Tuesday, April 13, 2010

Oklahoma – Charity Corruption Investigation

Oklahoma’s Attorney General has filed another in a series of corruption investigations against Feed the Children.  The investigation focuses on the ousting of Larry Jones as the nonprofit’s former president.  The investigation is part of an ongoing case between Mr. Jones and the nonprofit over his termination and management of the organization.  The judge in the case permitted the Attorney General to intervene as of March 23 to protect the public’s interest.

Feed the Children alleges that Mr. Jones took bribes, hid sexually explicit magazines at the charity and set up secret recording devices in the offices of executives at the charity.  Mr. Jones’ response alleges that the charity knowingly failed to pay taxes, misrepresented operations to encourage donations, mismanaged funding, and improperly fired whistleblowers.  Criminal charges against Mr. Jones are one possible outcome of the investigations.

Mr. Jones is seeking reinstatement as president of the nonprofit in a separate lawsuit. 

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More information is available at NewsOK and The Chronicle of Philanthropy.

http://lawprofessors.typepad.com/nonprofit/2010/04/oklahoma-charity-corruption-investigation.html

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