Yes, I've heard this too. When my mom was a child during WWII, she said they would save pennies, nickels and dimes for the Red Cross, to help with small things like coffee and candy for the soldiers. They later found out that the Red Cross even charged the soldiers for coffee.
Her sentiments echo those of your father.
My father is a WWII vet.
My parents speak of the Red Cross in the same venomous terms; I forget what the exact story is but there's a particular incident they're really upset about.....