PROBABLE LEGAL ACTION: We need exposure of PP activities and whether they are in collusion with school personnel. We need to know the scope and dimenson of possible tax fraud, money laundering and misuse of non-profit status.
(1) misrepresenting use of tax dollars raised from education bond referenda;
(2) misuse of tax-exempt monies;
(3) non-profit fraud;
(4) laundering non-profit tax-free monies,
(5) tax fraud.
REFERENCE Under the Bank Secrecy Act, banks are required to establish, implement and maintain programs designed to detect and report suspicious activity indicative of money laundering and other financial crimes.
“The Bank Secrecy Act was enacted to protect the public from harm by identifying and detecting government fraud, money laundering from criminal enterprises, terrorism, tax evasion or other unlawful activities,” the special agent in charge for Internal Revenue Service Criminal Investigation, explained.
L/E needs to examine school bank accounts used to pay for PP activities.
<><> Joint bank accounts might be used to facilitate the transfer of education bond revenue---to pay for personal and private expenses, credit cards, real estate subsidies and vehicle purchases.
<><> To cover their tracks, fake invoices might be created to falsify that money deposited into accounts was being used for legitimate purposes.
The scheme might be advanced by issuing phony statements of payments from muni, federal and state sources that actually covered the transfer of funds for other uses.
<><> L/E should be asked to get ahold of: (1) copies of checks, (2) wire transfers, (3) account statements, (4) invoices, (5) bills, (6) delivery tickets, (7) correspondence including e-mail, contracts, loan agreements, and, (8) any other books or records.
L/E should also explore (a) monies paid to brokers, sub-brokers, (b) family members, (c) mortgage brokers, (d) financial managers, and, (e) real estate agents, brokers, and developers.
<><> L/E should scrutinize non-profit bank accounts for suspicious activites: (A) large deposits, (B) funds transferred from one account into another, (C) frequent requests for withdrawals.
<><> Bank records might also show diversions to secret LLC other accounts, to operate personal businesses. Fraud can also be facilitated by withdrawals, gift cards purchases, credit card purchases and intrabank transfers from govt accounts into personal accounts.
<><> A huge tipoff is whether bank withdrawals support payments for real estate, investment and stock holdings, jewelry, luxury vehicles, resort travel and gifts from luxury outlets.
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Taxpayers demand the Bank Secrecy Act be employed to prosecute NON-PROFITS using govt fraud to advance hidden agendas.
enforcement@SEC.gov
IRS toll free 1-800--829-1040
https://tips.fbi.gov/
Thank you liz!!