Saturday, December 15, 2007

Prison and Restitution for Charity Directors

A federal judge sentenced a father and son team to prison terms and restitution payments of more than $39 million.  The pair had run the National School Fitness Foundation as a ponzi scheme.  The foundation sold sports equipment to 350 school districts around the country, promising that grants would be available to pay off the cost of the equipment.  Early participants in the program were repaid with money from school districts that bought the equipment later.  Cameron J. Lewis and his father, J. Tyron Lewis, paid themselves $1.4 million shortly before the foundation went bankrupt.  The Lewises were convicted of mail, wire, and bank fraud, conspiracy to launder funds, and 13 counts of money laundering.

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http://lawprofessors.typepad.com/nonprofit/2007/12/prison-and-rest.html

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