:31:22,760 --> 00:31:27,360
The daughter's role running interference
can be seen very clearly in this video.
457
00:31:27,800 --> 00:31:32,499
Julia's role, again, is to intercept any
employee that would try to follow and
458
00:31:32,500 --> 00:31:33,820
stop her mother and father.
459
00:31:34,040 --> 00:31:38,440
Here you see the employees responding to
the activation of the security device.
460
00:31:39,380 --> 00:31:44,539
She's engaging them in conversation to
try to give mom and dad time to get in
461
00:31:44,540 --> 00:31:45,820
their vehicle and flee.
462
00:31:46,330 --> 00:31:49,670
So this is just a great illustration of
how they operate.
463
00:31:50,030 --> 00:31:55,889
The Bogdanoff success starts before they
go into a store with research on
464
00:31:55,890 --> 00:31:56,970
consumer demand.
465
00:31:57,450 --> 00:31:59,750
They chose their product brilliantly.
466
00:32:00,010 --> 00:32:06,690
All of the product that they would
target was brand new, in demand,
467
00:32:07,170 --> 00:32:08,750
easily monetized.
468
00:32:08,950 --> 00:32:10,630
The Bogdanoffs were smart enough.
469
00:32:10,880 --> 00:32:15,559
to locate the highest value items they
could think of that were small and could
470
00:32:15,560 --> 00:32:18,640
fit inside a skirt. So they would go
after Lego sets.
471
00:32:19,080 --> 00:32:24,039
Not the $10 Lego sets or $20 Lego sets
that you buy for your little kid to play
472
00:32:24,040 --> 00:32:28,559
with, but expensive Lego sets that were
collector's items that would retail for
473
00:32:28,560 --> 00:32:29,999
several hundred dollars each.
474
00:32:30,000 --> 00:32:34,999
Their thievery from stores including
Barnes & Noble and Toys R Us makes them
475
00:32:35,000 --> 00:32:37,920
millions, and the Bogdanoffs live the
good life.
476
00:32:38,560 --> 00:32:43,859
It's hard to believe that stealing toys
and electronics could get you a $1 .3
477
00:32:43,860 --> 00:32:49,159
million house in a rich Chicago suburb.
That's exactly what happened for Bronco
478
00:32:49,160 --> 00:32:52,440
and Layla Boganoff. They lived in a
luxurious home.
479
00:32:52,660 --> 00:32:55,620
They had many cars, some of them luxury
cars.
480
00:32:55,820 --> 00:32:59,519
They lived a very good quality of life
without appearing to be working
481
00:32:59,520 --> 00:33:01,260
legitimately at all.
482
00:33:01,710 --> 00:33:06,649
In December, Glenn Justice travels to
Chicago and confronts the man he
483
00:33:06,650 --> 00:33:08,450
is the Bogdanoff's fence.
484
00:33:09,090 --> 00:33:13,249
The fence listened, and after about a
minute and a half, interrupted me and
485
00:33:13,250 --> 00:33:16,560
said, Mr. Justice, I think I know where
this conversation's going.
486
00:33:16,830 --> 00:33:18,870
I'm not stealing any of this product.
487
00:33:19,370 --> 00:33:22,510
I'm getting it from a specific
individual.
488
00:33:23,050 --> 00:33:28,269
Justice goes with the 71 -year -old gift
shop owner to his home and follows him
489
00:33:28,270 --> 00:33:29,320
into his garage.
490
00:33:33,160 --> 00:33:37,240
And I truly wasn't prepared for what I
was going to see.
491
00:33:39,200 --> 00:33:44,439
It was laid out like a good stock room.
Three of the four walls had shelves with
492
00:33:44,440 --> 00:33:50,299
product neatly stacked by category and
type. And in front of me on the shelves
493
00:33:50,300 --> 00:33:56,340
were hundreds of my Missing American
Girl doll product right in front of me.
494
00:33:56,980 --> 00:33:59,810
Do I have your permission to record this
conversation?
495
00:33:59,840 --> 00:34:00,890
Yes, you do.
496
00:34:00,910 --> 00:34:06,609
The man agrees to tape a recorded
statement and tells Justice all about
497
00:34:06,610 --> 00:34:11,129
who's been selling him goods for years,
a business associate he knows not as
498
00:34:11,130 --> 00:34:12,790
Bronco, but Franco.
499
00:34:14,270 --> 00:34:19,709
Unlike most multimillion -dollar crime
partnerships, however, theirs starts
500
00:34:19,710 --> 00:34:21,690
tiny, plush collectibles.
