keeping them honest: calif. a.g. reaches settlement with charity

by:HKKYO     2019-08-20
For the past few years, CNN investigative reporter Drew Griffin has been investigating charities and they say they want to help those in need, but in fact most of their money is spent elsewhere
Tonight, the California attorney general\'s office announced a huge cash settlement for a charity.
It is known as helping veterans hospital, claiming to help wounded soldiers in the United States.
The charity says it helps boost their morale by giving hand kits to Hospitalized Veterans, which are designed to challenge their minds and help them pass the time while recovering.
But last summer, the California attorney general\'s office filed a civil penalty for veterans helping hospitals, demanding $4 million.
According to the complaint, the state said that the charity paid excessive wages, allowances and illegally traded the donated money.
\"This is an empty shell game,\" California Attorney General\'s special assistant Brian Nelson told our drew Griffin on August 2012 . \".
According to a charity document, Michael Lynch, president of hospital veterans, was paid $389,000, and more.
In a complaint, California authorities said the money donated to charity was also spent on two country clubs near Lynch\'s home.
Price tag: $80,000.
The donated funds are also used to pay for an apartment near Washington, DC. C.
For use by the charity supervisor.
According to the complaint, although according to the tax return, helping hospital veterans earn $65 million in two years, the charity misled the IRS and its donors in the actual go-up of the funds.
$44 million for fund-raising, the charity said it spent $16 million on these manual kits, but the California attorney general\'s office questioned the charity\'s accounting.
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