Don't be so hasty to jump to conclusions. These people have a right to defend and explain themselves. It's perfectly reasonable that if they intended to solicit donations from wealthy friends, that they would have expenses to entertain them. As for those they supposedly defrauded, have you considered that this $157,284 may have been contributed by themselves? Is it possible that after a year they decided not to continue and closed the bank account and the charity? I see nothing illegal here.
This organization is obviously a fraud. Any accountant with limited experience can clearly see that the vast majority of the funds that they took in were spent on themselves. They ran this organization out of their home and somehow spent $38,610 of the $157,284 that they collected on traveling expenses. Then they had the audacity to spend $43,317 of that $157,284 on 'meals and entertainment.' That is absurd. In addition, they claim that the total average weekly hours worked by all three related Directors (two sisters and a husband) were about 60 hours per week. I would also have to wonder if the $25,013 in legal fees was paid to a family member attorney. On top of that, even though the organization was run out of their home, they somehow managed to spend $8,822 on automobile expenses. I have a strong feeling that an audit would reveal more than the $115,762 listed here was spent on themselves and family members instead of the cancer patients that they promised to help in their mission statement.