501
00:34:22,600 --> 00:34:24,160
How did you meet him initially?
502
00:34:24,520 --> 00:34:28,040
He approached me in my gift shop with
Beanie Babies to sell.
503
00:34:28,260 --> 00:34:32,840
From that initial meeting over Beanie
Babies, a relationship flourishes.
504
00:34:32,841 --> 00:34:36,499
Can you describe some of the product
that you've bought from him over the
505
00:34:36,500 --> 00:34:43,060
please? Baby monitors, baby carriers,
toys such as Surveys,
506
00:34:43,179 --> 00:34:49,659
American Girl Mini Dolls, VTech
electronic toys, NanoBlock,
507
00:34:49,800 --> 00:34:51,820
Lego Movie House.
508
00:34:52,480 --> 00:34:57,880
Over a decade, he's turned Franco's
Goods into a thriving business on eBay.
509
00:34:58,720 --> 00:35:03,219
What would you estimate the yearly
income, gross income, to be over the
510
00:35:03,220 --> 00:35:04,270
several years?
511
00:35:04,360 --> 00:35:06,980
The last couple of years, it's been
about $200 ,000.
512
00:35:07,380 --> 00:35:12,239
Can you estimate how many items you have
sold on your account over the course of
513
00:35:12,240 --> 00:35:13,290
its history?
514
00:35:13,680 --> 00:35:15,320
At least 100 ,000.
515
00:35:15,760 --> 00:35:20,579
What percentage of products sold on your
eBay account was supplied by Franco in
516
00:35:20,580 --> 00:35:21,559
your estimation?
517
00:35:21,560 --> 00:35:27,699
90 to 95%. The tape in hand, Justice can
feel the case of the missing dolls
518
00:35:27,700 --> 00:35:28,750
coming together.
519
00:35:28,780 --> 00:35:31,800
But first, he needs to shut down his
thieves.
520
00:35:32,760 --> 00:35:38,499
Literally, while I am speaking with the
fence in his garage with all of the
521
00:35:38,500 --> 00:35:40,380
product that's stolen.
522
00:35:40,381 --> 00:35:45,439
The Bogdanovs are in southern Florida,
near the Fort Lauderdale area, stealing
523
00:35:45,440 --> 00:35:46,490
from my stores.
524
00:35:46,620 --> 00:35:52,039
Next on American Greed, the feds join
the hunt for the Bogdanovs, and Justice
525
00:35:52,040 --> 00:35:55,120
gets his first clear look at their
thievery in action.
526
00:35:55,380 --> 00:35:59,099
So here we go. Pay attention. It happens
quickly. And here it goes. The tag's
527
00:35:59,100 --> 00:36:01,360
off, and it's in the skirt, just like
that.
528
00:36:12,300 --> 00:36:14,020
In January 2014,
529
00:36:14,940 --> 00:36:19,419
Glenn Justice brings the Bogdanoff case
to Chicago to present it to the U .S.
530
00:36:19,420 --> 00:36:23,579
Secret Service and Renato Mariotti, then
a federal white -collar crime
531
00:36:23,580 --> 00:36:28,379
prosecutor. When I was assigned the
investigation of the Bogdanoffs, I was
532
00:36:28,380 --> 00:36:32,299
investigating what I thought were some
extremely important financial crime
533
00:36:32,300 --> 00:36:38,099
cases. And I was looking at this case
and I was thinking to myself, they want
534
00:36:38,100 --> 00:36:39,150
to investigate.
535
00:36:39,640 --> 00:36:42,100
A group of people who are stealing toys.
536
00:36:42,520 --> 00:36:44,360
It just didn't make sense to me at all.
537
00:36:44,740 --> 00:36:49,559
After I talked to Glenn Justice, I
realized that these people were stealing
538
00:36:49,560 --> 00:36:51,260
scale that was hard to imagine.
539
00:36:52,060 --> 00:36:55,370
Millions of dollars worth of toys on the
tracks were being stolen.
540
00:36:56,060 --> 00:36:59,760
Mariotti decides that it's no longer
time for slaps on the wrist.
541
00:37:00,000 --> 00:37:03,780
He wants to charge this band of
shoplifters with a federal crime.
542
00:37:04,600 --> 00:37:09,959
To do so, he treats the investigation
like a drug case, obtaining a warrant to
543
00:37:09,960 --> 00:37:14,879
track Bronco's cell phone, hoping to
catch the family in the act of
544
00:37:14,880 --> 00:37:17,020
stolen goods across state lines.
