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What illegalities would be unearthed if Foundation principles had their past tax filings audited?
IRS TOLL-FREE 1-800-829-0433----you may remain anonymous.
EMAIL .......OAAG.Tax@tax.USDOJ.gov.
REFERENCE The IRS has reported that tax-exempt “foundations and charities” are the locus classicus for tax evasion and money laundering.
The IRS might look at the legal parameters of prosecutable crimes including making false statements to state and federal officials, filing falsified documents, obstruction of proceedings before state and federal agencies, fiduciary negligence, and obstruction of US justice.
The N/P's might have facilitated IRS fraud by integrating:
1. Secret control over N/P fund-raising committees.
2. Requiring only one signature on tax-exempt N/P bank checks.
3. Utilizing pre-signed tax-exempt bank checks.
4. Using secret bank accounts to keep secret the actual financial position of tax-exempt N/P's.
5. Assigning bank deposit and account reconciliation functions of tax-exempts to one person.
6. Conspiring to hide oversight of expenses and supporting vouchers from public view.
7. Having no outside auditor to review tax-exempt N/P's statements.
8. Cashing unusually large amounts of tax-exempt checks.
9. Having no official tax-exempt deposit and withdrawal control system.
Authorities might investigate Foundations' US Postal Service mailings, wire transfers, computer transfers, electronic submissions, and unregulated money transfers, and all bank transfers connected to secret tax-exempt non-profits’ bank accounts.
Fraudulent tax-exempt non-profit activities might have involved using checks passed from one account to another in multiple conspiracies to launder monies.
The stratagem could have been international in its scope due to worldwide connections.
Authorities might determine the extent to which Foundation principles colluded in schemes that may have included misusing reserve bank accounts, concealing transfers, inflating asset values and improperly accounting for transactions.
A formal inquiry should be conducted into tax-exempt Congress-related Foundations and financial activities with officers of publicly-held companies) including (1) Enron-style accounting frauds by manipulating N/P records, (2) bundling contributions into the pockets of politicians, (3) the extent to which networks of companies are financing political candidates in the names of business partners without their knowledge or consent, (4) the extent to which officers of publicly-held companies used accounting fraud to hide illegal campaign contributions, and, (5) the extent to which campaign donations exceeded campaign-finance limits.
Charges might include misappropriating funds to cover personal expenses, fraudulently overcharging for management services, diverting non-profit funds, then converting them to campaign accounts, or in the style of WorldCom greed spending thousands of non-profit dollars on organization credit cards for personal expenses.
A formal inquiry should be undertaken with respect to business dealings between recipients, employees and elected and appointed officials and the extent to which influence-peddling is taking place, and more specifically the extent to which relatives, associates, and principles of the Foundation and co-conspirators or subsets of them, directed political activities from tax-free non-profit organizations in illegal arrangements.
The BIGGEST FRAUDS are between foundation and foundation .....writing checks to each other (which is the MO for laundering tax-exempt monies).
Authorities need to determine the extent to which Foundation principles manipulated philanthropic transactions, such as:
(1) loans, the (2) sale, (3) exchange or (4) leasing of property to related organizations, and donors, and the extent to which organizations reported (5) "excess benefit transactions" on Form 990, and, (6) the extent to which executive pay properly accounted for with the IRS.
Foundation principles need to reveal the dimension of contributions these organizations that may have been illegally redirected to political activity and be requested to explain:
(1) how Foundation principles solicit non-profit contributions,
(2) how non-profit donations are made, and,
(3) the manner in which the Foundation allocated assets.
The Foundation should be asked for details about who inside, and outside, these organizations is soliciting contributions, how the various subcommittees are funded, and the extent to which the Foundation colluding to, perhaps, finance political campaigns surreptitiously, and are engaging in other illegal transactions.
Bookmark to do Monday!
The Rahm Emanuel and Amy Rule Charitable Trust, formed 2002, reported giving (A) nearly $25,000 to the Anshe Emet synagogue and school, Chicago, (B) $15,000 to former president Bill Clinton's "foundation", (C) $14,000 to Marwen, a Chicago "charity" that provides art classes and educational help to low-income children (Amy Rule is on Marwen’s board).
The BIGGEST AND MOST EASILY FACILITATED FRAUDS are between foundation and foundation.....writing checks to each other (which is the MO for laundering tax-exempt monies).
One notorious fraud a few years back-----an individual donated a large sum to a synagogue---the synagogue took a cut, then deposited the rest in an Israeli bank for the donor's use later, out of sight of the taxman and US banking laws.
NEED TO KNOW Authorities need to determine the extent to which Foundation principles manipulated philanthropic transactions, such as:
(1) loans, the (2) sale, (3) exchange or (4) leasing of property to related organizations, and donors, and the extent to which organizations reported (5) "excess benefit transactions" on Form 990, and, (6) the extent to which "executive pay" was properly accounted for with the IRS.
Foundation principles need to reveal the dimension of contributions these organizations that may have been illegally redirected to political activity and be requested to explain:
(1) how non-profit donations are made, and, (2) the manner in which the Foundation allocated assets.
The Foundation should be asked for details about how its various subcommittees are funded, and the extent to which the Foundation is colluding to, perhaps, finance political campaigns surreptitiously, and are engaging in other illegal transactions.