‘The Clinton Foundation is charity fraud of epic proportions’
‘Foundation entities are part of a network that has defrauded donors and created illegal private gains of approximately $100 billion’
By Tyler Durden, Sept. 8, 2016
The Clinton Foundation is a rogue charity that has neither been organized nor operated lawfully from its inception in October 1997, says Charles Ortel, a renowned Wall Street analyst who spent over a year investigating the outfit.
Ortel’s scrutiny of the Foundation’s public records, federal and state tax filings and donor disclosures is a case study in international charity fraud of mammoth proportions.
When Ortel tried to match up the Clinton Foundation’s tax filings with the disclosure reports from major donors, he said he started to find problems, including records from the foundation’s offshoots—the Clinton Health Access Initiative and the Clinton Global Initiative—as well as its foreign subsidiaries.
“There are massive discrepancies between what some of the major donors say they gave to the Clinton Foundation and what they wanted it used for, and what the Clinton Foundation said what they got and what they did with it.”
Last year the Clinton Foundation, which was created in 1997, was forced to issue corrected tax filings for several years to correct donation errors. But Ortel said many of the discrepancies remain.
The Clinton family’s mega-charity took in more than $140 million in grants and pledges in 2013 but spent just $9 million on direct aid. The organization spent the vast bulk of its windfall on ‘administration, travel, salaries and bonuses,’ with the fattest payouts going to family friends.
“It seems like the Clinton Foundation operates as a slush fund for the Clintons,” said Bill Allison, a senior fellow at the Sunlight Foundation, a government watchdog group.
In particular, the Clinton Foundation has never been validly authorized to pursue tax-exempt purposes other than as a presidential archive and research facility based in Little Rock, Arkansas. Moreover, its operations have never been controlled by independent trustees and its financial results have never been properly audited by independent accountants.
The Foundation illegally veered from its IRS-authorized mission within days of Bill Clinton’s departure from the White House in January 2001. Since that time, crucial information has been purposefully omitted or obscured in disclosures offered through the Clinton Foundation website.
Beyond any reasonable doubt, the Clinton Charity Network was neither organized nor operated lawfully. A nonprofit corporation must pass both an ‘organizational test’ and an ‘operational test’ to be legitimately exempt from federal income taxes.
The Foundation and each part of the Clinton Charity Network fails either the organizational test, the operational test, or both tests. The consequences for failing to meet either the organizational test or the operational test are severe. In normal circumstances, a charity would have its tax-exempt status revoked retroactively.
The ‘charity’ would then have to refile its tax returns and pay corporate income taxes upon any profits earned from the date its authorization is revoked to the present.
Donors who took tax deductions in the relevant time periods would owe personal income taxes on contributions they had made, and a raft of criminal as well as civil sanctions would likely ensue.
The scope and scale of illegal activities carried out by trustees, executives, significant donors and professional advisors in the names of Clinton Foundation entities are staggering.
All told, declared donations to Clinton Foundation entities from 1997 through 2014 are greater than $2 billion; but this vast amount is likely a pittance when compared to sums sent to affiliated “charities” and relief efforts around the world.
Though required by strict laws, no part of the Clinton Charity Network (including affiliates and joint ventures) has ever procured a comprehensive, independent, and compliant audit of its financial results.
Moreover, no part of the Network is controlled by experienced and independent trustees who can defend against conflicts of interest. Consequently, Clinton charities regularly are used illegally to create substantial ‘private gain’ and to advance the political interests of the Clinton wing of the Democratic Party.
Unless an independent conservator is appointed by the Arkansas State Attorney General, the public will never know the true dimensions of a fraud that started in Bill Clinton’s home state and in Washington, D.C., and then spread throughout the world.
Ortel’s stunning summary concludes: “Based on ongoing analysis of the public record begun in February 2015, the Clinton Foundation entities are part of a network that has defrauded donors and created illegal private gains of approximately $100 billion, and possibly more, since October 1997.”
Charles Ortel, described by the Sunday Times of London as “one of the finest analysts of financial statements on the planet,” uncovered financial discrepancies at General Electric before its stock crashed in 2008.
Charles Ortel’s full report can be found below (pdf link):