545
00:37:17,021 --> 00:37:21,879
Suddenly the phone was on the move. They
were traveling out of state, and they
546
00:37:21,880 --> 00:37:27,479
ended up going to Oklahoma, Texas,
Louisiana, through Mississippi. They
547
00:37:27,480 --> 00:37:32,179
over the place, stealing as they went.
As the Bogdanoffs head south, They have
548
00:37:32,180 --> 00:37:34,280
no idea they're under surveillance.
549
00:37:34,281 --> 00:37:38,619
They watched them go into an Apple store
and come out. They watched them go into
550
00:37:38,620 --> 00:37:42,260
a Starbucks, come out. They watched them
go into Toys R Us, come out.
551
00:37:42,261 --> 00:37:45,939
And what we found out afterwards when we
talked to people for each of those
552
00:37:45,940 --> 00:37:50,339
stores is that literally there were
thefts at every single store. When they
553
00:37:50,340 --> 00:37:54,700
to Starbucks, they stole 10 bags of
coffee. When they went to the FedEx
554
00:37:54,800 --> 00:37:56,240
they stole packing supplies.
555
00:37:56,241 --> 00:38:00,619
The Bogdanoffs literally could not walk
into a store without snatching something
556
00:38:00,620 --> 00:38:05,479
on the way out. Julia, Layla, settling
in. They're looking for product that
557
00:38:05,480 --> 00:38:06,339
want to target.
558
00:38:06,340 --> 00:38:11,059
When the Bogdanoffs enter a Toys R Us in
Houston, investigators have Glenn
559
00:38:11,060 --> 00:38:16,100
Justice contact the company, whose
employees follow their every move on
560
00:38:16,520 --> 00:38:22,140
And this video will illustrate exactly
how the Bogdanoffs operate.
561
00:38:22,640 --> 00:38:26,799
When they first go in, the Bogdanoffs
wander the aisles until they find the
562
00:38:26,800 --> 00:38:28,420
product they've come to collect.
563
00:38:28,740 --> 00:38:35,379
This time, it's Lego Mindstorm blocks,
which have a retail value of $350 per
564
00:38:35,380 --> 00:38:39,099
set. Ultimately, they are going to go
over to where the Lego Mindstorm product
565
00:38:39,100 --> 00:38:43,380
is. Bingo, there you go. There's
selection of one Lego Mindstorm.
566
00:38:44,380 --> 00:38:49,139
Selection of number two. You can clearly
see that's what it is in the cart. And
567
00:38:49,140 --> 00:38:52,929
then Layla is going to grab another
piece of... merchandise and place it on
568
00:38:52,930 --> 00:38:57,289
so that store employees won't see that
mine storm being pushed throughout the
569
00:38:57,290 --> 00:39:02,569
store. Having found the goods, Bronco is
on the move, looking for the perfect
570
00:39:02,570 --> 00:39:03,950
spot in which to work.
571
00:39:04,410 --> 00:39:10,349
What you're seeing now is Bronco and
Layla trying to find an aisle way where
572
00:39:10,350 --> 00:39:14,730
they're comfortable to remove the
security devices and conceal it. Right
573
00:39:14,890 --> 00:39:20,129
you see that? He's actually looking at
the camera. He was physically looking to
574
00:39:20,130 --> 00:39:23,370
see Is there a camera there? Is it
watching me?
575
00:39:24,050 --> 00:39:27,420
And, hey, this might not be a good idea.
Let's go to another aisleway.
576
00:39:27,730 --> 00:39:31,290
Once they've found the right place,
everyone gets to work.
577
00:39:31,710 --> 00:39:36,029
You're going to see Bronco wrestling
with something on the box. Well, that's
578
00:39:36,030 --> 00:39:37,080
something on the box.
579
00:39:37,150 --> 00:39:38,290
It's a security device.
580
00:39:38,490 --> 00:39:43,509
Layla and Julia block the ends of the
aisle so no one happens to walk by and
581
00:39:43,510 --> 00:39:44,750
what Bronco's up to.
582
00:39:44,990 --> 00:39:49,289
And he's going to try to loosen it
enough, and then once it's removed,
583
00:39:49,290 --> 00:39:54,010
hand that to Layla. And here it goes.
The tag's off, and it's in the skirt.
584
00:39:54,730 --> 00:39:55,780
Just like that.
585
00:39:56,790 --> 00:39:58,110
You see her fluffer skirt?
586
00:39:58,390 --> 00:39:59,850
That big box is gone.
