‘The Clinton Foundation has yet to produce definitive and compelling evidence that it was ever authorized appropriately by the IRS to do more than serve as an archival records repository based in Little Rock, Arkansas for the papers and related memorabilia of President Bill Clinton,’ charges respected Wall Street analyst Charles Ortel.
Aside from filing financial reports that were filled with errors and misstatements, notable accounting firm Price Waterhouse Coopers (PWC) neglected to verify whether the Clinton Foundation obtained tax-exempt status for its various sub-entities, including its AIDS charity.
As WND reported:
Ortel’s six-month investigation indicates the Clinton’s have diverted tens of millions of dollars donated for charitable purposes to the personal enrichment of themselves and their close associates.
He says PWC neglected to exercise due diligence in fulfilling its professional responsibilities in conducting even the most basic inquiries required of an honest audit.
PWC, he says, failed to inquire whether the Clinton Foundation has applied for and received duly issued IRS tax-exempt determinations for its various sub-entities and activities, including fighting HIV/AIDS globally under the auspices of the Clinton Health Access Initiative Inc., also known as CHAI.
He notes that there as an “Old CHAI” and a “New CHAI” that was created after Hillary Clinton became secretary of state. In addition, the foundation launched the Clinton Global Initiative and numerous foreign funds and endowments created, for instance, in conjunction with George W. Bush to raise money for the victims of Hurricane Katrina in 2005 and the 2010 earthquake in Haiti.
“It is true that an application to form a companion entity called Clinton Health Access Initiative, Inc. (“New CHAI”) as a tax-exempt organization was approved by the IRS on 15 March 2010,” Ortel acknowledges. “However, the application posted on the Attorney General of New York State Charity Bureau website is incomplete, false, and misleading, so it is difficult to understand why it was approved, less than three months following its submission on or around 31 December 2009, and whether CHAI can reasonably continue to operate having procured IRS tax-exempt approval fraudulently.”
Ortel notes that judging from subsequent filings of IRS Form 990 by New CHAI, its official tax-exempt purpose was: “to support governments to build and strengthen integrated health systems in the developing world and expand access to high-quality care and treatment for HIV/AIDS, malaria and other diseases”
“While laudable, the stated purpose of New CHAI may not afford private donors the possibility of obtaining tax deductions under U.S. law in that furnishing services abroad that are the legitimate responsibilities of foreign governments has been consistently held to be other than a valid charitable purpose as far as U.S. law is concerned,” he argued.
Ortel says the importance of whether or not the Clinton Foundation is validly constituted as a U.S. tax-exempt organization is “fundamental to any analysis of its financial statements.”
He says if it is not validly constituted, “the organization and its directors face substantial financial liabilities as well as other penalties that would severely impact, even bankrupt numerous parties.”
Ortel went on to state that there would be severe “tax consequences for those who donated to what may be a fraudulent charity, including thousands of ordinary individuals and families worldwide, as well as for wealth foundations, foreign donors, foreign governments, and possibly even the U.S. government for all contributions the U.S. government entities have made to the Clinton Foundation since inception.”
Read the full story at WND.
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