587
00:40:00,170 --> 00:40:01,650
Now we're going to do it again.
588
00:40:02,030 --> 00:40:03,350
She's going to grab it.
589
00:40:03,900 --> 00:40:07,520
And go in this side of her skirt. So
here we go. Pay attention. Happens
590
00:40:07,720 --> 00:40:09,160
Right -hand side of the skirt.
591
00:40:09,820 --> 00:40:10,870
Look around.
592
00:40:11,660 --> 00:40:12,710
Into the slit.
593
00:40:13,280 --> 00:40:14,330
In the pouch.
594
00:40:14,820 --> 00:40:20,499
Gone. So if you can imagine this several
times a day, right? Do this. Take as
595
00:40:20,500 --> 00:40:21,860
many as they can. Leave.
596
00:40:22,140 --> 00:40:25,680
Go to the next store. Do the same thing
until the sun goes down.
597
00:40:25,681 --> 00:40:30,479
Investigators watch and wait while the
stolen goods are moved across state
598
00:40:30,480 --> 00:40:31,530
back to Illinois.
599
00:40:32,840 --> 00:40:37,979
When Bronco calls the feds to unload the
hot items, feds move in to make
600
00:40:37,980 --> 00:40:39,030
arrests.
601
00:40:39,600 --> 00:40:43,559
Investigators say Bronco Bogdanoff and
his family were able to live in this
602
00:40:43,560 --> 00:40:47,740
fabulous Northbrook mansion because they
were highly efficient criminals,
603
00:40:48,060 --> 00:40:51,560
specializing in shoplifting at stores
across America.
604
00:40:51,780 --> 00:40:56,479
When federal agents searched the
Bogdanoff mansion, They found a treasure
605
00:40:56,480 --> 00:40:57,279
of merchandise.
606
00:40:57,280 --> 00:41:03,880
Everything from the baby monitors and
toys to cutlery, various clothing items,
607
00:41:03,881 --> 00:41:07,299
all sorts of stuff that you might
imagine at a department store, but it
608
00:41:07,300 --> 00:41:08,859
right in the Bogdanoff's house.
609
00:41:08,860 --> 00:41:10,880
We had caught them red -handed.
610
00:41:11,240 --> 00:41:17,379
In November 2015, the Bogdanoffs all
plead guilty to charges of conspiracy
611
00:41:17,380 --> 00:41:19,700
interstate transportation of stolen
goods.
612
00:41:20,650 --> 00:41:25,369
During her court appearances, Layla
seems less than contrite, blaming the
613
00:41:25,370 --> 00:41:28,890
thievery on her Roma or gypsy
upbringing.
614
00:41:29,430 --> 00:41:35,269
Layla Bogdanoff's attorney argued on
multiple occasions that Layla was born
615
00:41:35,270 --> 00:41:41,849
a culture, a Roma culture, in which she
was taught that stealing was something
616
00:41:41,850 --> 00:41:45,850
that was okay to do. It was actually a
God -given right that she had.
617
00:41:46,130 --> 00:41:50,740
No one buys it. No matter what your
background is, you have to follow the
618
00:41:50,980 --> 00:41:55,439
And no matter who told you, God or your
mother or father, stealing from other
619
00:41:55,440 --> 00:42:00,239
people is just never the right thing to
do. In 2016, a federal judge in Chicago
620
00:42:00,240 --> 00:42:05,239
sentenced his husband and wife, Bronco
and Layla Bogdanoff, to four years and
621
00:42:05,240 --> 00:42:06,620
three years, respectively.
622
00:42:07,200 --> 00:42:10,320
Their daughter, Julia, gets just over a
year.
623
00:42:11,140 --> 00:42:16,659
Even with this gang of thieves behind
bars, shoplifting remains a multi
624
00:42:16,660 --> 00:42:17,699
dollar problem.
625
00:42:17,700 --> 00:42:21,120
And one day, The Bogdanoffs will walk
free.
626
00:42:21,360 --> 00:42:25,659
I hope that a stay in federal prison
convinces the Bogdanoffs that they need
627
00:42:25,660 --> 00:42:26,710
change their life.
628
00:42:26,960 --> 00:42:31,559
But unfortunately, based on the
information I have, it appears that
629
00:42:31,560 --> 00:42:33,109
only job that they've ever known.
630
00:42:33,110 --> 00:42:37,660
Repair and Synchronization by
Easy Subtitles Synchronizer 1.0.0.0
61523
Can't find what you're looking for?
Get subtitles in any language from opensubtitles.com, and translate them here.